David Driscoll Atrion Corp ATRI-Q PAST TOP PICK Dec 15, 2016

A small cap medical device company, only US$400 million. They're good at what they do, but it's volatile. Use limit orders. He's owned this since $100/share, and has bought on pullbacks. They have new products in the pipe, but there was a slowdown in the supply chain recently. Dividend is growing by 10-15%. Organic revenue growth around 5%. Start with a half-position with the current toppy market.

It is a medical device company. It is potentially an acquisition target. It has had a decent run. It is an interesting company. It is not a buy but could be in a bit more of a sell off.

(A Top Pick Jul 29/19, Down 17%) They are in medical devices -- cardiac, eyes and fluid delivery devices. Elective surgeries have declined, but fluid delivery has continued to do well. They have been buying back shares around $630 per share, so there is good support here.

A leading supplier of medical devices to niche markets, like opthamology (i.e. IV tubes with clips). The share price has returned to 2017 levels, but they have new products coming out and elective surgery is coming back so demand will rise. Last week, they announced a 13% dividend increase. Strong free cash flow.

There are 7,000 publicly traded companies in the world, and their firm runs 20 different screens. The most important is free cash flow growth. With that, you can invest in R&D, do acquisitions, pay down debt, buy back shares, or pay a dividend. Atrion has very strong dividend increases. Small company, but really strong free cash flow characteristics.

(A Top Pick Aug 25/20, Up 7%) They suffered because of a lack of elective surgeries. The backlog of two to three years is going to start to put the earnings upwards. It is actually quite cheap where it stands now. The have a good history of free cash flow generation.

(A Top Pick Aug 25/20, Up 0%) Make niche products that larger companies don't make. Not many elective surgeries happening now, so stock down. Trying to buy as much as possible. Is a good long term hold.

no price target

They make medical supplies, like lens cases for contact lenses. Shares plunged this year due to high interest rates, so their customers didn't buy much from them. But when those customers finish working through their existing inventory, they will order from ATRI again. Trades at only 20x PE, and pay s a 2.5% dividend, which rising 10% annually except this year.

(A Top Pick Dec 19/23, Up 30%)

Recently, they announced they were being bought out at $460, which angers him between the stock is worth $600-800. He suspects the aging owners just wanted to retire and get out of the business, so they sold.

(A Top Pick Dec 19/23, Up 32%)

Bought out by another company in August. Asset-light company, where current assets were greater than total liabilities. This type of company is very flexible, allocating cash any way they want.