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Stocks I / Immucor, Inc.

URL:  http://boards.fool.com/any-fools-for-immucor-24721141.aspx

Subject:  Any fools for Immucor? Date:  10/19/2006  11:23 PM
Author:  graybell Number:  107 of 121

Is this a great company or what? Last post here was 2004. Anyone following immucor? Is there a subscription board for immucor? I only have access to the general and hidden gems boards.

from Valueline:
Immucor's share net may well advance by 30% in fiscal 2007 (year ends May 31st). We look for revenues to grow by 15% over last year's tally, thanks largely to price increases. Indeed, as much as 70% of the company's revenue gain in 2007 could be from price increases. This trend should continue over the next few years, enabling margins to widen nicely. The effect of the higher pricing will be somewhat offset by the rollout of the company's new automated system this year. Echo is scheduled for release in the third quarter. This device is targeted for the small to medium sized hospital market, which has been underserved by Galileo. The Echo rollout will constrain margin expansion somewhat this year, as Immucor may hire additional sales and service people for the launch. However, it probably will not contribute meaningfully to revenues until fiscal 2008, since management expects activation to take around 60 days for each system after it has been put into place. However, this represents an improvement over Galileo, which currently averages about 110 days to validate. it is likely to be the key driver of earnings. The release also corresponds nicely with the company's planned ramp-up of the Japanese market. Beginning in fiscal 2008, sales to Japan should be a contributor to earnings growth. Immucor has made some progress on its system validations. The company was able to get 31 systems into service in the fourth quarter of fiscal 2006, which was higher than the number of orders booked during the period. If this trend continues this year, reagent revenue growth should accelerate since the company would no longer have a large base of inactive systems. Systems that are not active, of course, do not generate reagent revenue, which is Immucor's main source of income. These shares are timely. Moreover, BLUD stock has above-average appreciation potential to 2009–2011, thanks to the strong earnings advances we project to that period. Immucor is the market leader in automated blood testing, and we anticipate that the company will use this as leverage to consistently negotiate price increases into its contracts to late decade.
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