Seeking Alpha

When most med-tech companies trade at an EV-to-sales multiple of 2x to 4x, Medical Action Industries' (MDCI) 0.4x multiple is a pretty clear signal that something is very different about the company. In this case, we're talking about a small medical disposables company that has not only been seriously growth-challenged, but also had to absorb significant gross margin pressures. Although patient value-oriented investors may want to consider Medical Action Industries for its margin improvement potential, investors should keep in mind that the market seldom give full credit to companies with weak internal growth prospects.

Essential Doesn't Always Mean Valuable

It's nearly impossible to perform a medical procedure without using MDCI's products (or those of its competitors). Through a...

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