Jan 23, 2014
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The Best Healthcare Stock To Buy Now, January 2014

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Everyone Mathis Conner here with Conner management group today is Thursday, January 23, 2014 and this week within a look at the best healthcare stock to buy right now I hear the opening page we see that the company is in the medical instruments and supplies industry and we see its 12 month upside potential at 15.7% on to the second slide and we see that the name of his company's copayment next ticker symbol H a E was given the name is Haman net access HAE MON DTIC asked and you have the right on this company just hundred billion dollars is not a household name but we think it's interesting opportunity as will describe the following slide so Haman and its diminishing human antics Corporation engages in the design development manufacture and marketing of automated blood component collection devices and surgical blood salvage devices the United States and internationally it provides various plasma products including Pete PCS brand plasma collection equipment and consumables plasma collection containers and intravenous solutions swells information technology platforms for plasma customers to manage their donors operations and supply chain so basically human that is manufactures devices related to the collection of blood processing applied and also equipment related to delivery of public website is HAE 8H 80 MON ET ICS.com says triple W Haman and ask.com at their headquarters is in Braintree Massachusetts the company was founded in 1971 they have 3563 employees once again the ticker symbol is HAE there in healthcare sector their specific industry is medical instruments and supplies headaches revenues the last 12 months totaled $553 million still visible Smallman some some low was we look at the past there net income of the last 12 months totaled 30 $31 million and net cash from operation last 12 months totaled $94 million market capitalization Haman X right now set to $.15 billion on to their products and services slide we got a couple of pictures here we've got there logo spelling at Haman X a blow that's the scummy blood management company we has couple excerpts from the website one is in with their Haman X prize the reduce costs increase revenue with says our new donation product is introducing our new whole blood technologies µ and helping hospitals and has patient care and manage costs and United you got pictures of "woman writing on electronic tablet another technician on Dr. taking one's blood pressure and another looks like a bunch of doctors doing surgery I will send a picture of their corporate headquarters selected to three started rebuilding and Braintree Massachusetts and we also have pictures of the top two executives a picture of Brian Concannon their president and CEO and a picture of Peter Allen their president of global global plasma and going on to Summit metrics annual revenues the last 12 months for the again $953 million net income $31 million and the cash from operations of the last 12 months totaled $94 million taking a look at the operating margins headaches operating margins for 2012 was 21.9% after 2013 it's been tracking to be 26% so that's a nice increase an and margins and its related to and acquisition that they made and 2012 trailing P/E ratio right now is at 69.6 that is unusually high and then you sometimes see distortions like that be because of acquisitions and if you can is best try to find another source that it will restate that P/E ratio on in on apples apples basis but as it stands at the U the trailing P/E ratio set 69.6 to forward P/E ratios at 16.8 of the paid ratios at 1.5 note not not too high the prices sales at 2.3 also unnecessarily high and the price of books at 2.7 and the enterprise value to either.is at 14.6 Bevins this getting up a bit high that last one looking at the recent closing price for Haman excessively the company close at $41.70 52-week low the company was $37.71 and 52 week high was $45.90 so the price of the stock right now it's you know basically the middle between it 52-week high and the 52-week low of 20 day moving averages at $42.31 the 50 day moving averages at $41.94 and the 200 day moving averages at $41.27 so those moving averages are are pretty pretty tight so that they Tells you that there hasn't been too much movement as of late on in net net basis the average daily trading volume for Haman antics is 334,000 shares per day data for the company is 0.7 so it is a little less volatile to the market on the upside is the downside and the dividend yield is at 0% average dividend payout ratio 0% Haman antics doesn't pay dividends onto their stock price chart see that around city end of February Hemant X was around $40 and the beginning of May drop down to around $38 and then quickly rose to a high of nearly $46 and late July and then they had a precipitous drop from their $46 down to nearly $40 and this happened in late July or early August what happened during that period time the their earnings miss of any and that there is is quite a bit of pullback the stock bounced around little bit since late July and that it declined back down to around 3050 and early November and then increased again past $43 and its now around $42 so the company's had a little bit of some some upside downs but net net over a year ago it since around the the the same price and overall financial statement quality of Haman antics is very good the they do they do have some debt and but they do have have cash on on hand you know between 150 $200 million in net Morton takes care of the debt they have doodad term is as well as the in the working capital demands so the vast statements are are in good shape and as we mentioned earlier the operating margins are improving substantially increasing from 2122% to 26% and that that's significant a change and that's related to and acquisition and needed in August 2012 inquired a company called while they quietly transfuse the transmission business from Monica McCall Paul Corporation they been integrating it that into their operations additionally their sales over the past five years is relates acquisition but the annual rates of sales last five years of increased 11.5% per year their earnings are expected to increase over the next year and the they also made another acquisition of blues mamas acquisition of another company called and Morris medicals SL elects collection systems and that's expected to help their their margins increase a bit more so you know that are price private trans week we just saw overall the past year you would consider flat the other overall market right now were rarer still bears were starting to see some pullbacks from time to time different names has so you know there are their some near-term headwinds but we we tend to believe that literally some markets correct a very savvy they tend to correct quickly and you know past performance is no prediction of future but will see how it goes and those still feeling Haman antics is a good opportunity there the recent closing price was $41.70 our model C sees a 12 month price target of $40.25 so that gives this opportunity 12 month appreciation potential 15.7% so imminent this is a company we think he should take a closer look at and is in the healthcare industry we know that a lot of changes going on and it is not one of the bigger companies that we see some upside potential with this name versus a number of others so we feel that this is the best healthcare company to buy right now and all to our last slide if you haven't yet the sign up for our Saturday morning newsletter you can get by going to www.GMCstockpicks.com you be among the first to hear that great at best opportunities in the market are picks are result of our own self developed algorithms where we are reviewing and analyzing and ranking over 3500 stocks every week so we feel good about what we been doing were new in the block and we can show it was just how good we are so good to our website and sign up and that's all we have to this week take care and talk to set

 

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http://gmcstockpicks.com Proprietary algorithms at work. Click here for our free newsletter: http://goo.gl/APYNVJ . This is a review of an undervalued stock in the Healthcare Sector and Medical Instruments and Supplies Industry. Low priced stocks to buy. We do not look at penny stocks. Stock options are a safer bet than penny stocks.

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Comments to The Best Healthcare Stock To Buy Now, January 2014

  • The Best Healthcare Stock To Buy Now
    1-Year Potential: +15.7%
    Industry: Medical Instruments & Supplies

    The Best Stocks To Buy January 24, 2014 1:42 am Reply

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