InfuSystem Holdings, Inc. (AMEX:INFU) in the $0.90 range has finally found a three week flat line; Baxter International Inc. (NYSE:BAX) picks up $1 after yesterdays’ loss; and CareFusion Corporation (NYSE:CFN) gives a little back today. Some interesting prospects for Value Hunters...
Baxter is currently trading in the $55.55 range today, but remains $7 off its 52-week high and CareFusion trading in the $24.50 range today remains nearly $5.50 off its 52-week. I think they are both bargains at their current price level. For a medical supply stock under $1 a share, I like InfuSystem Holdings, Inc. (AMEX:INFU) and here’s why…
The Company fell from $2.60 in early May to $1 in late Sept, a loss of 61% in a little less than four months which could be interpreted as a 61% discount to new buyers and aggregators depending on your perspective.
As for the share price recently, once the Company hit $1 in late September, it established a strong enough fluctuating bottom between $0.90 and a dollar to set the stage for a rally. At the beginning of Sept the stock was $1.50.
I think it can reach that price once again in the short-term (6 mos) now that some good news is appearing: The Company is set to join the Russell Microcap Index, which will give it great exposure to new buyers, and in a smart move in late August, InfuSystem Holdings, Inc. (AMEX:INFU), amaker and seller of infusion pumps launched some new media, videos to be exact, to help introduce new patients to the basics of infusion pump therapy. The Company set a precedent in doing this.
Its pumps are widely used in chemotherapy and the educational videos will surely ease the nerves of new patients. Like I said; a smart move.
There are virtually no short sellers of the stock and I think that will help a rally to develop; no downward pressure to suppress a rise in share valuation. The Company will report its Q3 earnings on Nov 10 and some increases in sales and EPS could easily push the stock into a rally.
I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.