1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Alberto Abaterusso
Alberto Abaterusso
Articles (1701) 

Consider These 3 Falling Knives

NCS Multistage Holdings tops the list

April 29, 2019 | About:

After declining more than 59% over the past year through April 26, the following falling knives may be appealing to investors who believe they can outperform the overall market over the next 52 weeks as a result of forecasted price targets and strong recommendation ratings.

Further, these companies have a GuruFocus financial strength rating of at least 5 out of 10, reducing the bankruptcy rate risk, which is not uncommon among falling knives.

Here are the results of my search.

NCS Multistage Holdings Inc. (NASDAQ:NCSM) closed at $4.09 per share on Friday after a 78% decline over the past year through April 26, sending the price below the 200, 100 and 50-day simple moving average lines. The closing price on Friday was 4.1% off the 52-week low of $3.93 and 355% from the 52-week high of $18.6.

The Houston, Texas-based provider of equipment and services to oil & gas operators has a market capitalization of $190.9 million. The forward price-earnings ratio is 434.78 versus the industry median of 21.37, the price-book ratio is 1.14 versus the industry median of 1.19 and the price-sales ratio is 0.83 compared to the industry median of 1. The EV-Ebitda ratio is 4.9 versus the industry median of 11.92.

GuruFocus assigned a financial strength rating of 6 out of 10 and a profitability and growth rating of 5 out of 10.

Wall Street issued an overweight recommendation rating with an average target price of $7.25, reflecting a 77.3% upside from the closing price on Friday.

The 14-day relative strength index of 30 suggests the stock is approaching oversold levels.

Shares of La Jolla Pharmaceutical Company (NASDAQ:LJPC) closed at $7.63 on Friday for a market capitalization of approximately $206.59 million. The stock declined 74% over the last 52 weeks through April 26, sending the share price below the 200 and 100-day simple moving average lines though it is still on par with the 50-day simple moving average line. The 52-week range is $5.01 to $38.39.

Headquartered in California, the developer of therapeutics for life-threatening diseases has a price-book ratio of 6.91 versus the industry median of 4.1 and a price-sales ratio of 19.72.

GuruFocus assigned a financial strength rating of 5 out of 10 and a profitability and growth rating of 3 out of 10.

Wall Street issued an overweight recommendation rating with an average target price of $20.5, reflecting 169% upside from Friday's closing price.

The 14-day relative strength index of 61 suggests the stock is still far from oversold levels.

Shares of Mersana Therapeutics Inc. (NASDAQ:MRSN) closed at $4.69 on Friday for a market capitalization of $223.64 million. The stock has declined 72% over the past year through April 26.

The chart below shows the stock is trading near the 100 and 50-day simple moving average lines, but below the 200-day simple moving average line. The closing share price on Friday was 65% above the 52-week low of $2.85 and 410% below the 52-week high of $23.96.

The Cambridge, Massachusetts-based biotech company has a price-book ratio of 12.37 versus the industry median of 4.1 and a price-sales ratio of 10.2.

GuruFocus assigned a financial strength rating of 7 out of 10 and a profitability and growth rating of 2 out of 10.

Wall Street issued an overweight recommendation rating with an average target price of $10.25 per share, which represents 119.1% growth from the closing price on Friday.

The 14-day relative strength index of 47 suggests the stock is neither oversold nor overbought.

Disclosure: I have no positions in any securities mentioned.

Read more here: 

Newmont Goldcorp Falls on 1st-Quarter Results 

2 Large Drug Manufacturers Release 1st-Quarter Results 

Acacia Mining Releases 1st-Quarter Results 

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Alberto Abaterusso


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)