It seems as if everything is booming this year, although a lot of us probably feel the complete opposite! I feel that the healthcare sector is often very overlooked. Sure everyone knows about where Pfizer, or Astrazenca is heading, but not many pay close attention to the other small, mid- and large cap biotech and healthcare stocks that are making swift moves.
I personally use hundreds of different resources when browsing for lesser-known value investing ideas, though I do find the Finviz stock screener to be one of the best, as well as Prodigio RTS. After I locate a group of stocks, I typically create a pivot chart as well as heat map so I can keep daily updates relevant to them. It gets quite challenging following so many—though the Fool Watch list makes it very easy for me to keep track of all of the recent news in circulation.
This is what my current set-up looks; pretty complicated, and that’s only one screen! I am constantly searching for companies that don’t have a lot of current daily news releases in order to identify catalysts with low volume. I look for this so that when the company finally arrives to the time where a catalyst occurs, I make the most on my contracts or shares. I personally love long-term value plays, such as BioTelemetry (NASDAQ: ), formerly known as CardioNet.
When selecting companies, I typically try to find something that shows or speculates for a promising future. CryoLife (NYSE: ) is a small-cap medical devices company that has little to no coverage. This company is well known in the European Union for its BioGlue and no-stent porcine heart valves, which are both mainly distributed in the European community. This company has grown fantastically throughout 2013, showing a yearly performance of 84.93%, as well as a recently updated dividend of 1.1%. Current shares of CryoLife are $10.43 and growing rapidly. This company is a strong choice considering its dividend value; the company plans on releasing dividends each quarter, depending on outstanding shares. CryoLife is attempting to show shareholders their loyalty, as well as make this an attractive long-term investment. Dividends for fourth quarter will be distributed on December 20, and the ex-dividend date is December 11. CryoLife is rated four stars by Motley Fool caps, as well as a Zacks Investment Research #1 buy recommendation.
Medical device companies are typically very unique investments, and most of them are progressing very well. They’re also an affordable option for those of you looking to take up a large share count in a specific growing company. The healthcare field has lots of room to grow, and companies like CryoLife,Illumnia (NASDAQ: ) and BioTelemetry (NASDAQ: ) make for very promising and opportunity-driven investments.
Illumnia is known as a large-cap Biotechnology Company located in the United States. Illumnia has just recently received approval from the FDA to market four new diagnostic devices, which are extremely helpful for gene sequencing. These devices allow labs to sequence a patient’s DNA, and have been referred to as “next generation sequencing,” also known as NGS. Two of the new diagnostic devices have been cleared for the use of detecting inherited cystic fibrosis genes. With these modern advances in medical diagnosis devices, physicians as well as labs will be able to receive genome diagnostics quickly and for cheaper prices. More than 10 million Americans are cystic fibrosis carriers, and “approximately 30,000 children and adults in the U.S. are affected with” cystic fibrosis. Illumnia currently has grown 88.61% this year, and this company doesn’t plan to stop innovating anytime soon.
The company I am about to mention is probably my favorite company for 2013. I have enjoyed watching this company over the previous two years, as I knew it had a very specific, and growing, niche. BioTelemetery, once known as Cardiocore, has produced astonishing returns this year, currently showing a yearly performance of 415.46%. This small-cap specialized health services company has shown nothing but promises since the August 2012 acquisition of Cardiocore. This company has very little coverage, but is moving at a rapid pace. Company CEO Joe Capper recently stated many positive things about the company, including that the company currently has no debt and has $21 million in cash on hand. Joe Capper also stated a three part business strategy; one of the steps consisted of identifying possible diagnostic markets and increase product line, market span, and updating all current wireless medical platforms and proprietary products. BioTelemetry is most known for wireless and remote monitoring for cardiovascular issues, and has currently shown four consecutive positive quarters in a row. There are ratings by multiple analysts with a target price of around $15.00 per share.
Though new can be scary, these companies have a strong track record in 2013 and continue to surprise investors and traders everywhere. BioTech, as well as medical devices, can add just the right amount of diversity to your portfolio. I highly recommend adding these companies to your watch list or CAPs profile, as they will be sure to outperform for years to come.