Let's take a look at the other stock posted that week back in 2006: Kinetic Concepts (KCI), a stock that I have also recently owned in my own Trading Portfolio--but currently do not own any shares.
On July 14, 2006, I posted Kinetic Concepts (KCI) on Stock Picks Bob's Advice when it was trading at $44.45. Kinetic Concepts (KCI) closed at $51.02 on January 11, 2008, for a gain of $6.57 or 14.8% since posting.
Looking at the ' point & figure' chart on KCI from StockCharts.com , we can see the stock trading in what I would call a volatile fashion with wide swings of the stock price from a $64 level in April, 2005, to a low of $23 in August, 2006, only to turn around and climb to a high of $66 in July, 2007. The stock has sold off since November, 2007, to a low of $47 and is seeming to be forming a new are of support---possibly for a continued move higher (?).
Let's take a look at the latest quarterly report.
On October 23, 2007, Kinetic Concepts (KCI) reported 3rd quarter 2007 results . Revenue climbed 17% to $410.9 million from $350.9 million last year beating expectations of $406.7 million according to analysts polled by Thomson Financial. Earnngs increased to $59 million or $.82/share from $49 million or $.67/share in 2006. This also beat expectations of $.79/share according to Thomson Financial.
The company also raised guidance for full year 2007 results to $3.20 to $3.30 per share from prior guidance of $3.10 to $3.20/share. They also raised revenue guidance to between $1.58 and $1.60 billion from prior guidance of $1.56 to $1.59 billion.
Finally, looking longer-term, the Morningstar.com "5-Yr Restated" financials appears intact. Revenue is continuing its uninterrupted rise, earnings, after a dip in 2004 and 2005 have resumed their steady climb, total shares are very stable, free cash flow is positive and growing and the balance sheet is solid.
With all of these findings,
KINETIC CONCEPTS (KCI) IS RATED A BUY
So how did I do with these two stock picks? Actually pretty good. Both had gains and the average of the two works out to an average gain of 17.6%. I can live with that :).
Thanks again for dropping by and visiting! If you have any comments or questions, please feel free to leave them on the blog or email me at bobsadviceforstocks@lycos.com. If you get a chance, be sure and visit my Covestor Page where my actual trading account is reviewed and analyzed, my SocialPicks page where my many picks from the blog over the past year are recorded and also monitored, and my Podcast Page where you can download some mp3's of me discussing some of the many stocks I write about here on the blog.
I hope next week works out well for you. And that 2008 is a good year both financially and personally for all of my readers!
Bob
![]()
$51.26 (01/14/08)
