When I last wrote on Medical Action Industries (NASDAQ:MDCI) in April, I thought the shares looked like an interesting idea given management's intention to pare away less profitable products and really focus on improving margins. Since then the shares are up more than 40% and the company has followed through on their stated plan of self-improvement. Between ongoing margin improvement and a debt refinancing that created valuable breathing room, I believe these shares are worth more now and still have around 20% upside.
Margins Are Coming Along
There was never much disagreement or dispute that Medical Action needed to do something about its margin structure. Procedure trays, medical textiles, and other assorted disposables have never been high-margin products,...
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