Idiot quant analysis from The Street re: CVD:
[No mention of pending buyout, especially when comparing the current price to last year's price or when commenting on its price stability. Any fluctuations in price would reflect that of LabCorp (LH), as it's a cash plus some LabCorp stock buyout. LH has risen 4-5% in the last week.)
Watch Out: Barbarians At The Gate For Covance (CVD)
thestreet.com
"Trade-Ideas LLC identified Covance ( CVD) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate...
"..Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher...
"... TheStreet Quant Ratings rates Covance as a buy. [Why not LabCorp?] The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
"Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. [and that the pending buyout largely fixes the stock price.] Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year... [See previous comment.]" |
