3SOF

Today's chart on ANGN looks better than the previous chart, which was a bit scary. If we notice, the stock is making higher lows. Higher lows and equal highs make an ascending triangle formation, which is a bullish chart pattern.

Probably we'll need some more positive news to make this trade work. When a positive news kicks in and this starts to move with volume, traders will look at the market cap and they will be 

Then the stock will shot up 50% or more. We just need patience. I need patience. Many years day trading futures made me very sensitive to pain, with no waiting capacity. But I guess I'm learning 

David

May be ANGN's problem is like CDV's problem -- profit margins? 

Best,
Vova

Quote from: voova99 on February 17, 2006, 08:09:54 AM
David

May be ANGN's problem is like CDV's problem -- profit margins? 

Best,
Vova

Hello voova99 

Well, ANGN only had 1 profitable quarter in its history, which was the last quarter ending October 31. Gross margin was 53% and net profit margin was 4.48%, indeed a low number.

But net margin can rise in the near future, in fact, let's see how the gross margin behaved in the past:



As we can see, gross margin is slowly getting better on ANGN (now at 53%) and the company just turned in its first ever profitable quarter. Even if there's no growth, the stock's earnings multiple is just 11 at this particular moment, which is cheap. But I believe in the company's products and services and I think it will manage to continue growing.

Technically we're also making progresses, as ANGN was able to close slightly above the descending trendline of a symmetrical triangle pattern.

I'll continue holding ANGN.

Probably ANGN will report earnings only in April, so there's a long wait between here and then. Since the stock has low liquidity, I expect it to move sharply only when there's news available.

I'll wait for that quarterly earnings release with patience, at this moment technicals are mixed to bullish.

I'll continue holding ANGN.

Nice volume yesterday of 34,900 shares on ANGN 

I can say it is above average. I also like the little white candle at the end of the day. Come on, everybody knows this will break $4.63 on the upside, what are we waiting for?

I have time to wait, at least until I'm full invested ... (and I'm only about 40% invested at this hour, shame on me  )

Quote from: David Randolph on February 24, 2006, 06:26:34 AM
Nice volume yesterday of 34,900 shares on ANGN 

I can say it is above average. I also like the little white candle at the end of the day. Come on, everybody knows this will break $4.63 on the upside, what are we waiting for?

I have time to wait, at least until I'm full invested ... (and I'm only about 40% invested at this hour, shame on me  )

It looks like some people really lost patience on ANGN, as the stock was down a lot during the day. But, surprise, surprise, it ended at the high of the day, again, on above average volume of 40,700 shares traded. The candlestick left on the chart strongly suggests higher prices to come.

Someday we'll all wake up and see ANGN break above $4.63 and never look back. That day is now closer and closer.

Slowly, but surely, ANGN is coming back. Now that the general market dived, perhaps people will have time to notice the extreme undervaluation of this company, with just $14.65M in market cap, profitable and showing double digit revenue growth.

I'll continue holding ANGN, expecting a breakout of the $4.63 level to new all time highs.

fyi:
ANGN: Receives Positive Ruling in Insurance Coverage Case

Monday , February 27, 2006 08:45 ET

Angeion Corporation (ANGN) announced, that in an Order dated February 17, 2006, Judge David S. Doty of the United States District Court for the District of Minnesota granted, in large part, Angeion's motion for summary judgment in the pending lawsuit Medmarc Casualty Insurance Company v. Angeion Corporation, ELA Medical, Inc. and ELA Medical SA.

In summary, the Court ruled that:

--  The June 2005 settlement between Angeion and ELA Medical under which
    Angeion agreed to pay ELA $1.4 million to settle the claims arising out of
    the recall of Angeion's implantable cardioverter defibrillators ("ICDs")
    was reasonable, non-collusive and made in good faith;
--  Medmarc has a duty to indemnify Angeion for the $1.4 million
    settlement, plus interest from June 30, 2005;
--  The Court stated that 32 of the 160 ICDs that were explanted did not
    meet specified voltage levels to warrant recall and therefore the "device
    costs" and "ELA expenses" associated with those 32 ICDs were not covered by
    the policy. The Court stated it could not make a specific determination
    with respect to that portion, if any, of the $1.4 million settlement that
    pertains to device costs and ELA expenses with respect to those 32 ICDs.
    This matter, therefore, remains subject to future determination by the
    Court or resolution by Angeion and Medmarc.
--  Angeion is entitled to recover from Medmarc costs and fees in the
    amount of $49,353.10 incurred in defending ELA's claims.

On August 25, 2005, the Court had found that Medmarc had a duty to defend Angeion and had breached that duty.

On June 30, 2005, Angeion had entered into settlement agreements with ELA Medical, Inc. and ELA Medical S.A.S. (together "ELA") that ended the legal dispute and lawsuit by ELA against Angeion and resolved all litigation and other issues between Angeion and ELA related to recall of the ICDs and reimbursement of expenses incurred by ELA. Under the terms of the settlement agreement and release regarding LYRA ICDs, ELA agreed to settle its $2.0 million plus cross-claim against Angeion in return for an Offer of Judgment on ELA's cross-claim in favor of ELA and against Angeion in the amount of $1.4 million. The judgment was subsequently entered by the Court and has been satisfied by Angeion.

Thanks for posting the news la-onda  It wasn't very significant for the stock price, which is still waiting for more information (or, in this case, publicity).

I'll continue waiting and holding ANGN.

Also, nothing happened since my last update on ANGN. Probably earnings will be out just in April, and often these low liquidity stocks only get investor's interest at such occasions.

I'll continue holding, though.

It looks like earnings were out this morning after your update.......


Angeion Corporation Reports First Quarter Profit and Record Quarterly Revenues
http://biz.yahoo.com/iw/060306/0112052.html

Quote from: bocasva on March 06, 2006, 10:03:11 AM
It looks like earnings were out this morning after your update.......


Angeion Corporation Reports First Quarter Profit and Record Quarterly Revenues
http://biz.yahoo.com/iw/060306/0112052.html

Thanks for noticing it bocasva 

As we thought, ANGN just needed publicity to go up ... up 13% as I write 

Still just a $15M market cap, so this can make a huge run. I'll look for the complete 10-K report, since I don't understand why revenues grew from $6.654M to $6.933M, and earnings per share declined from $0.09 to $0.05 on a sequential basis, particularly since they say the gross margin improved:

«Gross margin improved to 51.2 percent up from 46.4 percent in the first quarter of 2005»

Perhaps there was a special tax charge or whatever. I'll wait for details, as the stock is set to break $4.63 on the upside. Go ANGN, go !!!

I have sold ANGN today. It has like most of David's pick been a great investment.

I am sure this company has a great future ahead of it and I am also sure that i will be a happy ANGN shareholder again but I have one problem. The management keep saying that they are working

Quotetoward achieving and sustaining profitability.

What exactly do they mean  having in mind that they have now been profitable in two quarters are they not sure that the next quarters will be profitable. I don't know but I don't want to hold this stock if they post a loss. I might want to buy it though because in the long term I believe in the business model.

Mike

Quote from: Michael on March 07, 2006, 12:58:18 PM
I have sold ANGN today. It has like most of David's pick been a great investment.

I am sure this company has a great future ahead of it and I am also sure that i will be a happy ANGN shareholder again but I have one problem. The management keep saying that they are working

Quotetoward achieving and sustaining profitability.

What exactly do they mean  having in mind that they have now been profitable in two quarters are they not sure that the next quarters will be profitable. I don't know but I don't want to hold this stock if they post a loss. I might want to buy it though because in the long term I believe in the business model.

Mike

I agree Michael, those are strange words. Since the company is profitable now for two quarters in a row, why do they say they want to achieve profitability?

Anyway, revenues for the fiscal 1st quarter were $6.933M. If we annualize this we get $27.73M. The market cap is still just $16.11M, so the stock trades at a revenue multiple of 0.58. But, the Medical Instruments and Supplies industry trades at 4.13 times revenues.

So, even if ANGN posts a quarterly loss, the stock is still very undervalued.

Although I feel it can go down short term, as you say, «I believe in the business model» and I'll continue holding ANGN.

I'd like to start my first update on this trade with a little quote from David's first analysis on this topic:

Quote from: David Randolph on January 11, 2006, 07:07:26 AM

If ANGN breaks $4.63 on the upside, as I think it will, I believe ANGN can easily double from current levels over the short term.

Well, ANGN closed today at $4.90 after a nice run on Friday's breakout.
The long term chart (semi-log) looks great, having an ascending channel going on, and the stock going forward. The short term chart looks great as well, now with this breakout... there is only one thing missing here, which is publicity... ups... I mean Volume :-)

Michael may have a point here, there was no need for the management to say such low confidence things, and they may need some PR experts.

Quote from: MichaelI am sure this company has a great future ahead of it and I am also sure that i will be a happy ANGN shareholder again but I have one problem. The management keep saying that they are working toward achieving and sustaining profitability.

I'm enjoying the stage of this trade, and I'm not setting a stop right now... I'm very curious if the volume will show up on this breakout level. (It is although possible and probable, from a technical point of view a new re-test on the $4.63 breakout level which will do no harm in my opinion).

We are holding ANGN !