Theragenics is a small cap surgical products manufacture and distributer of wound closure products, including sutures, needles, and other surgical products. I’m always attracted to companies with disposable products that are used often like razors,tissue,batteries,etc. Needles are used once and then disposed of. What makes theragenics attractive is its valuation. The company sells for 42 million on the open market yet has a tangible asset value of 65 million. The company is also free cash flow positive generating significant net income and depreciation allowances. Here is a small cap company selling below book value and profitable. The company currently sells at my valuation of 8x free cash flow. (net income+depreciation+amoritization-capital expenditures) I will continue to monitor TGX and will begin to accumulate if the multiple of free cash flow becomes more attractive or shares deviate even farther from liquidation value.

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