Stagnant Mindray Medical May Be Ready To Pop
In my opinion you should have completed or in the processing of completing a sector rotation that includes and overweight movement into the Healthcare sector. There are a variety of strong plays in this sector, one of my favorites is Gilead Sciences, Inc (NASDAQ: GILD) and I would put a conviction buy on Kinetic Concepts, Inc (NYSE: KCI) — even though it is facing strong distribution at the moment, just simply wait for your preferred buy signal to appear before dipping into it.
With those two already before me, I decided to write today about Mindray Medical International Limited (NYSE: MR). Mindray is a Chinese medical device operator and marketing company. This company has a strong pipeline of approved devices, in markets throughout the world, and expects a strong 2008 with 9 approvals in the United States alone. The company is doing a great job leveraging the cost benefits of working in the People’s Republic of China with a whopping 34 percent return on equity (MR). Five of six brokers have a strong buy or buy on the stock.
Technically, Mindray has bounced around between $35 and $40 for the past few months, but is looking to break out anew and make a run back toward $45 where it was before the markets turned ugly. During the past 8 trading days, 5 have been up on above average or average volume and 3 have been down on below average volume. During that period MR is up 12.8% compared to 5.35% for the S&P 500.
Disclosure here is that I actually held this stock down through its double bottom base and continue to hold long.
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