Buried Treasure - LAVA, BIOS, and AMED are Victims and Opportunities
From SmallCapNetwork
One of the few upsides to indiscriminate market pullbacks is that they make opportunities out of some stocks. How's that? When the market rebounds - and perhaps today is the beginning of the next one - many investors find that some very good stocks were beaten up, and priced at bargain prices for a 'normal' environment. Cases in point....BioScrip Inc., Magma Design Automation, and Amedisys Inc. Here's a closer look at how the big selloff made them monster values.
I know at first glance the chart of Magma Design Automation, Inc. (NASDAQ:LAVA) appears to be caught between a rock and a hard place.... above the 200-day average, and under the 100/50/20 day averages. While most would call it a stalemate for LAVA, I'd still give the advantage to the bulls - the long-term tend is not only still bullish, but quite reliable.
And it's the underlying fundamentals for this small cap stock that helped me come to that decision. Four straight earnings beats? And profitable each quarter? Single-digit P/E ratios? Yep, but Magma Design Automation still gets little love. I suspect it's a lack of analyst coverage that's the reason. That's ultimately a good thing though, for the time being. (It works).