BlueStone Capital Partners, L.P., Initiates Coverage on ESC Medical Systems, Ltd. With a Long - Term Buy Rating.NEW YORK--(BUSINESS WIRE)--November 18, 1998--Senior Analyst, Scott Baily of BlueStone bluestone, common name for the blue, crystalline heptahydrate of cupric sulfate called chalcanthite, a minor ore of copper. It also refers to a fine-grained, light to dark colored blue-gray sandstone. Capital Partners, L.P. initiates coverage on ESC See escape character and escape key. See also ESC/P. ESC - escape Medical Systems, Ltd. (ESCMF-NASDAQ) with a LONG-TERM BUY rating. ESC Medical Systems Ltd. Headquartered in Yokneam, Israel, develops, manufactures and markets a broad range of medical devices for a variety of esthetic es·thet·ic adj. Variant of aesthetic. medical procedures such as the treatment of hair removal, skin resurfacing Skin Resurfacing Definition Skin resurfacing employs a variety of techniques to change the surface texture and appearance of the skin. Common skin resurfacing techniques include chemical peels, dermabrasion, and laser resurfacing. , cellulite cel·lu·lite n. A fatty deposit causing a dimpled or uneven appearance, as around the thighs. Cellulite Cellulite is dimply skin caused by uneven fat deposits beneath the surface. removal, and benign vascular and pigmented lesions, among others. Analyst's Summary: - We are initiating coverage of ESCMF with a LONG-TERM BUY rating. Although the 3Q FY98 results were disappointing, we believe ESCMF's product portfolio, leading market share, and future outlook remain very attractive. With ESCMF's stock selling at $9 1/16, we believe it offers aggressive investors a compelling investment value. Our 12-18 month price target is $15-$20. - ESCMF currently has the broadest and most diversified product line for aesthetic/cosmetic lasers and intense pulsed light Intense Pulsed Light (IPL), as most commonly employed by non-specialist medical practitioners and beauticians, is a method of hair removal from the body involving the use of a specially constructed xenon flash lamp and focusing optics. products in the medical laser industry, offering more than 20 commercial products for a wide range of clinical procedures and medical specialties. - A key component of ESCMF's growth has been the strategic acquisition of companies and technologies, which we expect to continue in the future. Since mid-1995, ESCMF has made five acquisitions - the most recent being Laser Industries, Ltd. in February 1998 - which have increased sales by over $110 million, and helped to position the company as an industry leader by adding products, gaining market penetration and expanded distribution. - ESCMF benefits from a favorable tax status since its headquarters are in Yokneam, Israel, an Approved Enterprise Zone. By investing in manufacturing and R&D, ESCMF can extend its tax-free status, which currently is between 8-10 years. - ESCMF's financials are quite solid. At 3Q FY98, ESCMF had $140 million in cash, a current ratio of 3.72, and a debt/total capital ratio of 41.5%. In addition, ESCMF recently completed a 1 million share buyback, and its board approved a second 1 million share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. (which should benefit EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. in future quarters) and the repurchase of a portion of its convertible bonds. BlueStone Capital Partners, L.P. is a full service investment banking and brokerage firm that delivers financial services to emerging growth and medium size companies worldwide. BlueStone Capital assists clients in maximizing their growth by providing sophisticated investment strategies that are designed to achieve clients' strategic, operating and financial goals. |
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