Certainly, speaking to the growth of the sector was the fact that nearly six times more stocks were added to the list from the BioMed/Healthcare segment of the market than were deleted.

Landauer (LDR) has had one heck of a run. In the last 52 weeks, the stock is up 41%, and considering this market, that is really saying something. From everything we are looking at, this small-to mid-cap ($684 million market cap) has done a wonderful job of growing sales and earnings in an incredibly difficult market. But when we look at the current sales and earnings numbers (despite how stellar they are), we just have to rate LDR as overvalued at this point.

Take a look at the scatter plot [click to enlarge], which outlines where LDR falls against its peers in the last quarter. The Y-axis demonstrates the 13-week return for each company, and the X-axis is where we rate their valuation. Amazingly, every one of the competitors for LDR (as defined by Google Finance) is located in the bottom right quadrant signaling a loss but improving valuation, while LDR is all alone in the top left quadrant signaling a gain, but deteriorating valuation.

Q2 2008 Earnings Call Transcript

August 11, 2008 5:30 pm ET

Downgrades: