Atrion (ATRI) 2013 Review

Atrion Corp. develops products for medical applications including valves for infection control, fluid and medication delivery systems, silicon loops for retracting, and inflation devices for catheter and stent deployment.  The company earns a  15-20% return on equity and has grown its earnings and dividends 19-20% over the last five years.  That record should continue because:

(1) international expansion,

(2) emphasis on new product development

(3) stock buyback.

Negatives:

(1)    volatile raw material [oil] costs,

(2)    recent problems with the IRS on its R&D tax credit,

ATRI is rated B++ by Value Line, has no debt and its stock yields approximately 1.1%.

   Statistical Summary

                 Stock        Dividend         Payout      # Increases  

                   Yield      Growth Rate     Ratio        Since 2004

ATRI          1.1%          17                  14%              7

Ind Ave       1.7              8*                 29                NA 

                Debt/                      EPS Down       Net        Value Line

               Equity         ROE      Since 2004      Margin       Rating

ATRI          0%            19             0                38             B++

Ind Ave      19              12           NA                9            NA

  *most companies in ATRI’s industry don’t pay dividends

     Chart

            Note: ATRI stock made good progress off its March 2009 low, quickly surpassing the downtrend off its January 2008 high (red line) and the November 2008 trading high (green line).  Long term, ATRI has struggled of late to remain within its uptrend (straight blue lines) and may be transitioning into a trading range (purple lines).  The wiggly blue line is on balance volume.  The Aggressive Growth Portfolio owns a full position in ATRI and the stock is on the Aggressive Growth Buy List.  The lower boundary of its Sell Half Range is $342.

http://finance.yahoo.com/q?s=ATRI

4/13