Sign Up NowThis Month's Tiny Gems - January 2011

Arrhythmia Research Technology Inc. (AMEX: HRT)
Gainsco Inc. (AMEX: GAN)
Vicon Industries, Inc. (AMEX: VII)

 

 

 

Arrhythmia Research Technology Inc. (AMEX: HRT)

 

Founded nearly three decades ago, Arrhythmia Research Technology Inc. (AMEX: HRT) has a broad portfolio of solutions and products that has been continually expanded over the years through the strategic acquisition and deployment of world class technologies, people and processes. The company has uniquely positioned itself to solve the design and manufacturing challenges virtually every industry's design engineers and scientists face.

 

Through its wholly owned subsidiary Micron Products, Inc., ART manufactures silver plated and non-silver plated conductive resin sensors and distributes metal snaps used in the manufacture of disposable ECG, EEG, EMS and TENS electrodes. Micron's MIT division manufactures custom injection molded products for medical, electronic, industrial and consumer applications, and provides high end mold design, manufacturing and precision machining for various industries.

 

ART's other subsidiary, RMDDx Corp., is a development stage organization dedicated to the development and commercialization of medical devices, medical information technology, medical diagnostics and remote patient monitoring through wireless, internet and telecommunication technologies. The company also provides proprietary signal-averaging electrocardiography (SAECG) software used to detect potentially lethal heart arrhythmias.

 

Last month ART announced its financial results for the third quarter ended September 30, 2010. Revenue generated during the period equaled $5,888,000 and net income totaled $120,000, compared to total revenue of $5,457,000 and net income of $108,000 for the same quarter of 2009. For the nine month period ended September 30, 2010, total revenue increased by 11% while net income increased by 65% as compared to the same period in 2009.

 

 

 

Gainsco Inc. (AMEX: GAN)

 

Through its subsidiaries, Gainsco Inc. (AMEX: GAN) focuses its efforts on the property and casualty insurance business, with an emphasis on the nonstandard personal automobile market. Writing on classes of risks which are not generally insured by many of the standard companies, the company markets its nonstandard personal auto line of insurance on an admitted basis through independent agency locations in Arizona, Florida, Georgia, Nevada, New Mexico, South Carolina, Texas and one general agency in California.

 

Nonstandard personal auto insurance is usually purchased by drivers who do not meet an insurance company's "standard" or "preferred" underwriting criteria. These drivers generally pay higher premiums than for standard policies. Data published by A.M. Best indicates that approximately 48% of the entire U.S. nonstandard personal auto market of nonstandard personal auto insurance was written in the states currently being served by Gainsco in 2008.

 

Considered to be trading at undervalued levels, Gainsco's stock trades at a P/E of 5.1, P/S of 0.23 and Price/Book of 0.58. In the most recently reported quarter, net income increased dramatically from $0.02, or $0.04 per common share, to $3.9 million, or $0.82 per common share. Also notable, insiders hold 72.71% of the shares outstanding, closely aligning management's interests with shareholders.

 

 

 

Vicon Industries, Inc. (AMEX: VII)

 

Vicon Industries, Inc. (AMEX: VII) is an industry-leading designer, manufacturer and marketer of video systems and components used for security, surveillance, safety and control purposes. Unrivalled in experience developing video surveillance technologies, the company's systems are utilized worldwide in high-profile, enterprise-scale installations by a diverse range of customers across the globe.

 

With its main headquarters in New York and operate offices in the U.K., Germany and Israel, Vicon oversees its worldwide operations. The company's products are mainly used by end-users as a crime deterrent, for visual documentation, observing inaccessible or hazardous areas, increasing safety, managing control systems and improving the efficiency and effectiveness of personnel.

 

In order to provide its customers with the latest and best technological solutions available for security systems, Vicon has partnered with other security and video companies whose products complement its video surveillance offerings. The company is also continually seeking out other opportunities for strategic partnership with companies who meet its criteria of product excellence, innovation and value.

 

Trading significantly below its book value, Vicon has a solid balance sheet with $43.4 million in total assets, $14.30 million of which consists of cash and equivalents, and $10.15 million in total liabilities. Insiders hold 45.08% of the shares outstanding while institutions hold 23.30%. With such a solid position in the video surveillance market and trading at a discounted price based on its fundamental value, Vicon is worthy of investors' further due diligence.