It's Time To Step Into OSI Syst

Discussion in 'Stocks' started by stonedinvestor, Dec 20, 2006.

  1. OSI Systems, Inc. recently announced that its Security Division, Rapiscan Systems, has received multiple contracts totaling approximately $10 million for its recently introduced Rapiscan MVXR5000 Inline Automated Hold Baggage Screening System ("HBS") for checked baggage. The orders were received from several major undisclosed international airports.

    Mr. Deepak Chopra, CEO of OSI Systems, stated, "The international HBS market has been dominated in the past by L-3 Communications and Smiths. Today's announcement is a major milestone for the Company as these orders were received from key international airports who ordered multiple systems. This is a clear validation of our technology platform and ability to leverage that platform in entering this new market. These installations will act as reference sites to support our ongoing marketing and sales efforts."

    The Company earlier this year announced the introduction of its first product into the HBS market, the Rapiscan MVXR5000. The international market for X-ray based HBS Systems traditionally has been shared between L-3 Communications Holdings, Inc. and Smiths Heimann, a division of Smiths Group, PLC. The Company estimates that the aviation market for Inline HBS systems, outside of the U.S., is several hundred systems with the majority of the units coming due for replacement over the next three years.

    The Rapiscan MVXR5000 is designed specifically for the aviation industry for the inspection of checked baggage. The system provides automated explosive detection with low false alarm rates by utilizing multi-view (5-view) high quality dual-energy X-ray images with high class image quality. The systems can be installed inline into the existing baggage conveyor infrastructure operating at speeds up to 1,800 bags per hour. The high throughput and automatic detection is coupled with the systems advanced network capabilities to allow near-real time suspicious bag analysis to be completed by a networked group of remote operators and for images to be then transmitted to the manual inspection stations as a search aid. The Rapiscan MVXR5000 has multiple layers of network redundancy designed to ensure the highest levels of system availability and fail-safe operation for the most demanding aviation security environments.

    This was a nice press release and the exact news the stonedinvestor has been waiting for. OSIS can now compete with the big boys which means they are more likely to get bought out by them. Recently Mark Hulbert included this small cap stock as one of his ideas for a January effect stock. To qualify OSIS had to be recommended for purchase by at least three of the newsletters the HFD monitors:

    Backlog is at an all time high, 07 guidance has been reiterated; rev expected to be up 18%-20% yoy. In the most recent quarter the rev breakdown was 52% growth for the security division and a 6% decline for healthcare decision. New news for that laggard healthcare side is they launched its advanced anesthesia system, BleaseSirius(TM) and UltraviewSL Perioperative Monitoring Suite in the North American market. OSI Systems CEO, Mr. Deepak Chopra, said, "We are excited to be introducing the advanced BleaseSirius(TM) anesthesia system into the North American market, the largest market for anesthesia systems in the world. This is the first Blease anesthesia system to be available in the North American market after a successful sixty year history of developing and selling anesthesia systems internationally. We intend to utilize our strong existing infrastructure to make the launch a success."

    So folks an uptick can be expected in the healthcare division this next qtr- management is excited by the uptake of the new anesthesia system- the homeland Security side is ripping along & we can be guaranteed a great series of earnings reports coming up. Morgan Keegan just met with the new CFO and reports back that this guy has clout and he knows how to improve the bottom line. Read: Maybe they fix up and sell the health-side of the company and become a pure play small cap security play! Shares $3 above book value folks! Break up value for the Co pegged at $49.

    OSIS sells for $20. Sometimes the market gives you gifts. Take advantage of it. Often I'm asked for one stock that will double- I believe OSI Systems to be that stock.~ stoney
  2. Hi UPDATE*

    > OSI Systems preannounced a solid Dec qtr this morning; focus now turns to controlling expenses - Roth notes that OSI provided preliminary results for the Dec qtr this morning, and announced restructuring plans expected to significantly reduce expenses heading into FY08. They believe success in controlling expenses will remove the most significant overhang on the stock, and given catalysts including product introductions by Spacelabs, international traction of its H.B.S offering, and an improving domestic environment for security, they continue to believe shares of OSIS remain undervalued. OSIS +$1.65 today.
  3. Update 2*

    >Todays move on OSIS breaks it out to a new 10 month high. Across 23.35 or so would be a signifiant breakout.

  4. oh baby!

    OSIS) OSI Systems - Jefferies raises their F2008 EPS estimates by almost 40%, raises their price target to $30 from $24, and strongly reiterating their Buy rating following Q2 earnings. They foresee a multi-year margin expansion story unfolding that could drive quite explosive EPS growth. Longer-term, the firm thinks ramping homeland security opportunities could provide sustainable growth.

    >> I'd like to take a moment and reflect on the little plants that I have seeded this site with. Is anyone noticing a common thread? Well, for one you are always ahead of the game- often too much so- and secondly we don't look for small moves do we?
  5. kerodg


    Hey stonedinvestor........

    I see where OSIS estimate for Q-'07 on Feb. 07 is -$1.35

    see ya.....kerdog
  6. Well Folks we have to talk.
    > OSIS surges $1.60 today to new 5 year highs & approaching its all time highs near 29. Jumped nearly $2 in the last 45 min...

    At last check we were at $23 or so and had gotten a $30 PT (1 year I'm sure) We are now near $29.
    With all this late day volume I'm a thinking there's a big contract announcement around the corner. But greed is a fickle animal. I started this thread predicting a DOUBLE for OSIS THIS YEAR. IT WAS stonedinvesting's TOP PICK for THIS YEAR. But it's only March and we know a correction will come between now and the end of the year-- this leaves us in a difficult investing place--
    Take the $10 or hold out for $15 or $20??????
  7. Cash settlement drives shares.... BUT

    OSIS)Roth notes recent developments suggest positive trends continue for OSIS that should drive performance into FY08 and beyond. While shares have appreciated 31% in CY07, firm continues to believe shares remain undervalued. With catalysts including recently implemented cost controls, product introductions by Spacelabs, international traction of its HBS offering, and an improving domestic environment for security, firm remains positive on shares of OSIS. It is firm's understanding that the next step is for L-3 to a) accept the judgment, b) file an appeal, or c) negotiate a settlement. Firm notes that L-3 took a $129 mln charge in the March 2006 quarter based on the original ruling. While they believe an award is likely, given uncertainty in timing a decision firm has not included the impact of any settlement in their valuation.