This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Health-Care Reformer: Under the Radar

Stocks in this article: LZR

BOSTON ( TheStreet) -- Companies that are able to reduce the country's exorbitant health-care costs will prove to be lucrative investments. One pint-sized company to consider is Emergent Group (LZR), owner of PRI Medical Technologies, which provides surgical equipment on a fee-for-service basis. The Sun Valley, California-based firm focuses on independent hospitals that are unable to afford specialized surgical tools, specifically, advanced laser technologies.

Emergent Group is minute, with a market value of $52 million and fiscal 2008 revenue of around $23 million. A company of such small stature presents unique investment risks, principally, thin trading volume. Just 9,500 Emergent shares exchange daily, making it a comparatively illiquid security. However, the company offers a lesser-known growth story and sound fundamentals. Over the past three years, Emergent has increased revenue 25% annually, on average, and boosted net income 37% a year.

Its business isn't only profitable, enjoying a gross margin of 47%, but sensible. Hospitals incur a hefty cost for surgical equipment. And purchasing such equipment entails risks: What if demand for operations declines? What if a superior technology emerges? What if the equipment is damaged? A health-care center is required to bear the aforementioned risks when it buys new equipment. Contracting with PRI Medical Technologies eliminates those risks in a cost-effective manner.

In addition, Emergent offers expertise to accompany its rentals, providing hospitals with technical staff experienced in the application and maintenance of equipment. Emergent Group is an appealing investment because it's built upon the maxim of specialization. By focusing on one area of health care and investing its time and money appropriately, it offers a compelling value proposition: providing hospitals, and their patients, with access to state-of-the-art treatments at a reduced cost.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs