It was easy to be skeptical when CNS
Well, the Andy Warhol clock has counted down the company's 15 minutes of fame -- over and over again. It's clear that CNS and its Breathe Rights are no flukes. They are both here to stay.
Last night, the company wrapped up its fiscal 2004 year in solid fashion, topping its earlier projections. On the year, CNS saw sales grow by 10%, while higher operating margins produced a 32% uptick in operating profits.
Matt Richey recommended the stock last year in our Hidden Gems newsletter and he's not the only Fool that's smitten. And it bears pointing out that CNS is no longer a one-product company. Beyond expanding its Breathe Right line, it also makes other compound-word enhancers like FiberChoice chewable tablets and Vapor Shot vaporizers.
No, this isn't the kind of merchandise that's going to rocket the company past consumer heavies like Procter & Gamble
An abrupt end to the flu season had the company waxing pessimistic earlier this year, but CNS pulled through 2004 fairly well, and management sees continued improvement through fiscal 2005. Guiding investors to profit growth between 7% and 16% with sales growing in the mid-single digits, CNS has its sights on widening margins further in the year that lies ahead.
The stock closed yesterday at just 16 times its median profit target. That leaves some valuation upside for a company that is apparently doing a few more things right than just breathing.
Longtime Fool contributor Rick Munarriz thinks the only thing that would look funnier than donning a nasal strip over the bridge of your nose would be missing out on investing in a promising company that has passed the laugh test. Then again, he must look pretty funny because he does not own shares in any of the companies mentioned in this story.