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JimVanMeerten (62.22)

Articure stills the quivering heart

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August 24, 2010 – Comments (0) | RELATED TICKERS: ATRC

I'm adding Articure Inc (ATRC) to the Barchart Van Meerten New High portfolio. They are a medical device company focused on developing, manufacturing and selling innovative surgical devices to create precise lesions, or scars, in soft tissues. Medical journals have described the adoption by leading cardiothoracic surgeons of the AtriCure, Inc. bipolar ablation system as a standard treatment alternative during open-heart surgical procedures to safely, rapidly and reliably create lesions in cardiac, or heart, tissue to block the abnormal electrical impulses that cause atrial fibrillation, a quivering of the upper chambers of the heart.

Wall Street brokerages have 4 buy recommendations published based on estimates that sales will increase 6.10% this year and 12.90% next year. They have made very aggressive earnings projections of increases in EPS of 12.80% this year, 55.90% next year and a 5 year annually compounded EPS increase of 55.00%. I like projections like this.

Barchart has all 13 technical indicators signalling a 100% buy, The stock hit 18 new highs in the last 20 sessions including 5 in the last 5. The price increased 17.09% in the last month with a Relative Strength Index of 81.01% and rising. The stock recently traded at 7.40 well above its 50 day moving average of 6.44.

General investor sentiment as measured on Motley Fool is small but positive with the CAPS members voting by 32 to 3 that the stock will beat the market with the All Stars in agreement 10 to 2. Fool notes that the last 5 articles that Wall Street columnist have written about the company have all been positive.

I considered these points:

1 - Barchart has all 13 technical indicators giving a 100% buy signal

2 - The 14 day Relative Strength Index at 81.01% and rising

3 - Wall Street has buy recommendations published based on double digit projections of increases in sales and earnings

4 -  Investor sentiment is small but positive

Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: No positions in the stock mentioned at the time of publication

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