% | $
Quotes you view appear here for quick access.

Cantel Medical Corp. Message Board

  • medreprocess medreprocess Dec 29, 2009 12:33 PM Flag

    Next target for Cantel

    They purchased Minntech, and now need to dig deeper into the reprocessing business.

    SRI Surgical, stock STRC, does $100M in sales and only has a market cap of $12M. Cantel needs to take them out now. Stryker just took competitor Ascent out for 5 times sales. STRC is at a major discount and Board of Directors need to capitalize here.

    Just my opinion. The future will be bright for reprocessing in this garbage economy. Cantel already knows that.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • anyone want to share info on this company?

    • medre... What are your thoughts about Cantel as a pure play? H1N1 thought to be reemerging this spring and the face mask sales dorve the sales growth in Q3 and Q4.

      • 1 Reply to wowilly22
      • Maybe some pop next spring, but what will drive the growth beyond that is my longer term concern. This is a great company and in a nice market. My thought is they are topped out at current market cap levels based on future single digit growth. They either need to sell the company or acquire. They are in the position for both options unlike others. With stock at current levels, they can do a positive long term aquistion. Requirements should mandate they take on something they know, can leverage, their existing sales force can sell, and has a low current valuation.

        Otherwise, what else is the future catalyst here?

    • Economies of scale can turn $100M of revenue into $10M annual profit very quickly. Just fire their upper MGT, use CMN sales force, close Corporate & accounting overlaps, end stock grants, and it will be done immediately.

    • STRC? I looked at it -- why do you think CMN would be interested? STRC has no revenue growth at all, too much debt, and has not had a profitable quarter since 2005. Sounds like acquisition of a headache to me.

      • 1 Reply to Eggplant101
      • Ready for takeoff in 2010 w/ new partner cardinal health, and the turnaround mostly behind them.

        $100M in revenue w/ only a $12M market cap?? try to find that elsewhere in the Healthcare industry. Cash flow and EBITDA kicking strong despite all the one time charges and hits the last couple of years. $6.20 book value.

        Just my opinion that this is the place to be. Stryker paid 5 times sales with the same vision. Green and cost savings would certainly seem to fit this new economy we live in. I am long STRC obviously.

        Good luck in 2010.

57.74+0.41(+0.72%)10:45 AMEST