Good for the Heart

Written by GSCR Staff   
Wednesday, 06 March 2013 09:11

Hopefully winter had its last triumph here in the Midwest and East Coast and we can put the winter coats, gloves, scarves, and hats away soon.  Frankly, I am tired of the Old Man.

MGC Diagnostics (NASDAQ – MGCD - $6.35) is the highlighted stock this morning with some good news after the market closed yesterday.  The company markets non-invasive cardiorespiratory diagnostic products that include that include Spirometry, Complete Pulmonary Function Ultima PF, and Body Plethysmography product categories, which enable the early detection of lung disease; evaluating the effect of medication; monitoring patients with chronic disease; diagnosing lung diseases, such as asthma, emphysema and bronchitis/chronic obstructive pulmonary disease; managing treatment; assessing the surgical risk of lung transplant and lung reduction candidates; and evaluating the impact of diseases, such as neuromuscular disease on breathing.  The company brands and markets its products in the US and internationally.  Additionally, the company offers cardiopulmonary exercise testing, ergometers, diagnostic and rehabilitative treadmills, and electronic medical records interfaces, such as BreezeConnect HL7 interface technology software, installation, and support for communications interfaces.

There has been some heartening news related to the MGC recently that should aid in healthy revenue going forward.  MD Buyline’s User Satisfaction Report gave the company the top rating in all related categories for the fourth consecutive quarter.  Also, National Jewish Health, ranked the top respiratory hospital in the nation for the past 15 years by US News and World Report, picked MGC diagnostics as its preferred provider of cardiopulmonary diagnostic instrumentation.  Finally, Frontera Strategies, a leading provider of in-office cardiac, pulmonary, vascular and testing services with over 2,000 partners across Texas and Oklahoma, announced a partnership with MGC for purchase of diagnostic equipment for an undisclosed amount on February 27th.

MGC announced financial results after the market close highlighted by 1Q13 recurring revenue of $2.7 million, or 39% of total first quarter revenue and $8.9 million cash and cash equivalents, and $13.2 million of working capital and no long-term debt.  The MGCD charts also indicate a bullish trend for the short term.  The stock could go on a run once it breaks the $7.00 level to $8 or higher.

Have a great day!

Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours. 

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