Wednesday, January 17, 2007

Theragenics (TGX)

The speculation of small Health sector stocks is always fun. You never know what is going to happen next. The FatCat does not give health sector any special treatment. When she looks at a company as a potential target; FatCat asks:

  1. Is this an affordable needed Product on the market? Product is on the Market. Compare to radiation and surgery, seed implant is less expensive and lower risk of incontinence and impotence.
  2. Positive feedback from the physicians, insurance companies and patients? Product is covered by medicare and major insurance providers. It seems to be well liked by patients but FatCat has not talked to enough physicians to get there opinion.
  3. Does the company have a positive cash flow?

    With all three questions answers “YES”, FatCat takes closer look at the company, its management, employees, R&D, and distribution channels. It is kind of simple.

    Bottom line: FatCat bought TGX.