Long Position on CMN @ $35.15 on 11/20/2013 (Fundamentals)

Bullish Cup & Handle on CMNCantel Medical Corp. (CMN) provides infection prevention and control products and services in the healthcare market.

Its Endoscopy segment offers medical device reprocessing systems, disinfectants, detergents, and other supplies that are used to disinfect flexible endoscopes; and disposable infection control products for cleaning and disinfecting reusable components used in gastrointestinal endoscopy procedures.

Its Water Purification and Filtration segment offers water purification equipment and services, filtration and separation products, and disinfectants for medical, pharmaceutical, biotech, beverage, and commercial industrial markets. This segment also offers hollow fiber membrane filtration and separation technologies for medical applications; and sterilants, disinfectants, and decontamination services used in various applications for infection prevention and control.

The company’s Healthcare Disposables segment offers single-use infection prevention and control healthcare products, including face masks, sterilization pouches, towels and bibs, tray covers, saliva ejectors, germicidal wipes, plastic cups, and disinfectants used principally in the dental market; and biological and chemical indicators for sterility assurance monitoring services in the acute-care, alternate-care, and dental markets. Its Dialysis segment offers medical device reprocessing systems, sterilants/disinfectants, dialysate concentrates, and other supplies for renal dialysis.

The company’s Specialty Packaging segment offers specialty packaging and thermal control products, as well as related compliance training for the transportation of infectious and biological specimens and thermally sensitive pharmaceutical, medical, and other products. 

Shares have formed a bullish "cup & handle" and higher share prices are expected for this stock. Note that the company reports its results on December 5th.

52-Week Trading Range: $17.35 - $36.23

Entry Point: $35.15

Stop Loss: $33.35

Target Price: $38.60

Updates

12/17/2013 10:02:32 AM

CMN fell below our stop loss.

Position closed on 12/17/2013 at price of $33.20 with a -5.55% loss in 27 days.

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