Celgene Corporation (CELG)
Aug
6
Written by:
8/6/2008 11:18 AM
Celgene Corporation
(CELG)
Medical Stocks have been showing continued strength with the
overall market uncertain if the correction has ended or the current uptrend is
just a pause before another leg down for the markets. Celgene Corp is one of
the strongest of the medical/biological companies that should continue to
appreciate in value.
Analysts Upgrades
& Sales Growth
Analysts
continue to upgrade their earnings expectations for the company with nine of
eighteen analysts raising their outlooks for the current quarter in the past
seven days. Current earnings growth estimates are for a 34.5% increase in
earnings for the quarter vs. last years same quarter. Sales revenues have also
been increasing steadily with current quarter growth estimated to be 69% and next
quarter’s growth estimated to be 54%.
Price/Earnings and
Beta
The
forwarding looking price to earnings for Celgene Corp is currently 33.11. This
compared to the earnings and revenue growth mentioned above makes the stock
reasonably priced for the growth the company is experiencing. This stock also
has a very low beta value of 0.24 which leads one to the conclusion that the
stock will steadily move in the current pattern without any abrupt moves to the
downside.
Options
Options
activity for the stock is not overly active but there is a definite bias to the
upside in the volume numbers of the Calls vs. the volume of the Puts. This is
true for August options where the 75 Calls have a decent amount of volume and
in September where the 80 and 85 Call options have much more volume than any of
the Puts available.
The Trade
Build a long
position in Celgene Corp over the next week and place a stop 5% below your
average purchase price. Take profits as desired or after a large move of 5% or
more to the upside in any given day.
1 comment(s) so far...
Project Estimation Software
Dan Galorath has invested more than two decades developing solutions to help government and commercial organizations plan and manage complex software, hardware, electronics, and manufacturing projects. His blog gives his opinions and insight into this hi-tech industry.
By Dan on
8/7/2008 12:38 PM
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