In my opinion, you would have to search thousands of micro cap med-tech stocks before you could find a better one than ANGN. The total package under the guidance of CEO Rod Young is nothing but extreme high quality. What we have here, folks, is very high and consistent revenue growth for 9 quarters in a row which is now being combined with significant earnings growth. It would be hard to ask for much more in a company of this size. This is why I believe, although the stock has run up significantly, that much more is in store for the investor who has plenty of patience. The current share price ($9.23 as of this writing) is going to look like a true bargain into the long term (24-48 months). As for myself, although this stock is already my 2nd largest holding in terms of dollars, I will continue to "buy" more shares with extreme confidence.
I think more like a profit of 5 or 10� per quarter, based on net income anywhere between $200k and $400k. One could justify a price range anywhere between $4.00 and $8.00. It may not go down as low as you think.
Yes, the blow-out quarter was a blip, but the company will remain profitable as far as I can tell. The general growth trend is intact. Even without that one customer, revenues are growing at a rate of 10%. How else do you think the company reported positive earnings in recent quarters WITHOUT the blip?
"...The 10Q says that 4 mil of the 8.8 mil total revenue this quarter came from 1 customer who now will not need anymore machines."
Can you explain how you come to the conclusion that the one big customer is done buying machines?
It is true that nearly 40% of revenue came form that one customer last quarter. It is also true that "service revenue" does not kick in until 12 months after a new machine is sold, because servicing is under wartranty for 12 months. It is also true that the CEO said that they expect a 10% increase in revenue from their big customer over the next few quarters (see 10Q). Since ANGN just sold them a ton of new machines -- all of which need no servicing for 12 months -- it stands to reason that the 10% increase in revenue (from the one customer) is in the form of sales of new machines. To clarify this assumtpion, the CEO said in the 10Q that service revenue is not expected to increase until 2007.