|Written by GSCR Staff|
|Tuesday, 28 October 2014 07:03|
We started the week off in the Guide by mentioning a few useful macroeconomic metrics in sector and stock picking.
Most of these metrics are debatable as far as what can be interpreted from them. One thing that is really not debatable is that the healthcare industry will continue to expand over the next several decades as people live longer and more wealth is built in emerging market economies all over the world. No economists will argue this point. Picking an undervalued stock can really payoff in the long run in your portfolio.
BioTelemetry, Inc. (NASDAQ – BEAT - $7.30) is an innovative healthcare firm that provides cardiac monitoring, cardiac monitoring device manufacturing, and cardiac core laboratory services across several brands. Recently, the Company announced that Cigna Corporation (NYSE – CI) reinstated coverage of BioTelemetry’s Mobile Cardiac Outpatient TelemetryTM service (MCOTTM). Additionally, Cardicore, the Company’s scientific consulting and data services subsidiary, is pursuing an aggressive organic growth and acquisition strategy evidenced by its purchase of RadCore Lab earlier this summer.
Below is the 1-year chart for BEAT which illustrates the stock is now trading above the 100-day EMA.
1 Year Chart for BEAT
(Source: Big Charts)
So why do we mention BEAT as a long term possibility then bring up a technical metric in the same breath. We think the signal indicates that an accumulation phase is imminent. As evidence, the stock has jumped 11% from a near term bottom of $6.56 on October 10th on relatively high volumes averaging over 200,000 shares traded per day. Finally, a 19% CAGR in top line revenue from 2013 forecast for this year and 2015 is another reason to get excited about BEAT.
BioTelemetry reports 3Q14 financial results on Thursday. Look for a pop if news is good. We think BEAT can climb to $9 by early 2015
Have a great day!
Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.
This Market Monitor blog was prepared for informational purposes only. Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research, which typically highlights small cap companies, and Goldman Opportunity Research, which features micro cap companies in a sponsored research format. Thus, the Select product reflects the Firm’s internally generated stock ideas while the Opportunity product reflects sponsored research reports.
Goldman Small Cap Research is not affiliated in any way with Goldman Sachs & Co.
It is important to note that while we may track performance separately, we utilize the same coverage criteria in determining coverage of all stocks in both research formats. Please view the company’s individual disclosures for each engagement, which can be found in each company-specific report. All information contained in this blog, newsletter and in our reports were provided by the Companies or generated from our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.
The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research blog, report, note, or newsletter is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.
This blog does not take into account the investment objectives, financial situation, or particular needs of any particular person. This blog does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA or with any state securities regulatory authority.
ALL INFORMATION IN THIS BLOG, REPORT OR NEWSLETTER IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.
For more information, visit our Disclaimer: www.goldmanresearch.com