6 Medical Device Makers Poised for Growth

As the credit crunch continues, many companies supplying high-end, expensive medical equipment and machines have been hit hard on reduced earnings.<!----> Hospitals are finding it harder to borrow money for large purchases, especially on machines. It has become harder to justify spending a large sum of money (often in excess of a million dollars) on machines that, regardless of their medical advantage over older or traditional equipment, have not proven their economic viability.

The companies that are newer and are introducing their own versions of products or new types of equipment entirely have been hit the hardest. Despite the significant decline of many of these companies, this issue has stayed relatively untouched and unmentioned in the media. Companies that are poised to recover quickly all have similar qualities: balance sheets lacking long term debt with significant cash positions, have at least four quarters of profitability over the last six quarters, and an expensive product(s) that is gaining attention among the medical community but not necessarily widely adopted. Many of these companies have declined over 40% over the last 6 months.