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http://gmcstockpicks.com  Proprietary algorithms at work.  Click here for our free newsletter: http://goo.gl/APYNVJ . This is a review of an undervalued stock in the Healthcare Sector and Medical Instruments and Supplies Industry.   Low priced stocks to buy. We do not look at penny stocks. Stock options are a safer bet than penny stocks.  Like us on Facebook: https://www.facebook.com/gmconner14 Follow us on Twitter: https://twitter.com/gmcstockpicks Add us to your circles on Google Plus:  https://plus.google.com/u/0/+Gmcstockpicks/posts Subscribe to our podcast on iTunes:  https://itunes.apple.com/us/podcast/value-momentum-gmc-stock-picks/id737369520?mt=2 Listen and subscribe to our podcast on Stitcher Radio: http://www.stitcher.com/podcast/value-momentum-gmc-stock-picks?refid=stpr Transcript Below: Everyone Mathis Conner here with Conner management group today is Thursday, January 23, 2014 0:10 and this week within a look at the best healthcare stock to buy right now I hear the opening 0:16 page we see that the company is in the medical instruments and supplies industry and we see 0:23 its 12 month upside potential at 15.7% on to the second slide and we see that the name 0:32 of his company's copayment next ticker symbol H a E was given the name is Haman net access 0:42 HAE MON DTIC asked and you have the right on this company just hundred billion dollars 0:49 is not a household name but we think it's interesting opportunity as will describe the 0:56 following slide so Haman and its diminishing human antics Corporation engages in the design 1:04 development manufacture and marketing of automated blood component collection devices and surgical 1:10 blood salvage devices the United States and internationally it provides various plasma 1:15 products including Pete PCS brand plasma collection equipment and consumables plasma collection 1:22 containers and intravenous solutions swells information technology platforms for plasma 1:29 customers to manage their donors operations and supply chain so basically human that is 1:35 manufactures devices related to the collection of blood processing applied and also equipment 1:44 related to delivery of public website is HAE 8H 80 MON ET ICS.com says triple W Haman and 1:57 ask.com at their headquarters is in Braintree Massachusetts the company was founded in 1971 2:05 they have 3563 employees once again the ticker symbol is HAE there in healthcare sector their 2:15 specific industry is medical instruments and supplies headaches revenues the last 12 months 2:23 totaled $553 million still visible Smallman some some low was we look at the past there 2:31 net income of the last 12 months totaled 30 $31 million and net cash from operation last 2:39 12 months totaled $94 million market capitalization Haman X right now set to $.15 billion on to 2:50 their products and services slide we got a couple of pictures here we've got there logo 2:59 spelling at Haman X a blow that's the scummy blood management company we has couple excerpts 3:06 from the website one is in with their Haman X prize the reduce costs increase revenue 3:13 with says our new donation product is introducing our new whole blood technologies µ and helping 3:22 hospitals and has patient care and manage costs and United you got pictures of "woman 3:32 writing on electronic tablet another technician on Dr. taking one's blood pressure and another 3:41 looks like a bunch of doctors doing surgery I will send a picture of their corporate headquarters 3:48 selected to three started rebuilding and Braintree Massachusetts and we also have pictures of 3:57 the top two executives a picture of Brian Concannon their president and CEO and a picture 4:04 of Peter Allen their president of global global plasma and going on to Summit metrics annual 4:13 revenues the last 12 months for the again $953 million net income $31 million and the 4:20 cash from operations of the last 12 months totaled $94 million taking a look at the operating 4:28 margins headaches operating margins for 2012 was 21.9% after 2013 it's been tracking to 4:39 be 26% so that's a nice increase an and margins and its related to and acquisition that they 4:48 made and 2012 trailing P/E ratio right now is at 69.6 that is unusually high and then 5:00 you sometimes see distortions like that be because of acquisitions and if you can is 5:07 best try to find another source that it will restate that P/E ratio on in on apples apples 5:16 basis but as it stands at the U the trailing P/E ratio set 69.6 to forward P/E ratios at 5:24 16.8 of the paid ratios at 1.5 note not not too high the prices sales at 2.3 also unnecessarily 5:35 high and the price of books at 2.7 and the enterprise value to either.is at 14.6 Bevins 5:45 this getting up a bit high that last one looking at the recent closing price for Haman excessively 5:54 the company close at $41.70 52-week low the company was $37.71 and 52 week high was $45.90 6:10 so the price of the stock right now it's you know basically the middle between it 52-week 6:17 high and the 52-week low of 20 day moving averages at $42.31 the 50 day moving averages 6:25 at $41.94 and the 200 day moving averages at $41.27 so those moving averages are are 6:36 pretty pretty tight so that they Tells you that there hasn't been too much movement as 6:45 of late on in net net basis the average daily trading volume for Haman antics is 334,000 6:53 shares per day data for the company is 0.7 so it is a little less volatile to the market 7:02 on the upside is the downside and the dividend yield is at 0% average dividend payout ratio 7:10 0% Haman antics doesn't pay dividends onto their stock price chart see that around city 7:23 end of February Hemant X was around $40 and the beginning of May drop down to around $38 7:33 and then quickly rose to a high of nearly $46 and late July and then they had a precipitous 7:45 drop from their $46 down to nearly $40 and this happened in late July or early August 7:54 what happened during that period time the their earnings miss of any and that there 8:00 is is quite a bit of pullback the stock bounced around little bit since late July and that 8:08 it declined back down to around 3050 and early November and then increased again past $43 8:17 and its now around $42 so the company's had a little bit of some some upside downs but 8:27 net net over a year ago it since around the the the same price and overall financial statement 8:38 quality of Haman antics is very good the they do they do have some debt and but they do 8:46 have have cash on on hand you know between 150 $200 million in net Morton takes care 8:55 of the debt they have doodad term is as well as the in the working capital demands so the 9:02 vast statements are are in good shape and as we mentioned earlier the operating margins 9:09 are improving substantially increasing from 2122% to 26% and that that's significant a 9:19 change and that's related to and acquisition and needed in August 2012 inquired a company 9:26 called while they quietly transfuse the transmission business from Monica McCall Paul Corporation 9:33 they been integrating it that into their operations additionally their sales over the past five 9:42 years is relates acquisition but the annual rates of sales last five years of increased 9:48 11.5% per year their earnings are expected to increase over the next year and the they 9:58 also made another acquisition of blues mamas acquisition of another company called and 10:09 Morris medicals SL elects collection systems and that's expected to help their their margins 10:16 increase a bit more so you know that are price private trans week we just saw overall the 10:24 past year you would consider flat the other overall market right now were rarer still 10:33 bears were starting to see some pullbacks from time to time different names has so you 10:41 know there are their some near-term headwinds but we we tend to believe that literally some 10:46 markets correct a very savvy they tend to correct quickly and you know past performance 10:55 is no prediction of future but will see how it goes and those still feeling Haman antics 11:00 is a good opportunity there the recent closing price was $41.70 our model C sees a 12 month 11:11 price target of $40.25 so that gives this opportunity 12 month appreciation potential 11:20 15.7% so imminent this is a company we think he should take a closer look at and is in 11:30 the healthcare industry we know that a lot of changes going on and it is not one of the 11:36 bigger companies that we see some upside potential with this name versus a number of others so 11:45 we feel that this is the best healthcare company to buy right now and all to our last slide 11:55 if you haven't yet the sign up for our Saturday morning newsletter you can get by going to 12:05 www.GMCstockpicks.com you be among the first to hear that great at best opportunities in 12:12 the market are picks are result of our own self developed algorithms where we are reviewing 12:20 and analyzing and ranking over 3500 stocks every week so we feel good about what we been 12:28 doing were new in the block and we can show it was just how good we are so good to our 12:33 website and sign up and that's all we have to this week take care and talk to set