Good for the Heart

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 27^th.

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. 

Disclaimer:

This Market Monitor blog was prepared for informational purposes only. Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research, which typically highlights small cap companies, and Goldman Opportunity Research, which features micro cap companies in a sponsored research format. Thus, the Select product reflects the Firm’s internally generated stock ideas while the Opportunity product reflects sponsored research reports.

It is important to note that while we may track performance separately, we utilize the same coverage criteria in determining coverage of all stocks in both research formats. Please view the company’s individual disclosures for each engagement, which can be found in each company-specific report. All information contained in this blog, newsletter and in our reports were provided by the Companies or generated from our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.

The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research blog, report, note, or newsletter is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.

This blog does not take into account the investment objectives, financial situation, or particular needs of any particular person. This blog does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA or with any state securities regulatory authority.

ALL INFORMATION IN THIS BLOG, REPORT OR NEWSLETTER IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS   INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.

For more information, visit our Disclaimer: www.goldmanresearch.com