cmejaf30

Adam Cmejla

Real Money Earned: $0.83
Location: Indianapolis,, IN
Member Since: 3/26/08
Portfolio Total:$956,472.90

Stock Analysis: 5

Portfolio Start Date03/27/08
Annualized Return:-3.6%
Total Return:-4.4%

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Stock Pick by Adam Cmejla

BAX: Ceiling hit...don't expect to go much farther

Start trading BAX with real money!

Rate Analysis

2 ratings

Posted 570 days ago on 4/30/08

Market call:BAX will go DOWN
Target: $59.00 on 5/30/08
Current: $54.33 (-12.86% from time of market call)

While Baxter is a world-renowned name in the healthcare field, I just don't see BAX doing that well and breaking above the ceiling of about 63.25 or so. The pharma industry is always a cyclical sector and don't expect Baxter to vary from that trend. They haven't come out with anything to change the course of drug therapy, and with the latest bad press revolving around the Heparin incident, expect the whiplash from that bad press to have a somewhat lasting negative effect. It won't cause the stock to drop off completely, but it will hinder the gain. Not a stock to short, but def not one to pick up if trading above $60/share.

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Adam Cmejla

Posted 4/30/2008, 11:02 pm

I agree with your comment. This is true; however in the short term right now (and until the Heparin fiascal blows over completely, which it has for the most part) I'm staying away for a little bit. Baxter is one of the few pharma companies that will remain fairly steady, but I don't foresee it being in real growth mode for at least 6 months (much of like what you said).

DU_RYAN

Posted 4/30/2008, 10:53 pm

I agree with you that the stock is going to have some issues here in the short run, but I think over the next 6-12 months it will maintain a constant growth. The company has some new treatments that are currently going through FDA testing with good results to date. of course the stock can take a nasty fall if this congressional hearing goes poorly.

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