|Written by GSCR Staff|
|Tuesday, 28 October 2014 06:03|
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.
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