American Medical Systems Holdings (NASDAQ: AMMD) provides
medical solutions designed to restore the pelvic health of men and women. It manufactures and markets surgical products to urologists, gynecologists, and urogynecologists for erectile restoration, benign prostatic hyperplasia, male urethral stricture, urinary and fecal incontinence, menorrhagia, and pelvic organ prolapse. Boston Scientific (NYSE: BSX) and Johnson & Johnson (NYSE: JNJ) are major competitors.
The stock lost ground at the end of October, on a slightly weaker than expected third quarter report. It has risen fifteen percent since that time, however, on word of insider buying, a pair of upgrades, in-line to upside fourth quarter guidance and the replacement of the CEO by the COO.
Shares are cycling through a positive trading channel. The price is currently near the base of that channel, where oversold CCI and Stochastic technical parameters suggest the potential for a rise back toward the top. Correspondence of the stock's 50-day moving average to the channel base backs the rebound notion.
Brokers recommend the shares with one "strong buy", four "buys" and four "holds". Analysts expect a 64% growth rate, through the next year. The AMMD PEG ratio (1.48), Price to Sales ratio (2.25), Price to Book ratio (3.07), Sales Growth rate (20.44%) and EPS Growth rate (80.00%) compare favorably with industry, sector and S&P 500 averages. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $11.89 and $22.18. A stop-loss of $11.85 looks good here. Note that the firm is expected to report Q4 results on February 14th.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.
Nuclear power is on the comeback trail
Apple backs AT&T in continuing spat with Verizon
Closing Bell: The recession is still over, still... do you feel it?
