Gathering New Information about Stocks, Health, and Sports

          In the foreseeable future, the inevitable “baby boom” generation will retire and require a copious amount of medical treatment. While such deduction is fairly well-known, I believe a lot of what has been said has underestimated the severity of the repercussions new and old diseases will bring to these potentially unfortunate individuals. While such a claim may seem ominous, healthcare companies are constantly working to provide new treatment to abate much of this danger. As a consequence, there is, I believe, a tremendous opportunity to invest in some of these healthcare providers such as AngioDynamics (ANGO), to not only understand the products they are making to help individuals, but to help increase your capital gains.

         I picked AngioDynamics for a multiple of reasons. It is true that such company has strong competitors such as Baxter, Boston Scientific, and Alcon, but after reviewing what AngioDynamics specifically does, I believe, it is the only one out of these companies to provide full treatment of peripheral vascular disease. While some may argue that a company like Boston Scientific provides for all types of diseases, like Warren Buffet alluded to, he purchases shares of companies that he knows a good deal about and which have a strong concentration ratio in relation to their field: traits which AngioDynamics absolutely encompasses. Thus, in addition to this strong percentage relative to the rest of the playing field, because healthcare, despite the Democrat majority in Congress, will have tremendous implications in the future years, AngioDynamics can become an amazing investment opportunity.

         To further examine more specific aspects of AngioDynamics, an investor must carefully observe the fundamentals and the growth or loss each number is responsible for. Containing growing margins in terms of revenue and experiencing growth relative to gross profit rise almost 27% last year, AngioDynamics, a fairly new firm, has the potential in the near future to utilize its growth into capital gains for its shareholders. In addition, despite the fact that AngioDynamics has seen falling operating income over the past year, this company has still maintained to provide growing cash on a year to year basis. Such growth rose 34% over the last year which correlates to more investment opportunities, research, and capital expenditures which, I believe, are more crucial to healthcare companies than in almost any other industry. In addition, assets to liabilities, in the form of the current ratio, has been outstanding relative to most other corporations, and such strong fundamentals has provided a reasonably strong P/E ratio multiple of about 40. It’s true that competitors such as Alcon may have smaller multiples and seem more attractive, but looking at forward ratio pricing in addition to basic fundamentals, AngioDynamics will provide a much lower multiple as understood by the forward P/E ratio. Furthermore, as 2007 looks to be a solid year for fundamentals, as the American economy is at its peak point in relation to the economic cycle, there is even further support for the numbers of AngioDynamics to continue to grow.

         Speaking now in the form of technical analysis, it is true that this company has traded publicly for only a few short years, but nevertheless, there are some observations I have made to support my purchasing campaign. From about 2005 to 2006, this company has been relatively flat after a strong growth period related to its IPO price. It is true that the company was balancing between a resistance and support level throughout these months, but careful observation has led me to believe such levels were changing every so slightly to provide a slow, fluctuating growth pattern. Now, many investors may argue that such may be the case and would look appealing, but the strong decline that this company recently posted in July may hinder some of the optimism associated with this newly traded healthcare company. It is true that such decline was provided on the basis of high volume, but looking almost three months later on September 25th 2006, AngioDynamics grew relative to share price grew almost 12% in one week on incredibly strong volume. Such has led me to decide that this company has corrected itself and will continue it’s slow by growing rate, pending its sustained strong fundamentals. Thus, while such company may not seem very beneficial to invest in for the short term, because the share price is relatively cheap and because of the strong indications that this company will at very least be restored back to its resistance level in the foreseeable future, such investment may be a wise one for long term investors.

         Therefore, by examining the usual strong fundamental and technical analysis I am truly akin to, and by understanding how healthcare, and more specifically this company relates to the market and its competitors, I believe there is tremendous optimism for investors who want to place there savings into a secure investment. It may be true that AngioDynamics is relatively new, but without risk there is no reward, and in this case there is a lot more reward, outbalancing the risk factor.

-Dennis Biray
December 18th, 2006