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[QUOTE]Originally posted by raybond: [QB] I am getting ready to get back in few ideas that appear to be medical stocks a value investor could love. Fonar (FONR) makes MRI machines and also has four diagnostic imaging facilities in Florida; it also manages 25 MRI scanning facilities, which includes 18 in New York and seven in Florida. According to Fonar's website, it is the oldest magnetic resonance imaging (MRI) company in the industry and its chairman, Dr. Raymond Damadian, is the inventor of the scanning device. Business is pretty good right now, and Fonar's most recent earnings report showed solid gains in revenues and profits. Best of all, the stock looks cheap here, with an EV/EBIT ratio of just 7.3. The F-score is a solid seven, so the company is in decent financial shape with solid prospects. The thing that interested me about this company is its Upright Multi-Position MRI scanner. I have had a few MRIs over the years, and I can tell you I hate being in that tube. This new scanner allows patients to sit upright and watch TV or read a book while the scan is done. It also allows the scan to be done in full weight-bearing position, which can be very useful when examining the back or spine under the stresses they might experience during normal activities. The company has some exciting products under development as well. The OR-360º is a room-size MRI that will allow surgeons, along with their assistants and equipment, to operate without obstruction inside the scanner's magnet using the imagery provided in real time as they work. Fonar also is working on technology for visualizing and quantifying the cerebral hydraulics of the central nervous system. Both of these developments could be growth drivers in the future. As usual, I have run out of room to talk about the other medical companies that pass my basic value/private equity screens. This is all very much a work in progress, but health care is a source of potential 100-to-1 ideas, so finding a way to uncover those with huge potential at bargain prices is worth a little time and effort. [/QB][/QUOTE]
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