Earlier this week we utilized our colleague Jordan Kimmel’s Magnet® Stock Selection Process to unearth companies in healthcare and related arenas, mainly focusing on biotechnology firms. A total of five companies were identified, two small caps (less than $1 billion) and three mid caps (from $1 to $5 billion). The basis for these trades is biotechnology’s favorable season as detailed on page 92 of the Stock Trader’s Almanac 2013. All five ideas will be tracked in their respective Almanac Investor Portfolios. Today we share a second company from that basket.
Icon (ICLR) ranked near the top of our screen with a Magnet Score of 425. ICLR is headquartered in Ireland and is a contract research organization that provides services to the pharmaceutical, biotechnology and medical device industries. It stands to reason that as biotechnology and healthcare sectors continue to grow, a spill over effect to ICLR is quite likely. Its valuation is reasonable and the company is debt free.
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Disclosure Note: At press time, the Magnet AE Fund did not have a position in ICLR. Mr. Kimmel, Mr. Hirsch and the Magnet AE Fund may buy or sell securities mentioned in this article at any time.
Magnet® is a registered trademark of Jordan Kimmel. Jordan L. Kimmel is the Managing Member & Portfolio Manager of Magnet AE Management LLC and Jeffrey A. Hirsch is the Chief Market Strategist and a limited partner in the Magnet AE Fund.
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