…And the BEAT Goes On
|Written by GSCR Staff|
|Wednesday, 22 July 2015 05:38|
So what does the title from the 1979 the Whispers hit, or for our younger viewers, the cover for Will Smith’s, Miami, have to do with the stock market?
We think we have covered our bases on this in the last two editions of the Goldman Guide. Financial results, i.e. earnings, are crucial. Additionally, the huge reversal of the P/E ratio for NASDAQ 100 relative to the Russell 2000 means that some nice tailwinds ahead for small caps. Today we look at the small cap bellwether, healthcare technology. And the beat goes on.
BioTelemetry, Inc. (NASDAQ – BEAT - $11.29) is an up and comer on an impressive run as illustrated by the chart below. We featured the stock back in October of last year at $7.30. The 55% price increase is well above our original $9 target.
BEAT 1-Year Chart, 200-Day EMA
Here is a refresher. The Company is the leading wireless medical technology company focused on the delivery of health information to improve quality of life and reduce cost of care. The Company currently provides cardiac monitoring services, original equipment manufacturing with a primary focus on cardiac monitoring devices and centralized cardiac core laboratory services.
On May 6th the Company reported financial results for Q1 2015 and beat expectations for EPS ($0.06 actual vs. $0.02 estimate) and revenue of $43.4 million was up 17% from Q1 2014. The Company has now beaten EPS estimates four consecutive quarters. Additionally, forecasts for revenue in 2015 are for $185M representing an 11% increase over 2014. Finally, on the technical side, the short float remains relatively low at 3.6%.
We think BEAT is a hold for now as some of the deal flow has slowed from our prior coverage but overall metrics remain strong. It may be time to lock in profits with covered calls or protective puts. Our 2015 target is $13. And the BEAT goes on…
Have a great day!
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