[from today’s issue of Smart Tech Investor]

Cambrex Corp. (CBM) manufactures active pharmaceutical ingredients for brand name and generic drugs that treat pain management, cardiovascular, central nervous system, endocrine, gastrointestinal, skin, respiratory and urinary conditions. The company specializes in all areas of development and manufacturing from the transition from research and early stages of FDA approval to the full industrial ramp up stage of drug marketing.   Cambrex offers a huge library of compounds that include commonly prescribed drugs as well as potent anesthetics and mood influencing drugs.

The stock has withstood the recent selling spree in the health care sector and will report earnings on October 29, 2015 before the market opens. In its July earnings call management upgraded expectations and guidance noting that it expected “full-year 2015 expectations for revenue growth in the Innovator category to be between 31% and 34% over last year versus our prior expectations of 27% to 30% growth.”

If there is no earnings disappointment, we would expect Cambrex to move up nicely over the next few months, barring negative external events. The company is well positioned, especially in the current market where high priced drugs are under scrutiny. Cambrex is a buy up to $47, with a stop loss at $39.