Sharing Knowledge in Smallcaps

[KauaiPI]

Tim/Mike~SHPI.ob~good discussion guys (imHo <g>) and an interesting play!

SHPI Bid: 0.90 Ask: 0.91 Last: 0.90 ($): 0.07 Vol: 98,759

...at 8% below it 52wk high it is nice to see some strength in a seemingly solid company... this one goes on my watch list <g>

Even though it is an otcBB... thanks!
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Specialized Health Products Enters Agreement with B.Braun Medical S.A.S. for International Distribution of SafeStep(R) Huber Needle Set [1:00p ET November 19, 2007 (Business Wire)]

Specialized Health Products International, Inc. (OTCBB:SHPI), a leading developer and marketer of proprietary safety medical products, today announced that it has entered into an agreement with B.Braun Medical S.A.S. for the exclusive supply and distribution of SafeStep(R) Huber Needle Set in worldwide markets, excluding the United States and Canada. Under the terms of the agreement, Specialized Health Products will provide finished goods to B.Braun Medical for marketing under B.Braun's private label and branded as Surecan(R) SafeStep(R). The agreement is for an initial term of three years and includes minimum purchase requirements for the life of the agreement.

"While Specialized Health Products is the leader in the U.S. safety Huber needle market, expansion into international markets is an important and relatively untapped element of our growth strategy," commented Jeff Soinski, President and CEO of Specialized Health Products. "By aligning ourselves with B.Braun Medical, the European market leader in vascular access ports, which Huber needles are used to access, we believe that we are well-positioned to efficiently and effectively enter Europe and other key international markets with our fast-growing SafeStep(R) product line."

"Surecan(R) SafeStep(R) will help us grow our global market share in access ports, and contribute to the everyday safety of medical staff in the workplace, a pioneering area for the B.Braun group," said Jean-Michel Actis, Vice-President/Access Port Systems and Peripheral Vascular Systems. "Our partnership with Specialized Health Products is an enhancing factor for our innovation strategy to provide solutions whenever an implanted port system can be used to access a target area in the body with relation to blood and/or treatments."

About Specialized Health Products International, Inc.

Specialized Health Products International, Inc. is a leading developer, manufacturer and marketer of proprietary disposable medical products for clinician and patient safety. Specialized Health Products has developed multiple safety needle products based upon a broad intellectual property portfolio that applies to virtually all medical needles used today. Specialized Health Products is a market leader in safety Huber needles, with four complementary product offerings. The Company has licensed or supplies other products to leading global healthcare companies, including Covidien, Bard Access Systems, and BD Medical. For more information about Specialized Health Products, visit the Company's website at www.shpi.com.

About B.Braun Medical S.A.S.

B.Braun Medical S.A.S. is the French subsidiary of B.Braun Melsungen A.G., one of the world's leading companies in international healthcare, with a workforce of 33,000 and presence in more than 50 countries. With the motto "Sharing Expertise," the B.Braun Group pledge to use, share and broaden knowledge in dialogue with the customers, in order to provide integrated system solutions. B.Braun Medical S.A.S. has both local and global responsibilities: the latter cover access port systems, endovascular systems, woundcare, stomacare and continence care. For more information, visit the websites at www.bbraun.com and www.bbraun.fr.

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...in the time to paste the above they added another penny and another 50k in volume...

SHPI Bid: 0.90 Ask: 0.91 Last: 0.91 ($): 0.08 Vol: 147,498

Valuations seemed a little high at first glance?

Price/Earnings (TTM) 28.71x
Price/Sales (TTM) 3.34x
Price/Book (MRQ) 3.81x
Price/Cash Flow (TTM) 22.04

Yet because SHPI is in the Medical Equipment & Supplies industry and has positive earnings, the PE and Price to Book ratios are the most appropriate valuation measures. The Price to Sales ratio is less instructive than the PE since the company has positive earnings. Therefore SHPI seems fairly valued with a PE value of 28.7065 that is inline with the Medical Equipment & Supplies industry median of 25.14

SHPI has little or no debt and, thus, little financial risk

SHPI is one of the more profitable companies in the Medical Equipment & Supplies industry with a net margin of 11.32%. It's operating margin and net margin are among the strongest of any peer while it's gross margin is above the industry median

SHPI, like most of its peers, does not pay a dividend. Additionally, the average yield on those stocks in the Medical Equipment & Supplies industry that do pay dividends is 1.44%, weaker than the 2.25% yield offered by the S&P 500

EPS Growth (MRQ) 84.00% Actual
7.48% Industry Average

EPS Growth (TTM) 169.77% Actual
29.26% Industry Average

Revenue Growth (MRQ) 23.09% Actual
17.97% Industry Average

Revenue Growth (TTM) 52.11% Actual
22.46% Industry Average

Float 47.8M
Shares Outstanding 68.3M

Institutions Holding Shares 4
Held By Institutions (MRQ) 0.22%

SHPI is consistently one of the most efficient companies in the Medical Equipment & Supplies industry. With a Return on Assets, Revenues Per Employee, and Return on Equity of 11.46%, $561,709.70, and 14.64% respectively, they are among the most effective companies in the industry!

Indeed, enough to enthusiastically add it to my watch list <g>

Mike; any advice as to where you might recommend the pulling of the trigger? I am thinking of a starter position on a dip... do you have an opinion as to that likely hood?

TIA
GL & best!
kp
PS I still have to look over recent filings... any negatives I should factor in beyond the lawsuit outcome? I note you sold all your shares yet I am still liking what I am seeing at this stage?

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TA, Mike!