The timely stock with the greatest potential I've ever seen and low risk.
Tuesday, August 11, 2009 | gerald Johnson Is this Spam?I'm not an analyst....just a personal investor with a knack and some knowledge of what to look for in a great investment. I'm a mathematician;I wrote a program in the 60's for a fund that utilized the same techniques as IBD does today. I wrote probably the first program that compared stock strength to and index back in the 60's and categorized the results by industry.
I've recently discovered a new issue that has unbelievable possibilities and low risk. This conclusion comes solely from an analysis of revenue trends and associated earnings growth. Its explosive and makes sense considering what the company does.
My PICK FOR THE YEAR is Medidata Solutions. An IPO that came public in june. I'm not fully aware of all the rules of the 'quiet period' after a new issue is brought out...but analysts apparently can't promote during that period.
The firms that brought it do have it as an outperform or a buy. Its been positive since the day it came out trading 14 to 18 ish....recently hitting 19.7 before backing off under profit taking. I think profit takers are going to regret the decision after the earnings...report due thsday. Here's my thinking....again...this is not a professional analyst speaking...a mathematical view of probabilities speckled with some insight.
The company has reported revenue each quarter that
has increased by 3 million incrementally. Earnings have increased dynamically with each additional revenue increase. here is the rough numbers.
last 4 qtrs....each qtr an approcimate increase of 3 million.....earnings growth is unreal.
-.87....-.51....-.20...+.10 continuing the progression it could COULD be possible to see a +.40 this qtr...perhaps thats a max.....
Even if they report a +.20.....10 +.20 +.30 +.40 yields $1.00 by year end....a conservative pe of 20 for a compoany growing at that rate yields a $20 stock.....note...that is an extreme low viwpoint in my book. On the extreme high end...
.10+.40+.70+.1.00 is 2.20....at least a $45 issue and should be higher with a much higher pe for rapid growth.
The company offers a product that increases the efficiancy of research products in the biopharma research area. They signed on ROCHE and several other new customers in July.
All I can say Is....I don't think Ive ever seen anything so potentially dynamic and i've followed stocks for 40 years.
Strong industry/great new company/ sound balance sheet and potentially explosive earnings growth...which is what its all about.
Don't take my word now...but if they earn at least +.20 ....get on board for a decent return on your money in the next 6 months...maybe immediately. If they report +.30...jump on immediately...don't wait for it to back off...and stay with it....It might just be your best EVER.
I wish u luck...it takes some when your dealing with so much conflict of interest.
I sold the farm so u know my feelings and interest.
Check it out....hard to find any clouds.
MDSO is the symbol...reports on thursday...not long to wait. You can read about the co. on the internet at mdsol.com
