Market – S&P 500: MA(50) is still below MA(200). Not a confirmed uptrend yet. Better not to buy any stocks at this time.
BRKR – Bruker Corporation: Technology, Scientific & Technical Instr., Mid-Cap Growth, $13.62 (17 Sept 10).
From Bruker Corporation’s 2009 Annual Report: “We are a global manufacturer of scientific instruments that address the rapidly evolving needs of a diverse array of customers in life science, pharmaceutical, biotechnology and molecular diagnostics research, as well as in materials and chemical analysis in various industries and government applications. Our core technology platforms include X-ray technologies, magnetic resonance technologies, mass spectrometry technologies, optical emission spectroscopy, infrared spectroscopy, and Raman spectroscopy technologies. We also manufacture and distribute a broad range of field analytical systems for chemical, biological, radiological, nuclear and explosives, or CBRNE, detection. We also develop and manufacture low temperature and high temperature superconducting wire and superconducting devices for use in advanced magnet technology, physics research, and energy applications. We maintain major technical and manufacturing centers in Europe, North America, and Japan, and we have sales offices located throughout the world. Our corporate headquarters are located in Billerica, Massachusetts.”
To me the above statement is so scientific. I do not have a clue what their business is. At first, I planned to go deep into understanding what the company does and how its stock performs in the market. The reason I initially chose BRKR is because it came up in my screener, which means its EPS growth in the last quarter as compared to the same period last year is above or equal to 25%. Its revenue growth is also 25% or above. The stock has also outperformed the market by at least 10% in the last 52 weeks. Things look good at first, but then I noticed that its PEG (P/E growth ratio) is only 1.36. A PEG of 1.5 would be OK; 2 or above is what we really want; so BRKR does not make a cut in that aspect. (Read Peter Lynch’s One Up On Wall Street). One disturbing number is its performance vs industry; when I screened it, its performance for the last 52 weeks was shown as good, i.e. above 10%. But strangely, the performance for this year has been negative, i.e. -1.13%. So it did well for one whole year, but for YTD, its performance has gone a bit unfavorable. Although the screener picked it up, after looking at its numbers more thoroughly, I don’t think it is a stock that we should look at.
As I indicated earlier, I do not have the slightest idea about what the company produces or delivers. Buy a stock only if you understand the business. Well, at least that’s the idea if you want to keep it for long-term. Enough said, the bottom line is let’s not go more in-depth with this stock. The business of the company is not easy to understand. Leave it for those with strong scientific aptitude. As I don’t understand it, let’s not have it in my portfolio simulation.
Disclaimer: Techniques or analysis covered on this website are to be used at your own risk. I cannot guarantee the outcome of applying any of the techniques or analysis, will always be in your favor. You must always do your own analysis and make your own decision before you purchase a stock.
“Stock of the Week” is not a recommendation of stock. It is a coverage of an interesting stock. Unless otherwise stated, no actual purchases or sales of stocks are undertaken. Actions taken are only simulated trading.
- A Coming Bruker Superconductor IPO (BRKR, ESCT) (247wallst.com)
- Is Bruker Corp. Growing Foolishly? (fool.com)
- Bruker Announces New Scientific Instruments and Software, plus Innovative, Turn-Key Analyzers for the Pharma, Food, Solar, Metals and Advanced Materials Industries (eon.businesswire.com)