It’s been quite a week for Given Imaging (GIVN) shareholders. The week started off with the BooYa man himself Jim Cramer recommending the stock, and then Tuesday's news that the Japanese central health insurance committee would be reimbursing patients who use the PillCam for the diagnosis of abdominal symptoms. This is a huge win for the company as Japan is, by most accounts, the second biggest healthcare market in the world.
This win proves what I posted on the company a month ago, that Given Imaging has successfully begun to execute their business plan. Since that posting, the stock has risen more than 15%, and like Cramer, I believe that this is one of the most exciting long-term Israeli plays out there.
It is important to keep in mind potential short-term volatility in the stock caused by profit takers, as well as the fact that, the local Tel Aviv stock exchange has a habit of performing poorly during July. With that in mind, any weakness should be used as a buying opportunity.
Disclosure: The author’s fund is long GIVN as of June 27, 2007.
GIVN 1-yr chart:
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