Kinetic Concepts Inc. (KCI)

[grantg2]

Kinetic Concepts has several things

going forward thru 2007 that should keep the growth of market share and the PPS on the rise.

International Expansion:

The beginning of clinical trials in Japan has commenced. Later in the year there are plans to aggressively enter the markets in China and India! Huge potential to grow in those markets... may not follow 25% compounded growth rate in US markets during the last 7 years... but entering those markets should provide years of growth to come.

New Products:

The new CEO has prioritized R & D expenditures to develop new foams for use wth the VAC product line... these foams would contain additive medications that expand the uses and improve the efficacy.

New FDA Approvals:

Recently the FDA approves KCI's ActiVAC and InfoVAC systems for in-home and acute care applications. The company continues to expand research into new applications demonstrating broader uses for the products in treating wounds.

Strategic Acquisitions:

Although there have been no details announced, management has been hinting that there are expansion plans being considered that would also grow KCI revenues.

The foundation for strong growth for years to come is being laid... as revenues and earnings increase, PPS will also continue to increase!

JMO...