There seems little doubt that nonsurgical, minimally invasive methods of dealing with internal medical problems are the way to go....provided they work. When it comes to removing dangerous blood clots from the system, there is an outfit in Minneapolis that seems to have the problem licked.

Possis Medical (NASDAQ: POSS) is engaged in the design, manufacture and distribution of cardiovascular and vascular medical devices. Its primary product is the AngioJet Rheolytic Thrombectomy System, a nonsurgical, minimally invasive catheter system to remove blood clots from arteries, veins, and grafts without major surgery. Essentially, the system conveys clot-dissolving fluids to the problem area and then withdraws the softened clot material. The devices are used primarily by interventional cardiologists, interventional radiologists, and vascular surgeons. Already approved for use in heart vessels, leg vessels and hemodialysis grafts, the AngioJet Xpeedior catheter received late November FDA marketing approval for application to clots in upper- and lower-extremity peripheral veins. Boston Scientific (NYSE: BSX) is a competitor.

The company pleased investors earlier in the month, when it predicted Q4 revenues of approximately $19.0 million. That topped its May 23 estimate of $17-$18 million and the $17.43 million Street view. Management also said it was optimistic about fiscal 2008 and anticipate revising the firm's annual outlook upward, but would be leaving FY08 sales guidance in the low- to -mid $70 million range for the moment. That range contains the average analyst estimate of $74.20. POSS shares popped through 30-day and 50-day moving average resistance on the news and have since been consolidating the gain in a bullish "pennant" pattern. Equities frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with one "buy" and five "holds." The POSS Price to Sales ratio (2.91) and Price to Book ratio (2.48) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 63% of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 12 months, it has traded between $8.76 and $14.19. A stop-loss of $9.45 looks good here. Note that the firm is expected to announce Q4 results on September 19.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.