Given Imaging Poised to Beat Estimates

Aug. 1.07 | About: Medtronic plc (MDT)

Once again the Jim Cramer effect was proven with Given Imaging (GIVN). On the 22nd of June, the Booyah man had nothing but praise for the company and within a week Given’s stock had soared over 25%. Then as often happens when Cramer comes out bullish, the truck backs up all the way back to where he originally started from. He needs to keep it in drive and forget about reverse! In this case the low reached a few days ago was $1.12 higher than before he spoke.

With the stock down over 15% from it’s high of 3 weeks ago, and earnings coming out today, suddenly Given looks appealing once more. As I have mentioned more than once, the company has started executing its business model, shown strong growth, and raised guidance for the rest of the year.

Given Imaging has revolutionized the gastrointestinal diagnosis industry with the PillCam video capsule: a disposable, miniature video camera contained in a capsule, which is ingested by the patient and allows for the non-invasive visualization of the GI tract.

I wouldn’t be surprised if Given beats estimates, and raises its guidance even more. If this happens the stock will soar, and I am sure it will get an added boost as Cramer will revisit this on Mad Money, further moving the stock.

Disclosure: The author’s fund is long GIVN as of July 31, 2007.

GIVN 1-yr chart:

GIVN 1-yr chart