Thursday, November 19, 2009

Fonar Corporation (FONR) - A Play On MRI's and Sitting Down

Young Finance Guy's Speculative Picks - 

  • Fonar Corp; Ticker Symbol FONR
Fonar is a medical company in both the Physician management and servicing industry as well as (and more so) the medical equipment industry. More specifically Fonar creates, develops, and sells MRI equipment. Not just any MRI equipment but cutting edge, innovative, and better performing MRI scanners such as their patented Upright MRI.

First of all so we are all on the same level an; MRI is Magnetic Resonance Imagery. Typically when one thinks of an MRI one thinks about that big machine that the patient while laying down on a mechanical stretcher is slowly consumed by a room wide monster of a machine which looks more like an alien regeneration machine from some marvel comic writer's nightmare. It's scary looking, and the fact that all the doctors and technicians take cover behind some sort of bullet proof glass in a separate room for viewing the patient from a safe distance does not help the situation.

Fonar has a new and innovative product and solution they call it the Upright MRI.

What is the Upright MRI?

Well in a nut shell it is a MRI that allows the patient to set down comfortably and in the company of people while getting an MRI. The patient can even watch TV! Though these are the aspects that really stood out to me the real value is apparently in the results and quality of results that the Upright MRI produces compared to the traditional MRI Machine.

Stock Specs and Quote

price per share $2.35

Share Statistics
Average Volume (3 month)3:96,921.2
Average Volume (10 day)3:15,387.5
Shares Outstanding5:5.29M
% Held by Insiders1:2.51%
% Held by Institutions1:7.20%
Shares Short (as of 27-Oct-09)3:66.05K
Short Ratio (as of 27-Oct-09)3:1.2
Short % of Float (as of 27-Oct-09)3:1.30%
Shares Short (prior month)3:66.03K
Dividends & Splits
Dividend Rate4:N/A

Ex-Dividend Date4:18-Mar-99
Last Split Factor (new per old)2:1:25
Last Split Date3:17-Apr-07

Why I Say Buy

I am not a financial adviser nor an expert of anything medical. I am however a share holder (though rather small).

These guys have a product that is very expensive. These guys have a product that is better performing and much more patient friendly. These guys have a product that sells but on a very limited basis due to price and market demand. If this product catches on and becomes half a standard then this stock will let you retire with even a modest investment. It will explode!

This is why I say buy. There is little downside when compared to the upside. Also the head honcho and inventor of the MRI and the Upright MRI are all one and the same. That's right, a gentlemen named Raymond V Damadian who as recently as 2007 was awarded the Inventor Of The Year Award, Raymond is the guy behind this and from what I have seen thus far he is absolutely dedicated and on a mission to make this thing work and to do so under the Fonar name.

Earlier in the year he turned down a 5 dollars per share offer and this came at a time when the stock was half or so of what it is today.

I am sold.

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