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Abiomed Rose 1% on High Trading Volume

Peter Neil

IHI Gave Up Half of Its Gains from December 1

(Continued from Prior Part)

Mid caps outperform with a minor fall

The mid-cap stocks of the iShares US Medical Devices ETF (IHI) went down marginally by 0.1% and outperformed the IHI large caps, IHI, and the SPDR S&P 500 ETF (SPY), which gave returns of -0.75%, -0.55%, and -1%, respectively. As of December 2, 2015, IHI holds 18 mid-cap stocks in its portfolio with a combined weight of ~19% of IHI’s portfolio. Among 18 mid-cap stocks, eight stocks gave positive returns and ten stocks ended in the red. IHI’s mid-cap stocks include stocks like Dexcom (DXCM), Resmed (RMD), and Teleflex (TFX), which gave returns of 0.05%, -0.05%, and -0.4%, respectively.

The above graph reflects the performance of IHI’s mid-cap stocks in comparison with IHI and SPY. In the first two days of December, IHI’s mid caps have outperformed IHI and SPY with an average return of 1.4% as compared to IHI’s 0.5% and SPY’s -0.05%.

Abiomed rose 1%

Abiomed (ABMD) rose 1% on December 2, 2015. The stock went up on high trading volume. It witnessed trading volumes of ~600,000 shares being traded as compared to the five-day average trading volume of 246,000 shares per day. ABMD closed at $84.72 and was trading 3.8% lower than the 100-day moving average price of $88.05 and was trading 5% higher than the 20-day moving average. ABMD has an RSI (relative strength index) of 52, indicating that the stock is neither overbought nor oversold. ABMD’s trailing-12-month price-to-earnings stood at 29.1x. The book value of the stock is $7.81 per share. With its current price, the stock is trading at a price-to-book value of 10.85x as compared to the fund’s industry average of 6.31x. ABMD has a weight of ~0.8% in IHI’s portfolio.

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