Buy Alert: LeMaitre Vascular (LMAT)

By Jim Pearce • October 5, 2016

TRADE INSTRUCTIONS

Date: October 5, 2016
Name: LeMaitre Vascular
Symbol: LMAT
Type: Open
Limit: Buy below $21

TRADE TARGETS

Holding Period: 3 months
Target Return: 20%
Annualized Return: 80%
Stop Loss Level: $17.75

TRADE RATIONALE

LeMaitre Vascular, Inc. is a provider of medical devices for the treatment of peripheral vascular disease. The Company and its subsidiaries develop, manufacture and market medical devices and implants used primarily in the field of vascular surgery. It operates in the design, marketing, sales and technical support of medical devices and implants for the treatment of peripheral vascular disease industry segment.

This alert was triggered by LeMaitre’s rapid growth in sales, which have increased by an average of nearly 25% annually over the past five years. In addition, LeMaitre has no long term debt, and holds current assets more than six times greater than its current liabilities. LeMaitre has also seen its operating cash flow increase (OCF) at an astounding rate. From 2009 thru 2013 the company produced OCF at a fairly steady pace of approximately $4 million annually, but over the past three years OCF has nearly quadrupled to more than $15 million estimated for this year.

Despite that impressive performance, our model indicates that LeMaitre’s share price is undervalued by approximately 20%. The company will release its next quarterly earnings report during the last week of October, at which time we expect it to also provide higher guidance for future revenue and earnings. Although we have a three-month target holding period for this trade, if we get the jump we are expecting later this month then we may close this position out early.

Stock Talk

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Jon D.

10/05/16 ‐ 10:24am ET October 5, 2016 at 10:24am ET

Thanks Jim Pearce,
I took on a position and liked that it is below the center line of bollinger Bands on my chart shows upside possibilities to me.
Cheers,
Jon

Jim Pearce

10/05/16 ‐ 10:59am ET October 5, 2016 at 10:59am ET

Hi Jon. I noticed that too. If the stock market doesn’t do anything too crazy heading to the election, I believe this trade could payoff quite soon. Thanks!

Larry Johnson

10/05/16 ‐ 11:44am ET October 5, 2016 at 11:44am ET

Thank you, Jim.
This is my first trade utilizing Systematic Wealth.
I took a small position on it as all the indications look promising as you’ve pointed out.
Let’s see what happens with it.
LJ

Jim Pearce

10/05/16 ‐ 12:40pm ET October 5, 2016 at 12:40pm ET

Thank you, Larry. As I state in the “How it Works” document under the Resources tab at the top of this page, “We aim to have 10 – 20 open trade positions at any time, so dedicating 5 – 10% of your account balance to each trade should allow for proper diversification.”

StarkmanAZ

10/05/16 ‐ 12:18pm ET October 5, 2016 at 12:18pm ET

Thank you,
I just placed my first order in Systematic Wealth.
Just a small position, we will see what happens.

Jim Pearce

10/05/16 ‐ 12:43pm ET October 5, 2016 at 12:43pm ET

It will take a few months for us open enough positions to fully judge Systematic Wealth, but I am confident you will be quite pleased with it once you have seen it at work for a while. Thank you for joining us!

FredW

10/05/16 ‐ 1:30pm ET October 5, 2016 at 1:30pm ET

Thanks Jim…I placed my first order in SW!

George

10/05/16 ‐ 2:46pm ET October 5, 2016 at 2:46pm ET

I just made my first trade with SW (LMAT). I notice on the open portfilio that LMAT has a stop loss order of 17.75. I did not see anything about a stop loss in the buy alert. Do we have to look in the portfolio to know the stop loss, or is it documented somewhere else?

Jim Pearce

10/05/16 ‐ 2:48pm ET October 5, 2016 at 2:48pm ET

I can add the stop loss info on the buy alert if that will help. The stop loss is usually about 15% below the entry price, so I have not included it in the past buy alerts since that info (hopefully) would not come in to play for some time, if at all. Thank you.

George

10/05/16 ‐ 3:18pm ET October 5, 2016 at 3:18pm ET

I stand partially corrected. I see the stop loss on the alert from the web page – BUT, it is not shown on the e-mail notice.

Jim Pearce

10/05/16 ‐ 4:07pm ET October 5, 2016 at 4:07pm ET

No, you were correct all along. I added it to the alert after your message so it will remind me to include that data point in future buy alerts. Thank you.

Alpha_Dog_510

10/06/16 ‐ 7:20pm ET October 6, 2016 at 7:20pm ET

The Stop on Quote order I placed on E*Trade for LMAT $17.75 is valid according to a rep. I was told the order will remain open until that price is hit and that is when an alert will be sent. I will remain alert for further instructions from SW.

Thank you Jim.

black arrow

10/10/16 ‐ 9:17am ET October 10, 2016 at 9:17am ET

Hi Folks,
I was perusing my chart on LMAT, and last Friday last trade of the day was a buy of 2277 shares.
This points to an institutional investor that is accumulating shares.
This bodes well for us.

Richard C.

10/10/16 ‐ 12:07pm ET October 10, 2016 at 12:07pm ET

This portfolio is now at a LOSS of – 1.07% to date ! This is not going very good.
Please explain !

Jim Pearce

10/10/16 ‐ 1:38pm ET October 10, 2016 at 1:38pm ET

It is not unusual for out trades to start out slightly negative, which is one reason why our target holding period is 3 – 6 months. Please keep in mind this is not a day trading service, so if that is what you are looking for then this is not going to satisfy that need. Thank you.

black arrow

10/13/16 ‐ 7:31am ET October 13, 2016 at 7:31am ET

It’s about the election as well as the fomc are they raising rates r not?
It’s too bad but presidential elections are sea anchors

Janis Bell

10/10/16 ‐ 5:28pm ET October 10, 2016 at 5:28pm ET

I just joined and see rhis but alert is 5 days old. I thought we would be given the specific day to buy and a certain percentage of portfolio. I do not see anything in the % and am not clear if a bit from 10/5 is still open on 10/11– which is when it would go through

Alpha_Dog_510

10/10/16 ‐ 6:09pm ET October 10, 2016 at 6:09pm ET

Hi Janis if you review the members guide located at the top of this page it will provide you with the information you require. We will receive alerts once a stock meets the SW criteria. On average 3 times per month. Read the members guide, its short and to the point. I hope this helps. Take care.

Alpha_Dog_510

10/10/16 ‐ 6:12pm ET October 10, 2016 at 6:12pm ET

**Resources then Member Guide.

black arrow

10/10/16 ‐ 6:34pm ET October 10, 2016 at 6:34pm ET

Hi Janis,
Not to worry I’d say. I have proof an 9institutional buyer is accumulating shares see the attached chart http://schrts.co/DtFxyF Look at the top toward the center see the green arrow pointing up? last trade of the day was a buy of 4908 shares. Also RSI is above 50 which you can interpret as an uptrend. With institutional support in LMAT it should go ‘Our Way’. If you are unfamiliar with MACD, when the green histogram goes above 0.0 that is a buy signal.
Cheers

Janis Bell

10/12/16 ‐ 6:17am ET October 12, 2016 at 6:17am ET

Hi alpha Dog and black arrow, thanks for quick responses. I will buy this today or tomorrow, once I understand more about strategy.It looks like the stock took quite a nice dip yesterday evening, and I wonder if anyone knows what provoked that dip. I was not able to get online yesterday and am glad I was forced to wait, but now wondering if buy is still recommended by Jim.
I did read the member’s guide which said to do something like 5% for each alert. But since there are a whole lot of alerts from the past still posted, what do you guys think of buying some of those as long as the price is still lagging below the target? The guide merely says to buy as close to the alert time as possible.

Janis Bell

10/12/16 ‐ 1:47pm ET October 12, 2016 at 1:47pm ET

I’d like to hear advice on what to do if a stock price is rising as I put in my order. I was concerned that I might end up paying too much doing a market order, so I did a limit order, but by the time I clicked through, the price had gone up .02 pts above my offer, which was a little over the previous sales price. If it goes down again today, I guess I’ll get it. Anyone found a good way to deal with this?

black arrow

10/12/16 ‐ 2:22pm ET October 12, 2016 at 2:22pm ET

I don’t know what broker you use Janis , but here again they are happy to help you call up the trade desk, and tell them what you want to do. In TD Ameritrade I go to an area that allows me to edit the price. I’d try calling them

black arrow

10/12/16 ‐ 2:32pm ET October 12, 2016 at 2:32pm ET

you also want to be aware of writing or selecting GTC – read good til cancelled and I find if its 2 cents my broker will give me the better price.

Janis Bell

10/26/16 ‐ 5:49pm ET October 26, 2016 at 5:49pm ET

Anyone know when that report is expected?

Dramatic License

10/26/16 ‐ 5:54pm ET October 26, 2016 at 5:54pm ET

It looks like it is already out and the news was very good from what I can tell. There hasn’t been much for after hours movement, however.

black arrow

10/27/16 ‐ 7:32am ET October 27, 2016 at 7:32am ET

That is ‘dramatic’ when we see a top/bottom beat
it can give our stock some feet.

Dramatic License

10/26/16 ‐ 5:56pm ET October 26, 2016 at 5:56pm ET

http://finance.yahoo.com/news/lemaitre-tops-street-3q-forecasts-215136176.html

black arrow

10/27/16 ‐ 10:32am ET October 27, 2016 at 10:32am ET

Hi Jim,
This was below the desired goal but I figured it was earnings driven so I sold my shares of LMAT I noticed the ‘wick’ at top of candle was growing, which for you candle students means the price is dropping, Wow guess my timing was a bit off now its up 13.46%.
Regardless, this is great news for me .
Thanks so much!

Guest User

10/27/16 ‐ 10:49am ET October 27, 2016 at 10:49am ET

Hello Jim what is the target price of this stock (LMAT).

Thank you.

Jim Pearce

10/27/16 ‐ 11:00am ET October 27, 2016 at 11:00am ET

The Target Price for LMAT is $25.20 (btw, you can see the target prices for all positions in the Open Trades portfolio table: http://www.investingdaily.com/systematic-wealth/portfolio/dynamic/open-trades/). Thank you.

Guest User

10/31/16 ‐ 12:25pm ET October 31, 2016 at 12:25pm ET

Hello Jim,

Will all the negativity surrounding Biotech and Drug Manufacturers industry prior to election bring down the Healthcare Sector? if so, how bad will this affect LMAT even tho i understand they are more of a supplier of medical instruments but still in the Healthcare Sector.

Thanks

Jim Pearce

10/31/16 ‐ 1:09pm ET October 31, 2016 at 1:09pm ET

That’s a valid concern, but difficult to quantify in the case of LMAT since it is such a small company (market cap = $392 million) so it shouldn’t be directly affected by index trading on the healthcare sector. That aside, I think LMAT is a buyout candidate regardless of overall market sentiment. Someone like JNJ could buy them out of petty cash, and nobody would even notice (except us!).

Guest User

10/31/16 ‐ 1:31pm ET October 31, 2016 at 1:31pm ET

LOL @ except us!!!. Thank you again.

Cheers

black arrow

11/09/16 ‐ 1:11pm ET November 9, 2016 at 1:11pm ET

Hi Jim,
Right now someone just bt 500 shares of LMAT. Its touching the upper Bollinger Band. Its at about 22.11 early this afternoon.
Cheers

Jim Pearce

11/09/16 ‐ 4:08pm ET November 9, 2016 at 4:08pm ET

The Trump victory set off a buying spree in healthcare stocks, so it will be interesting to see if the recent technicals are still applicable. And I still think LMAT is going to get acquired one of these days, but no way of knowing how soon so we’ll cash in if it achieves our target return!

Alpha_Dog_510

11/10/16 ‐ 10:45am ET November 10, 2016 at 10:45am ET

Hi Jim. 17.90% gain for me, that’s very tempting. I’m ready to lock that in.

Jim Pearce

11/10/16 ‐ 12:10pm ET November 10, 2016 at 12:10pm ET

Then you may want to consider placing a stop loss order a little beneath its current price to get you out if it starts to go the wrong way. Of course, you are free to ignore our advice and get out whenever you like, and as the old saying goes “you’ll never go broke taking a profit!”. 🙂

Abhijit D

11/10/16 ‐ 1:36pm ET November 10, 2016 at 1:36pm ET

Haa haa, this is the best comment … ““you’ll never go broke taking a profit!”. ?” … I took my target profit in a semiconductor stock and it went 4% up today. I was like, wish i waited.

Jim Pearce

11/10/16 ‐ 2:16pm ET November 10, 2016 at 2:16pm ET

That’s why I suggest using a stop loss order instead. But don’t beat yourself up over taking a gain and leaving a little money on the table, since there is simply no way of knowing what may happen the next day.

Janis Bell

11/12/16 ‐ 8:56am ET November 12, 2016 at 8:56am ET

I’m still pretty new to this and was wondering about how to lock in the LMAT profit which is now at 19%. Better to sell, or put in a stop loss order GTC for a price a few points below? Do you think this has even more upward potential?

(Apparently, the stop loss orders I put in were Day Only, so I have to do them all again)

black arrow

11/12/16 ‐ 10:46am ET November 12, 2016 at 10:46am ET

Hi Janis,
At first I thought sell Monday before 10 AM because earlier in day first 1/2 hour tends to be when prices are best – read higher – BUT the chart is very strong. I will give you door #2 now. This will be a bit tricky to pull off but you can ask someone from your broker to help you they always want to be helpful. It is called OCO stands for ‘one cancels other’. You basically pick [2] exit prices. I suggest for a low price think of as the stop at 23.50 now for your high price pick 25.00. This is like an insurance policy you want to lose the least amount [23.50] you want to go as closely to the tgt price of our esteemed leader as you can [25.00]. This gives you the best coverage you don’t ‘know” what will happen but you will be ready for either outcome.
http://schrts.co/K3jjOQ Scroll down to CMF Chaiken moolah flow the $$ is in the stock. Why ? Cause Jim picked it using his great system enjoy your weekend and brokers arte even there on weekend do it now – have peace of mind don’t worry be happy
Best Wishes

Janis Bell

11/14/16 ‐ 12:55pm ET November 14, 2016 at 12:55pm ET

Alas, LMAT is now dropping despite what seems like a pretty good report. Why does this make so little sense? What do investors think is wrong with the report?

Jim Pearce

11/14/16 ‐ 1:30pm ET November 14, 2016 at 1:30pm ET

Keep in mind LMAT hit a new 52-week high last week, so a minor pullback is not surprising. Also, the company just completed a major asset purchase (http://finance.yahoo.com/news/lemaitre-vascular-acquires-restore-flow-221500689.html), which will impact its balance sheet in the near term. But overall this is a good deal, and I expect LMAT will resume its upward trajectory once the market has a chance to digest this news.

black arrow

11/14/16 ‐ 1:52pm ET November 14, 2016 at 1:52pm ET

sometimes traders “BUY the rumor SELL the news” Its confusing to any newer trader.
I was just looking at the chart see the large recent clear candle? !/2 way between open and close is a support area not likely to go below that the number is 22.35 if you want to do OCO use that for your bottom number now. Ito is not under heavy selling so can rebound easily.
hope that helps back to painting some trim fer me outside.
Cheers

Jim Pearce

11/17/16 ‐ 10:22am ET November 17, 2016 at 10:22am ET

This morning I raised the stop loss on LMAT to $23.10 to lock in a gain of at least 10% for everyone (assuming you bought it no more than our maximum limit price of $21). It is currently far above its 50DMA and just below its upper Bollinger Band, so I want to protect our profit in case it encounters any resistance before our target holding period expires.

Larry Johnson

11/17/16 ‐ 11:50am ET November 17, 2016 at 11:50am ET

Good morning, Jim.
I’m out at $24.85
Gain = ($24.85-$19.89)/19.89 = 24.9%
Thanks!!!
LJ

Janis Bell

11/17/16 ‐ 10:36pm ET November 17, 2016 at 10:36pm ET

Are we supposed to get this raise in the stop loss as alerts? emails? I only found out by checking online.

Jim Pearce

11/18/16 ‐ 9:30am ET November 18, 2016 at 9:30am ET

I provide this information as a Stock Talk item so you know how I am managing the portfolio, but I will send out an alert if/when my stop loss point (on the close) is triggered. However, I do not issue an alert since raising the stop price does not result in a new buy or sell recommendation.

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