This column is for investors willing to take more risk and potentially receive more reward.  The stocks mentioned in this column are not recommended to buy or sell.  They're brought to your attention so you can investigate them further to determine if they fit your risk profile.  Most of the stocks will have less than $1 billion of market capitalization, have more volatility than other stocks, and oftentimes no earnings.  And some will have tremendous stories.

March 11, 2010 - Sirona Dental Systems, Inc. (SIRO-NASDAQ)together with its subsidiaries, manufactures and sells dental equipment for dentists worldwide. The company provides a range of products in four primary areas: dental CAD/CAM systems, imaging systems, treatment centers, and instruments.

Sirona Dental's imaging systems product line comprises a range of digital and film-based systems for diagnostic imaging in the dental practice. The company's treatment centers product line includes basic dentist chairs to chair-based units with integrated diagnostic, hygiene, and ergonomic functionalities, as well as specialist centers used in preventative treatment and for training purposes.

Its instruments product line includes handheld and power-operated handpieces for cavity preparation, endodontics, periodontology, and prophylaxis, as well as comprises multi function tips, supply and suction hoses, and care and hygiene systems for instrument preparation. The company distributes its products to dental practices, clinics, and laboratories through an international network of distributors. Sirona Dental Systems, Inc. was founded in 1882 and is headquartered in Long Island City, New York.

Here's a stock that saw its price drop to $8.50 at the end of 2008 and then bounced almost straight up for the next 15 months, hitting new all-time highs recently ($52.68 on March 9). The reason: earnings. They're jumping dramatically as the company continues to beat analysts' expectations.

While sales dipped in 2009 to $713.3 million (from $757.1 million in 2008), they rebounded the next year to $770.3 million. This year 13 analysts see $845.98 (an increase of 9.80%), then going to $908.86 million in 2012, up another 7.4%.

Earnings are even stronger. Last year they were $2.55 a share. This year, 13 analysts have a consensus estimate of $2.89, then predict $3.18 for 2012 (fiscal year ends September 30). Over the last 5 years, earnings had an average annual growth of 19.95%. For the next 5, analysts see 17.52%.

The dental equipment maker beat first quarter estimates by 18.50% (finished December 31) coming in with 96 cents a share, well above the predicted 81 cents. The reason: international sales improved above expectations, growing by 14% when compared to the same quarter last year. U.S. revenues increased by only 1%. Helping with the bottom line: cost cutting and a debt refinancing that added 7 cents to profits.

Management stated that there was increased demand for all of its business divisions in spite of the economic environment. Expect the trend to continue as global economies improve and consumers become more confident, spending more on their appearances. Another boost in sales should come from the International Dental Show this month as the company introduces new products.

Essential numbers: Price to sales ratio is 3.64. Price to book is 3.43. Book value is $15.15. Operating margin for the last 12 months was 16.30% while Profit margin is 12.79%. Return on equity was 12.73% and Return on assets was 4.96%. Total cash is $265.35 million for $4.79 a share. Current ratio is .97. Total debt is $367.82 million. Debt to equity is 43.65%. Beta is 1.53. There are 55.44 million shares outstanding with a Float of 37.96 million. Insiders own 26.07% of the stock. Institutions have 77.50% of the Float. There is no dividend.

Investors already love this stock. They've bid it higher by 39% in the last 52 weeks. And why not. When they see sales and earnings growth of this kind, they tend to put their money behind the company and hope to see more. The only problem here is valuation. Many of the ratios are getting stretch marks. If you like this one, it might be wise to watch and wait. There's a chance the stock will have some pullback if earnings aren't as expected. But then again, they may be better and propel the stock higher.