Long Position on CMN @ $38.65 on 10/24/2014 (Momentum)

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 used to disinfect flexible endoscopes; and disposable infection control products for cleaning and disinfecting reusable components used in gastrointestinal endoscopy procedures, as well as technical maintenance services on its products.

The company’s Water Purification and Filtration segment provides water purification equipment and services, filtration and separation products, and disinfectants for the medical, pharmaceutical, biotech, beverage, and commercial industrial markets; and disinfectants, and decontamination services used in various applications for infection prevention and control.

Its 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.

The company’s Dialysis segment provides medical device reprocessing systems, sterilants/disinfectants, dialysate concentrates, and other supplies for renal dialysis. Its 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.

The company sells its products through its direct distribution network in the United States; and directly or under various third-party distribution agreements internationally.

Shares have formed a bullish "cup and handle" and higher share prices are expected for this stock.

52-Week Trading Range: $29.60 - $40.19

Entry Point: $38.65

Stop Loss: $36.71

Target Price: $42.51

Updates

10/31/2014 10:00:01 AM

CMN reached our target. Closed at $42.71.

Position closed on 10/31/2014 at price of $42.71 with a 10.50% gain in 7 days.

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