American Shared Hospital Services (AMS) provides turnkey technology solutions for advanced radiosurgical and radiation therapy services, explains Bill Mathews, editor of The Cheap Investor.
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AMS is the world leader in providing Gamma Knife radiosurgery equipment, a non-invasive treatment for malignant and benign brain tumors, vascular malformations and trigeminal neuralgia (facial pain).
The company also offers proton therapy, and the latest IGRT (Image Guided Radiation Therapy) and IMRT (Intensity Modulated Radiation Therapy) systems.
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This little-known healthcare stock has reported nice increases in revenues and earnings. It has a fair balance sheet with $2.9 million ($0.50 per share) in cash, a book value of $3.85 and a total debt of $24 million.
Insiders own 37% of the 5.7 million shares outstanding, and 20 institutions own 11% of the float. The negative factor is that the stock’s price is in a downward trend.
AMS is a profitable company with increasing revenues and earnings, yet it is selling near its low. With only 5.7 million shares outstanding, if AMS continues its growth trend, the stock could move up significantly. We think it has the potential to move 50% to 100% over the next couple of years.
