At the end of each trading week, Hillbent scans the equity market for potential anomalies which exhibit extremely oversold and overbought conditions. Past observations have revealed that such candidates may experience reversal corrections to the upside or downside once the market reconfirms that their fundamentals remain solidly intact or relatively poor. From a contrarian perspective, these lists may also serve as a precursor to changes in institutional sentiment and underlying fundamentals.

(The purpose of this report is not to provide specific recommendations, but instead serve as a time-saving reference tool and starting point for investment ideas as the upcoming trading week unfolds. Of course, the results generated are not always perfect and users are strongly encouraged to perform their own due diligence on these names. Note that overbought and oversold conditions are based upon proprietary algorithms and quantitative models instead of conventional technical analysis indicators. As a supplement to this report, please refer to our Market Condition Summary to determine if market direction trends support a bullish or bearish investment bias over short-term, intermediate, and long-term timeframes.)

Cantel Medical (CMN) came across my screen early this morning when I noticed the company will be reporting earnings today. Cantel provides infection prevention and control products for the healthcare market, including water purification, sterilization products, face masks, and more. Cantel is the type of well positioned small cap in a growing niche market that I like to invest in, and it recently promoted a new CEO, so this could be a nice turnaround story.

Cantel shares are up around 50% this year, but still trade at half the price of Summer 2005 levels. The shares are exhibiting a bullish flag breakout pattern that implies a move to $24, and possibly further. Shares formed this flag and broke out above its 200 week moving average, and also trades above its 200 day EMA.

F2Q09 Earnings Call

March 9, 2009 11:00 am ET

At the end of each trading week, Hillbent scans the market for extremely oversold stocks with a proprietary "A" (strongest) or "B" (next strongest) ranking in terms of positive fundamentals for revenue and earnings stability. The generated results is better known as the "Weekly Babies With Bathwater" watchlist.

Past observations have revealed that such candidates may experience reversal corrections to the upside once the market reconfirms that their fundamentals remain solidly intact.

Cantel Medical Corp. (CMN) is rallying after reporting another strong quarter in early December. The current-year estimate has been rising for the last few months as analysts anticipate strong earnings growth from the company.

Company Description

Cantel Medical Corp. (CMN)

F4Q08 Earnings Call

F2Q08 Earnings Call

March 6, 2008 11:00 am ET

Cantel Medical Corp. (CMN)
F4Q07 Earnings Call
October 9, 2007 11:00 am ET

Executives