I have been tracking GreatBatch (GB) since late September after a InvestorVillage poster friend of mine (Denis Cowley) turned me on the the chart. His technicals were sending him signals, but mine were not so we decided to watch and wait, looking for a signal that the stock would turn. Maybe Denis's batteries were not working......Anyway, I joke with friends that if I don't get serious about exercise that I may be one steak dinner away from a heart attack. This is where GB comes in. Greatbatch is a developer and manufacturer of power sources, wet tantalum capacitors and precision engineered components used in implantable medical devices.
They basically make things that power devices that doctors implant. How is that for technical? On the positive side, they have clients such as Boston Scientific, Medtronic, and St. Jude that have shown great earnings growth recently that I am hoping their sucess will flow through to GB. On the negative side, GB warned in late September about a 2007 earnings shortfall and the stock received a number of downgrades after the warning.
They had a few upgrades last week on valuation, but these announcements came on Thursday during the 300+ point DJI decline. They also bought two small companies last week (both asset purchases) and they report earnings for Q3 on Monday night. They have a lot going on!
Technically, the stock is very oversold and I believe that most of the bad news is already out there. They gave a range for earnings guidance and I think that their numbers may be in the upper part of the range providing a little bounce and a bottom to the six week slide in their stock price. Here is their chart:
The smart move is to continue to research this stock and wait for earnings and the conference call, looking for the confirmation in the stock price on Tuesday. The gambler in me is also telling me to buy a marker ahead of earnings tomorrow. I don't know which way I will go at this point, but this stock is now at least on my watch list.
I also figure, with my lifestyle, that I ought to bone up on these devices. It just might save my life some day.
2 comments:
Hi Sneak
GRMN is testing my nerves.
Actually, the combination of the current down trend makes it worse.
But I'm still confident that this should all bounce back before year end.
Also, I thought that I would try your Blog.
Best Regards
R.S.
Hey Russell:
Thanks for commenting. GRMN is testing us all. It is great to respond to you the following day as the stock is finally catching a bid. Best to you and don't be a stranger.
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