I have been telling you that Boston Scientific (BSX) was ripe for the pickings, and our friends at Erlanger Squeeze Play (www.erlangersqueezeplay.com) agree with us.
I just received this e-mail from Phil Erlanger and the gang at Erlanger Squeeze Play. Since I have been all over the stock for the past few weeks, I thought you would like to see another opinion.
Erlanger Squeeze Alert
#246, May 4, 2006
Catalyst and Recommendation
Today we are initiating a long position in Boston Scientific (BSX-$21.94) in our situational portfolio. The company just received a nice write up from www.forbes.com. Forbes mentioned that UBS commented on both Johnson & Johnson (JNJ) and Boston Scientific. Moreover, today Boston Scientific presented at the Morgan Stanley Global Healthcare Unplugged Conference. Both companies are manufacturers of stents, among other products, and have been underperformers for a period of time.
The stock is a Type 3, Shorts Are Correct with the potential to become a Type 1, Short Squeeze. Currently, the stock has begun to rebound; it is now at $21.94. Over the past year, Boston Scientific has been trading at 14% of it 52 week high and low. UBS noted that Boston Scientific is a "compelling story and valuation." Several near term catalysts should help the stock continue to recover. We note that several insiders recently have been picking up shares.
Erlanger Rankings and Short Position
The Erlanger Short Intensity Level for is 100%, and the Erlanger Short Ratio is 10.70. Our Erlanger Technical rank is at 10%, and the ETD is in a pullback of an uptrend. We note that seasonality is strong into mid-June, with a Cycle R = 0.42 (optimized.)
Erlanger Squeeze Play
