BB's Stock Haven

[Rob_seller]

DSCI...target 95 cents by a reputed analyst...seee below!!!

Derma Sciences, Inc., is an integrated manufacturer, marketer and supplier of a complete line of products for wound and skin care. Products fall into five categories: Advanced Wound Care, Traditional Wound Care, Burn Care, Skin Care and Bathing, and Specialty Securement and Closure Devices. With three wholly owned and operated manufacturing facilities in St. Louis, Toronto, and China, the Company offers contract manufacturing services for OEM or private label products.

The Company's wound care products consist of sprays, ointments and dressings for the management of chronic non-healing skin ulcerations, surgical incisions and burns. The Company's specialty fastener products consist of sterile pressure sensitive adhesive wound closure strips, pressure sensitive adhesive catheter fasteners and tubular net dressings. Their general purpose and specialized skincare products consist of body washes, shampoos, an incontinent wash, a moisture barrier ointment, skin moisturizers and lotions, hand washes and sanitizers and a hard surface disinfectant.

The Company's products are used primarily in hospitals, nursing homes, and home health settings. The Company's products include wound dressings, moisturizing lotions, hand soaps, incontinence care products, disinfectants, wound closure strips, and catheter/tubing securement devices. The Company markets its products principally through independent distributors servicing the long-term care, home health and acute care markets in the United States and select international markets.


DSCI released its financials last evening...

In short ....Derma Sciences Inc (DSCI) reported Q2 results ended June 2006. Q2 Revenues were $7.39M; +6.64% vs yr-ago; BEATING revenue consensus by +15.83%. Q2 EPS was 1c; 0.00% vs yr-ago; BEATING earnings consensus by +150.00%.


Also a little para from the SEC filing Aug 14 2006:

Prospective Assessment

The Company’s objective is to continue to grow sales and gross profit in 2006. Beginning in 2005, the Company expanded its product development efforts. As a result of these efforts, the Company expects to launch two new products in late 2006 and additional new product launches are anticipated in 2007. The April 2006 acquisition of the Western Medical business is anticipated to have a positive impact on the Company’s U.S. business going forward. Growth of the Company’s private label business is anticipated to accelerate in 2006 as the existing business continues to grow and new customers are brought on board. Plans are in place to better leverage existing opportunities in the Company’s basic and advanced wound care lines in the U.S. by working more closely with several key existing and potential new customers to increase business. In Canada, the exclusive distribution agreement represents an opportunity for sales growth in the near future.

The Company plans to build upon its recent success in the area of product cost savings. Higher throughput and improved operational efficiencies are expected to lower the Company’s overall internal cost of manufacturing going forward. Plans are in place to bring the manufacture of the Company’s wound closure-fastener line in-house during 2006 at a savings versus existing third party sourced product costs. The Company also anticipates realizing savings when it begins sterilizing its China sourced products in China in the second half of 2006. Subject to commodity driven cotton prices and foreign exchange changes, which are outside of the Company’s control, the Company anticipates continuing to building on its successful relationships in China to keep its basic wound care costs competitive.

Outstanding Shares: 20 Million Only!!!....on 8/14/2006
Float as of July 2006: 12 Million Only


Valuation REPORT by TAGLICHBROTHERS

http://www.taglichbrothers.com/equityuniverse/companies/dermasci/dermasci-07102006.pdf

They gave it a speculative buy with target of 0.95 ....by next JULY....which means at more than 20% rise..

Acquisitions- Last quarter company acquired, for $6.5 million, certain assets (mainly accounts receivable and inventory) and assumed trade payables from Western Medical, Inc., a closely held manufacturer of specialty medical textile compression, support and protective dressings. Western’s products will be combined with Derma Sciences’ wound care line. The company estimates roughly $1 million

The acquisition will add roughly $6.6 million (Western’s 2005 revenue) to Derma Sciences’ annual revenue, contributing an estimated $4.5 million to its 2006 sales. The Western acquisition should support an improvement in profitability; Western’s 2005 gross margin was roughly 39%, well above Derma Sciences’ gross margin for that year. Western’s 2005 pre-tax margin was reported at 11%, also well above Derma Sciences’ for 2005. None of Western’s manufacturing or administrative infrastructure was included in the transaction; those functions are being absorbed by Derma Sciences. With effective integration, most of the gross profit on Western’s revenue could eventually drop down to the operating income line, significantly improving profitability.

This is not a recommendation to buy or sell securities. This message represents my personal opinion. Visit http://stockdoctor.blogspot.com for more of my picks.

My Target: get in before the crowd!!! Get out before the crowd!!!