Trends, Charts and Exclusive Opinion
Merge Healthcare (MRGE) Vaults on Mass General Deal; China Electric Motor (CELM) Gains on IPO Momentum; PLX Technology (PLXT) Moves Up on Award.
Three SmallCaps that Perform Beyond Expectation
MRGE: New Partnership and a Possible Acquisition Pushes Shares�
CELM: Underwriters Google up extra-Allotment shares
PLXT: NEC Deal opens the Japanese LapTop Market
First up this morning, after a whopping 12%+ gain yesterday, is Merge Healthcare Inc., (MRGE) http://www.merge.com/ currently trading in the $2.27 range on a 3-Month average daily trading volume of 254,457 shares. MRGE is widely held by insiders and institutions. In March of 09 MRGE was trading under $1.50. In late-May, it staged a rally that took it past $4.50. MRGE then pulled a $4-$3-$4 classic �V� and in mid-Nov slowly began a drop that took it into the $2 range. MRGE has a 52-week high of $4.78 set on 07-07-09. MRGE has trailing twelve month revenues of $66+ million. MRGE is a short-term (6 Mo) �Buy� consideration for me. Growth is the reason why. Between partnerships and acquisitions; MRGE is positioning itself for new revenue streams. They will increase its price.
The vault yesterday came from Tuesday�s news that MRGE and Massachusetts General Hospital (that very famous place) have signed a partnership agreement to build a testing environment for new mobile healthcare applications. �The technology has arrived to push medical imaging review and reporting out to mobile devices, and free the radiologist from having ! to be ha ndcuffed in a dark reading room,� said a Mass General official. The �eFilm� product of MRGE fits the bill perfectly. A new application, currently approved for use on an Apple iPod Touch or iPhone, extends the popular eFilm technology into the pocket of a physician.
Also on Monday, MRGEs acquisition of Amicas, a radiology competitor, looked more likely as other bidders have not come forward to better the MRGE offer of $248 million, or $6.05 per share. The closest offer for Amicas was the Thoma Bravo agreement which offers $217 million, or $5.35 per share.
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Next up is China Electric Motor Inc., (CELM) http://www.szmotor.com/ currently trading in the $5.59 range on a 3-Month average daily trading volume of 152,436 shares. CELM just started trading in late-Jan and it seems to like $4.75 to $5 as a floor. It spiked yesterday towards $6 on news that the underwriters of its previously announced public offering of common stock have fully exercised their over-allotment option to purchase 750,000 additional shares of common stock from the Company. The exercise of the over-allotment option brings ! the expe cted total gross proceeds of the public offering to $25.9 million. The underwriters must see future value or they would pass or partially-pass on the extra share allotment. They didn�t. They bought them all. CELM has a 52-week high of $5.25 set on 02-22-10. CELM has trailing twelve month revenues of $77+ million and a corresponding, positive EPS of $088. CELM is a short-term �Buy� for me. Here�s why...
CELM builds micro-motors in China: Motors that operate everything from applications for automobiles, power tools, and home appliances, to consumer electronics. There is a huge market for micro-motors in the world and now with access to the U.S. capital markets, CELM can bring cash to its needs for supply. At the IPO, CELM was hoping to get $6 or $7 a share, but with a weak IPO market, it sold 5 million shares for $4.50 apiece.
Finally this morning is PLX Technology Inc.,(PLXT) http://www.plxtech.com/ currently trading in the $5.38 on a 3-Month average daily trading volume of 201,362 shares. PLXT is widely held by insiders and institutions. PLXT was trading in March of 09 in the $2 range and in April jumped to the $3.50 level. It climbed to $4 and held for about 6-weeks before falling back and essentially finding a floor at $3 through mid-Dec. PLXT then staged a 10-week rally into the $5.50 range. PLXT has trailing twelve month revenues of $82+ million. PLXT has a 52-week high of $5.46 set on 03-03-10. Even at its high, PLXT is a near-term (3 Mo) �Buy� consideration for me. PLXT is on a role... �
On Tuesday, PLXT, a ! global s upplier of software-enriched silicon for the enterprise and consumer markets, became a finalist for the Innovation award given by sector magazine EDN (the acclaimed technology publication read by design engineers worldwide for more than half a century). Even industry �insiders� like this Company. On Monday, PLXT announced that its USB Duet technology was chosen by NEC Personal Products Ltd. (NEC), a leading provider of PCs in the Japanese market. NEC will be first to market with USB Duet-enabled, full-size laptops, offering users unique product features and unprecedented connectivity.
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