Company Website: http://www.spanamerica.com

We announced Tempur Pedic Intl Inc - TPX as one of our #1 picks for 2006 at $13.00. TPX today is up 177% to about $36 since our announcement. If you missed TPX this is your next opportunity to capitalize on the medical foam industry.

SPAN engages in manufacture, sale, and distribution of various polyurethane foam products for the medical and custom products markets in the U.S. and Canada.

SPAN's products include polyurethane foam mattress overlays; therapeutic support surfaces, including non-powered and powered mattresses; patient positioners; seating products; and skin care products. SPAN has a range of pressure management products, including Geo-Matt, PressureGuard, Geo-Mattress, SpanAids, and Isch-Dish, as well as markets the Selan line of skin care creams and lotions under a license agreement with PJ Noyes Company.

Plain in simple this stock is undervalued and has a lot of upside. The main thing I look at when researching a stock is the fundamentals.

Take a look at SPAN's Key Statistics- http://finance.yahoo.com/q/ks?s=SPAN

In my opinion, SPAN is trading a low P/E and with quarterly revenue growth at 21% and quarterly earnings growth at 72% this stock can easily go back up to $30. I think the market looks great right now and SPAN's first run in June was just the beginning. SPAN finally found it's bottom and support this month and looks ripe to start making it's way back up nice and slow. The last two candlesticks showed a bullish engulfing pattern and confirms to me that this is ready to make it's reversal.

Just recently, SPAN announced it's 71st consecutive quarterly dividend and represents a 33% increase over the dividend paid in the same fiscal 2006. SPAN gives gives a quarterly dividend of $0.08 per share.  This increased dividend reflects the company's strong financial performance to date in fiscal 2007 and the board's confidence in their future prospects.

SPAN is a profitable company that is growing year over year.

Take a look at their Income Statement and Balance sheet-

http://finance.yahoo.com/q/bs?s=SPAN&annual

http://finance.yahoo.com/q/is?s=SPAN&annual

Those are some good looking financials!

Now I know SPAN is thinly traded but I think it is a great long term value play that pays a good dividend and is a great target for acquisition. This is a small company that would add significantly to a bigger company.

What also caught my attention is the fact  Robert Olstein just bought a big position in SPAN. He recently bought 17,400 shares which is over $300,000 in cash. Robert A. Olstein is the Chairman and CIO of the Olstein Financial Alert Fund. He is considered an expert in corporate financial and reporting practices. Since 1995 his Fund has returned an annualized 16.75%! This is a very good indicator that SPAN has significant upside based on its fundamentals.

Olstein isn't the only one buying SPAN..... institution Bjurman, Barry & Associates accumulated another 108,000 shares of SPAN recently which put them above 5% ownership! Bjurman, Barry &Associates accumulated MIKR also before it was bought out by someone earlier this year! On 6/30/07 Morning Star rated Bjurman, Barry Fund 5 stars reflective of the fund's 5 year and 10 year returns! http://www.bjurmanbarry.com/

Maybe SPAN will be next to be bought out?