LifeCell Corporation (NASDAQ: LIFC) provides
surgeons with regenerative and reconstructive tissue matrices for soft tissue repair. Products include AlloDerm, for plastic reconstructive, general surgical, burn and periodontal procedures; Strattice, for plastic reconstructive and general surgical procedures; Graftjacket, for orthopedic applications and lower extremity wounds; Allocraft, for bone grafting procedures; and Repliform, for urogynecologic surgical procedures. The materials are sold in the US and abroad, through a direct sales force and through such distributors as Boston Scientific (NYSE: BSX).
The company pleased investors last week, when it reported Q4 EPS of 19 cents and revenues of $52.6 million. Analysts had been expecting 17 cents and $52.2 million. Management also guided FY08 EPS to $0.98-$1.06 ($1.04 consensus) and FY08 revenues to $233-$243 million ($238.89M consensus). Needham subsequently upgraded the issue to "strong buy" and boosted its price target to $55.
The stock
price popped on the news and has since been consolidating the gain in a bullish "flag" pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Altogether, brokers now recommend the issue with two "strong buys", three "buys" and six "holds". Analysts expect a 33% growth rate, through the next year. The LIFC Sales Growth rate (32.76%), Operating Margin (22.72%), Net Profit Margin (14.07%), Return on Assets (14.37%) and Return on Investment (17.89%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 90% of the outstanding shares. Over the past 52 weeks, LIFC has traded between $23.29 and $48.28. A stop-loss of $35.50 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in either of the stocks mentioned above.
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Reader Comments (Page 1 of 1)
3-19-2008 @ 11:14AM
Rob said...
Good observation. Also check out
http://wallastoninvestments.com/bear-i-phone-brazillian-stocks-and-timber