Sunday, November 16, 2014

Sometimes when you find a good stock and you're fairly sure of it, you need to press your bet. I think that Edward Lifesciences Corp., (Symbol EW), is one of those stocks.

Dow Jones Industrial Average 17, 634.74 (UP) Week ending 11-14-2014

Stanley Druckenmiller and George Soros
When Stanley Druckenmiller was asked about what he had learned from George Soros in Jack D. Schwager's 1992 book "The New Market Wizards , Conversations with America's Top Traders" he responded this:

"I've learned many things from him, but perhaps the most significant is that it's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you are wrong. The few times that Soros has ever criticized me was when I was really right on the market and didn't maximize the opportunity"

So when you're right, and you know you're right, you need to press your bet and take a large position or add to your position. Such is the case with
Edwards Lifesciences Corp. (Symbol EW, $124.50).

Edwards to start with has a one year stock price change for the trailing 12 months of 91.57%. The three year return is 77.05%.

The PEG ratio is kind of wacky because of a large one time earnings quarter so I have seen 2.25 and 0.1625. Also the Return on Equity I have seen 25.30% and 46.99% both of which are very good.

This designer, developer, manufacturer and marketer of products to treat stage cardiovascular disease has annual Revenues of $2.241 Billion with EBITA of 590 Million and annual Net Income of 779.6 Million.

EW operates at a Gross Margin of 74.5% and has an Operating Margin of 22.2%. The Quick Ratio for the company is 3.66 to 1 and the Current Ratio is 4.99 to 1, so very financially healthy.

Earnings per share for 2014 are projecting at $3.39 per share and for next year 2015 it is $3.95 per share. The forward PE is 36.88.
One year EPS Growth 14% and the Earnings for the next 3-5 years is projected at 19%.
The IBD rating on Edwards is 99-82-98 so it is probably a hold rating here. Look for a "buy-in" entry point to get into the stock.

Analysts have 12 Buy ratings on the stock and 11 Hold ratings. 

Insider buying on the stock looks good with 71 Buys and 73 Sells for the year.

So when you get the opportunity to buy this one put your heart and your money into it and bet large like Soros and Druckenmiller would do. 

You may already have some sure winners in your portfolio that you should add money to. Take another look at that also. Demand that your money works hard for you.

Take your best shot,


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