More than 78 million baby boomers are currently living in the United States, according to recent census data. And of these millions of aging citizens, the oldest of the group - born in 1946 - is turning 64 this year.

This milestone moves a massive demographic one step closer to retirement - and a step closer to the section of the population that requires the most medical care.

It's impossible to deny that this country is getting older - the growing membership and lobbying power of the AARP is just one example. That's why we're turning our attention to smaller companies dedicated to treating and preventing the medical problems senior citizens commonly face.

This month, I let Penny Stock Fortunes readers in on a company that has developed a next-generation treatment for one of the top 10 leading causes of death for patients ages 65-74. This small medical company is great financial shape, and its growing revenue is leading the way toward profitability in the near future.

The company I'm talking about develops treatments for vascular diseases. The company's flagship product is a stent graft used to treat abdominal aortic aneurysms (AAA).

AAA occur when the walls of the aorta - the main artery coming out of the heart - begin to weaken. This weakness results in an enlargement of the aorta that is susceptible to rupture if the condition is left untreated. Approximately 1.7 million Americans are living with the condition. The patient mortality rate is approximately 75%, according to the company, which makes AAA a leading cause of death in the U.S.

The system looks to solve the problems AAA presents in a less-evasive way than traditional treatments. During the procedure, a sleeve-like device is inserted into the weakened and expanded aorta to help prevent it from rupturing. Clinical data claim the device provides significant benefits, including shorter hospital stays and less blood loss, over traditional treatments that require open surgery.


The Cash Is Beginning to Flow...

The company is not just the story of an intriguing medical treatment - it's also a solid play with consistently growing revenues and a solid balance sheet.

In the third quarter of 2009, the company reported $13.8 million in revenue. That's an increase of 5% sequentially and 47% compared with a year earlier. The company continues to benefit from its new line of products, which launched domestically in Summer 2009.

Guidance is also favorable. For the full fiscal year, we can expect revenue to come in above $50 million, a marked improvement over total 2008 revenues of approximately $37 million.

On top of these stellar numbers, we also find a strong balance sheet. The company has more than $21 million in cash and virtually no long-term debt.

All told, the latest PSF play is a company on the verge of turning the corner to profitability, as well. The company has reported smaller losses every quarter this fiscal year, culminating in an earnings loss of only $156,000 during the third quarter.

For those reasons and more, I recommended shares of this small medical stock to our Penny Stock Fortunes readers in the latest issue, which went out on December 14. Unfortunately - but fortunately for you - this play has yet to trigger at my target price. When it does it could mean a windfall for the investors who make it in...