Name: Cantel Medical Corp. (CMN)
Web Site: http://www.cantelmedical.com
Brief Description: Cantel Medical Corp. provides infection prevention and control products for the healthcare market. Its Dialysis segment includes disinfection/sterilization reprocessing equipment, sterilants, supplies, and concentrates for hemodialysis treatment of patients with acute kidney failure or chronic kidney failure, as well as offers technical maintenance services. The company’s Dental segment comprises single-use infection control products used in the dental market, such as face masks, patient towels and bibs, self-sealing sterilization pouches, tray covers, sterilization packaging accessories, surface barriers, disinfectants and deodorizers, germicidal wipes, hand care products, gloves, sponges, cotton products, cups, needles and syringes, scalpels and blades, and saliva evacuators and ejectors. Its Endoscopy and Surgical segment includes diagnostic and therapeutic medical equipment, such as endoscopes, surgical equipment, and related accessories. The company’s Endoscope Reprocessing segment consists of endoscope disinfection equipment, and related accessories and supplies. Its Water Purification and Filtration segment includes water purification equipment design and manufacturing, project management, installation, maintenance, deionization, and mixing systems, as well as hollow fiber filter devices and ancillary products for fluid and separation applications for the medical, pharmaceutical, biotechnology, research, beverage, and semiconductor industries. In addition, the company offers microscopes, image analysis hardware and related accessories; and industrial technology equipment, such as borescopes, fiberscopes, and video image scopes. It also offers specialized packaging for the safe transport of infectious and biological specimens, and compliance training services. Cantel Medical has operations in Singapore, Taiwan, China, the Netherlands, the United Kingdom, and the United States. The company was founded in 1963 and is based in Little Falls, New Jersey.

09/29/06 - Downgraded to Neutral rating.

ANALYST OPINION: We downgrade Cantel Medical Corp. (CMN) to Neutral rating on termination of operations of its Carsen subsidiary on July 31, 2006. This termination will have a major impact on CMN's earnings since Carsen accounted for about one quarter of consolidated net sales and almost a half of consolidated operating income during 9moFY06.

INVESTMENT PERFORMANCE: CMN's stock price declined by 23.0% since we had assigned a Buy rating in July 25, 2005. [Investment Research Report]

07/25/05 - Initiated with Buy rating.

Contract: research@gempick.com