Medical Device Investing. Bullish on Cryolife, Inc. (NYSE: CRY), BSD Mecisal (NASDAQ: BSDM), Aligh Tech. (NASDAQ: ALGN) and Conceptus, Inc. (NASDAQ: CPTS)
Medical device companies have seen a solid trend upward in the market lately. Some of them are small-cap firms that have unique inventions or offer specialized gadgets and services that larger companies either don’t have on the market, or do not offer. Because this is an often over-looked sector on Wall Street, this article highlights several emerging growth companies worth a second look. The companies offer potential investors tremendous long-term potential, particularly if you can spot the best businesses to purchase. There are a number of factors that make medical device companies uniquely desirable.
The company that releases a new device, especially a patented device, can gain a sizeable share of the market. Patents are imperative in order to protect crucial elements that make the product distinctive and deserving of top price. Businesses that obtain a premium price for their inventions produce higher margins which can give investors a greater yield on their money. In order to identify the companies with the best potential, keep an eye on their research and development activities, their filings with regulatory authorities and authorizations from them.
Cryolife Inc. (NYSE: CRY) preserves and distributes human tissues for transplantation globally. The company also develops, manufactures medical gadgets for cardiac and vascular procedures. The company boasts a market cap of $170 million and is currently selling for $6.20 per share. On 12/12/12, CryoLife will trade ex-dividend, for its quarterly dividend of $0.025, payable on 12/21/12. CryoLife anticipates paying quarterly dividends each year. In accordance with the number of shares presently on the market, the company expects to pay an annual dividend of approximately $2.7 million. Analysts are bullish on the stock.
BSD Medical Corp. (NASDAQ: BSDM) is another one to watch. Since achieving approval for their MicroThermX Microwave Ablation System (MTX-180) this past August, BSDM has gained an astonishing 500%. The MTX-180 is intended to provide an improved ablation system for the ever growing soft tissue ablation oncology market. The market is expected to reach $2.0 billion in sales. BSDM has a market cap of $46 million and is trading at $1.55. Community sentiment is bullish. Align Technology Inc. (NASDAQ: ALGN) designs, manufactures, and markets the invisalign system for treating the misalignment of teeth. The company has a market cap of $2 billion. Shares are trading at $26.50. Conceptus, Inc. (NASDAQ: CPTS) develops, and markets minimally invasive mechanisms for reproductive medical applications. The company has a market cap of $678 million and is trading at $21.42. Again, community sentiment is bullish.
The medical device sector is well positioned for growth. There is a growing demand for healthcare as the elderly become a greater percentage of the global population. Moreover, the innovations offered by the companies provide ways to improve the lives of everyone. Growth investors will benefit from the rapid innovation that many companies can accomplish. Value investors will find decent opportunities on temporary declines in the price of a company’s stock. As always, prospective investors should consider the long-term opportunities as well as the risk of the company and its inventions.