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GIVN is highly speculative play for aggressive traders
Given Imaging, Ltd. (GIVN) is developing a non-invasive product line for diagnosing gastrointestinal track disorders, and while it gets five stars from Morningstar.com, it must be considered a very speculative bet that its products will pass muster with the risk averse and slow Food and Drug Administration. The company’s profile is here. Morningstar’s Debbie S. Wang is betting that the company has what it takes to bring its system to market in the U.S. and Japan as well as in Europe.
During the last 52 weeks, the stock has
plunged 48% to $16.95 despite a three-year earnings per share growth rate of 42% and a three-year sales growth rate of 16%, according to http://www.investors.com, the Investor’s Business daily web site. IBD gives the stock a composite rating based on its fundamentals and technical indicators of 79, or a B-. GIVN’s EPS ranking by IBD is 82, its relative strength a dismal 18, its group strength an A, its profitability a C and its accumulation/distribution a weak D+. The latter shows little interest in the stock by institutional investors.
As previously noted, GIVN looks technically strong on its charts. On point and figure charts, the stock has a $23 price objective. Morningstar estimates that Given Imaging’s fair value is $25, and it says consider buying it below $18.80 and selling at or above $32.50. GIVN October 08 calls indicate speculators in the very thinly traded options think the stock could touch $20 before the options expire in October. Bearish buyers of the October $17.50 puts think the stock could fall to about $14.60 before the options expire. Again, both the options and the stock are pretty thinly traded in relatively illiquid markets. GIVN’s options quotes are here. Given its speculative nature (pun intended), GIVN’s valuation ratios make the stock look very expensive. If you buy this one, you buy hopes and dreams for the company, speculators and patients. Reality is mostly to come. GIVN’s key statistics are here.
I don’t have a position in GIVN, but I reserve the right to buy in at anytime.
Warning: I’m not a professional stock picker, analyst or financial adviser. I strive for accuracy, but we’re all human and make mistakes. I take no responsibility for how others trade. Investigate before you speculate. For educational purposes only.