Sign Up NowThis Month's Tiny Gems - July 2015

CAS Medical Systems, Inc. (CASM)
ROI Land Investments Ltd. (ROII)
Trans-Lux Corp. (TNLX)

 

 

 

CAS Medical Systems, Inc. (CASM)

 

CAS Medical Systems, Inc. (CASM) ("CASMED") is a leading developer of innovative, non-invasive vital signs monitoring technologies and products that deliver accurate, reliable patient data. With a reputation for consistently marketing superior quality products that utilize the industry's most advanced technology, the company has remained a trusted resource for doctors and clinicians around the globe for more than three decades. CASMED's product portfolio, which it offers to hospitals, emergency medical services, home care providers and original equipment manufacturers, includes blood pressure measurement technology, vital signs monitoring technology, neonatal intensive care supplies and its flagship FORE-SIGHT® absolute tissue oximeters.

 

In the first quarter of 2015, CASMED highlighted the market potential of its proprietary FORE-SIGHT offerings by recording a 19 percent year-over-year increase in sales for the product line, including a 17 percent increase in disposable sensor sales. These results marked the 20th consecutive quarter of double-digit growth for the company's FORE-SIGHT meters, as well as the first time in its history that more than 50 percent of total revenues were attributed to its flagship brand.

 

"This is the first quarter in which revenues from FORE-SIGHT sensors represented more than 50 percent of total revenues, which is a significant milestone and reflective of the incredible transition we have made over the past few years from a capital equipment business to a disposables company," Thomas M. Patton, president and chief executive officer of CASMED, stated in a news release. "This transition has been a key driver in improving gross margin, which increased by approximately 500 basis points in the first quarter over the prior year."

 

By rapidly expanding its presence in the disposable medical supplies market, CASMED should be in a strong position to continue posting improved financial results moving forward. According to a report by Becker's ASC Review, healthcare organizations will continue turning to disposables in the years to come following heightened pressure from federal and accreditation organizations to prevent patient harm. As a result, domestic demand for disposable medical supplies is expected to grow by more than four percent annually, climbing above $49 billion by 2018.

 

In the months to come, look for CASMED to build on its recent market progress through the impending launch of its FORE-SIGHT ELITE product for pediatric and neonatal patients. Through this release, in addition to planned expansion of its existing sales force, the company will be in a formidable position to continue pushing toward profitability in future quarters. For prospective shareholders, these results could provide a formidable platform upon which CASMED could promote sustainable returns in the future.

 

 

ROI Land Investments Ltd. (ROII)

 

ROI Land Investments Ltd. (ROII) is a diversified real estate investment company specializing in land development. The company's primary focus is on acquiring vacant properties in areas that are free from zoning restrictions. Following purchase, ROII obtains the necessary permits, outsources the development of infrastructure and sells subdivided land units to large regional developers for a profit.

 

In June, the company took a significant step toward continued growth through the acquisition of its first development target in the United States. The property encompasses 220 acres of land and water rights in Evans, Colorado, on which ROII plans to develop residential housing. Beginning in 2016, the company will initiate development of approximately 1,200 lots featuring a mix of housing units – including single family homes, town homes, duplexes, triplexes and condos.

 

"The development opportunity in Evans is consistent with ROII's strategy to target markets that have a strong economic outlook and a shortage of high-quality, affordable housing," Philippe Germain, president of ROII, stated in a news release. "By taking advantage of the opportunity to acquire land at a price below its appraised value, we expect to generate a significant return for shareholders, while delivering sought after quality housing."

 

Upon completion of its Colorado project, ROII will be in a formidable position to capitalize on the area's sustained job growth, which, according to the Department of Labor, has been among the strongest in the nation. In July, the company demonstrated the marketability of its project by announcing a binding agreement to sell approximately one-third of the project to a well-respected local construction firm following development.

 

ROII has also made strides toward international growth in recent weeks. Through an agreement with Sobha Hartland, a multinational, multi-product real estate developer, the company cleared the way to acquire three prime plots of land in an upcoming $4 billion mixed-use project located in the heart of Dubai. This deal marks ROII's first venture in the Middle East, effectively broadening the company's geographic reach and promoting strong financial growth in the future.

 

 

 

Trans-Lux Corp. (TNLX)

 

Trans-Lux Corp. (TNLX) is a leading designer and manufacturer of digital display solutions. The company's TL Vision digital video displays and TL Energy LED lighting solutions are marketed to a variety of industries in which digital signage is a viable business tool – including the financial, sports and entertainment, gaming, education, government and commercial markets. Offering a comprehensive collection of LED large screen systems, LCD flat panel displays, data walls and scoreboards, Trans-Lux is able to effectively provide digital display products for virtually every venue.

 

Since being founded in 1920, Trans-Lux has developed a formidable position in the evolving electronic display market. Within the last year, the company has successfully leveraged this position to provide dynamic displays to a collection of clients in high-profile venues, such as Soldier Field in Chicago and Times Square in New York. In particular, Trans-Lux's three phase project in New York is expected to account for more than $2.5 million in total revenue.

 

"Trans-Lux was first to bring LED technology to the Times Square area, and we continue to deliver new and innovative LED display and lighting solutions to help maintain its reputation as the crossroads of the world," J. M. Allain, president and chief executive officer of Trans-Lux, stated in a news release. "Our TL Vision LED displays provide a highly visible and effective media platform to engage and drive customer traffic with HD quality imagery and messaging."

 

In the years to come, the digital signage industry is expected to experience accelerated growth, putting Trans-Lux into a strong strategic position to expand its current market share. According to a report by InfoTrends, businesses that utilize digital signage realize a 31.7 percent increase in overall sales. Likewise, an impressive 63 percent of people reported that digital signage is effective in catching their attention.

 

In the first quarter of 2015, Trans-Lux provided a glimpse of its growth potential by recording strong financial results, achieving a quarter-of-quarter increase in gross profit of nearly 50 percent. The company built on this progress in June by announcing the opening of a new design and production facility in Shenzhen, China, as well as the formation of new technology partnerships with two of the world's leading LED suppliers.