Investec Inc. Announces Investment Opinion: Investec Initiates Coverage of Wright Medical Group, Inc. and LifeCell Corp.Business Editors NOTE TO EDITORS: The following is an investment opinion issued by Investec Inc. NEW YORK--(BUSINESS WIRE)--Sept. 25, 2002 Orthopedics and Related Biomaterials are Top Performing Sectors in Medicine Today Robin R. Young, CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. and John J. Chopack, Jr., Life Sciences Research Analysts at Investec Inc., have initiated coverage on Wright Medical Group, Inc. and LifeCell Corp. "We believe that orthopedics is emerging as a premier growth sector in medical devices and that new technologies and favorable demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. will be the forces moving this sector forward," Young said. "In an industry that grew 13% in 2001, and from all indications will continue to post double-digit revenue growth for the foreseeable future, we believe that Wright Medical Group and LifeCell will be among the prime beneficiaries of a resurging orthopedic industry." Wright Medical Group, Inc. (WMGI WMGI Wright Medical Group, Inc - HOLD - $18.10). We are initiating coverage of WMGI with a HOLD rating, as we believe the company is fully valued Fully Valued A stock whose price analysts believe reflects the market's recognition of the company's underlying fundamental earnings power and therefore is unlikely to rise further in price. If the stock goes up from that price, it is called overvalued. at this time. With WMGI's stock at 45.2x 2002 estimated 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. of $0.42, it is 33% above the orthopedic industry average of 34.1x 2002 EPS and fully values the company's expected earning growth rate. LifeCell Corp. (LIFC - STRONG BUY - $1.72). We believe LifeCell's 15-20% annual growth rate, profitability, and attractive valuation support our 12-month price target of $3.50 and a STRONG BUY recommendation for investors accustomed to similar liquidity risk. At 19.1x our CY03 EPS estimate of $0.09, LIFC's current price doesn't reflect the company's inherent value or growth potential. The company has a growing list of major corporate partners and is tissue engineering's first successful business model. Solid revenue growth and rising operating efficiencies are fueling both strong earnings and cash flows for the company. Investec Analysts Young and Chopack closely follow leading medical technology companies with an emphasis on those that pioneer the use of biomaterials, facilitate least invasive surgical techniques and significantly improve diagnostic accuracy. Investec maintains a STRONG BUY recommendation on Orthofix International (OFIX - $25.10) and BUY ratings on Interpore Cross International, Inc. (BONZ BONZ Interpore International (NASDAQ symbol) - $7.00) and Regeneration Technologies (RTIX -$7.03). Investec Inc. makes a market in the shares of: BONZ, LIFC, OFIX, RTIX, and WMGI. Editor's note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : Interviews are available upon request. About Investec Group The Investec Group (JSE JSE See: Johannesburg Stock Exchange Securities Exchange: INT) is an international specialist-banking group which provides a wide range of specialized products and services to a select client base in 15 countries worldwide. The Group is organized in four principal businesses: investment banking, treasury and finance activities, private client activities and asset management. Investec Group employs over 5,000 individuals worldwide. It is one of the Top 25 largest companies listed on the Johannesburg Stock Exchange Johannesburg Stock Exchange (JSE) Established in 1886, the Johannesburg Stock Exchange is the only stock exchange in South Africa. Gold and mining stocks form the majority of shares listed. and ranks among the world's top 350 banks with total assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. exceeding $70 billion. About Investec Inc. Investec Inc. is the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. investment banking arm of Investec Group. The firm is a full service, research-oriented investment bank focusing on companies in the technology, healthcare, and consumer products industries. Investec provides a full range of investment banking services, including public and private equity financings Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. , private placements, mergers and acquisitions, and financial advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal . Clients also benefit from its wealth management and asset management services. This communication is neither an offer to sell nor a solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to buy any securities mentioned herein. The information contained herein has been obtained from sources that we believe to be reliable but we do not guarantee its accuracy or completeness. Investec Inc. and/or its affiliates may have a position in the securities described herein. Available information supporting this recommendation will be furnished upon request. This report is not directed to, nor intended for distribution to or use by, any person or entity who is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject Investec Inc. or its affiliates to any registration or licensing requirement within such jurisdiction. Investec may seek to provide investment banking services for the companies mentioned herein. As is the case with all employees, analyst's compensation is impacted by overall firm profitability, including revenues from Retail Sales, Institutional Sales and Investment Banking. Note that analyst compensation is determined based upon services intended to benefit the investor clients of Investec Inc. and its related companies. Investec Inc. and/or its affiliates usually make a market in BONZ, LIFC, OFIX, RTIX, and WMGI. Investec Inc. and or its employees may sell or buy BONZ, LIFC, OFIX, RTIX, and WMGI from customers on a principal basis. All prices contained in this Press Release are current as of the date of the release. Investec Inc. expects to receive or intends to seek compensation for investment banking services from OFIX, RTIX and BONZ in the next 3 months. A research analyst or a member of the research analyst's household has a financial interest in RTIX (long position). |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion