SwingTrade Member Forum

[MikeDDKing]

FONR is one of my favorites that I think could be a double or triple over the next year. FONR is the manufacturer of upright MRI scanners and also manages MRI offices. Here is why I like them:

1. They have turned around earnings and now have had 4 sequential profitable quarters. The turn around is due to both cost cutting and an increased focus in the management of MRI offices.

2. Earnings the past two quarters were $0.20/share and $0.24/share. I expect earnings going forward to be in the ballpark of $0.12/share/quarter. The drop is due to a financing that they just completed. Their forward PE based upon my estimates is in the ballpark of only 4!

3. My earnings estimate above could turn out to be quite low if they have a large number of MRI sales in a given quarter. Earnings at the $0.12/share level assume only moderate sales of MRI equipment.

4. Their balance sheet has been rapidly improving as they continue to report positive earnings and due to their recent financing. If it improves much more they might be able to replace their recent financing at a lower interest rate which would greatly increase earnings.

The FONR board is locate here:
http://investorshub.advfn.com/boards/board.aspx?board_id=689