Market Read®

  • Friday, July 11 2014

This prediction has passed its maturity date!

This prediction was valid between April 04, 2013 and April 02, 2013. All information in this report is for reference only and should not be considered forward looking.

(NASDAQ: OSIS)

Osi Systems


Bearish

OSI Systems, Inc., together with its subsidiaries, designs, manufactures, and sells specialized electronic systems and components for applications in homeland security, healthcare, and defense and aerospace markets worldwide. It operates in three divisions: Security, Healthcare, and Optoelectronics and Manufacturing. The Security division offers security and inspection systems under the Rapiscan Systems name. Its products are used to inspect baggage, cargo, vehicles, and other objects for weapons, explosives, drugs, and other contraband, as well as to screen people. These products are also used in the verification of cargo manifests for the purpose of assessing duties, and monitoring the export and import of controlled materials. The Healthcare division provides patient monitoring, diagnostic cardiology, and anesthesia delivery and ventilation systems under the Spacelabs name. These products are used in critical care, emergency, and perioperative areas within hospitals, physicians offices, medical clinics, and ambulatory surgery centers. The Optoelectronics and Manufacturing division designs, manufactures, and markets optoelectronic devices under the OSI Optoelectronics name. It also provides electronics manufacturing services under the OSI Electronics name for use in a range of applications, including aerospace and defense electronics, security and inspection systems, medical imaging and diagnostics, computed tomography, telecommunications, office automation, computer peripherals, and industrial automation. In addition, this division designs toll and traffic management systems under the OSI LaserScan name and systems for measuring bone density under the Osteometer name. OSI Systems, Inc. was founded in 1987 and is headquartered in Hawthorne, California.

Investment Highlights

  • PATTERN SCAN predicts the price of OSIS expected to move down in the coming weeks based on the appearance of a 'Broadening Bottom' pattern. Specifically, a DTM Daily Swing Divergence variant of Broadening Bottom has been detected. The target is $51.60. more
  • GATS predicts OSIS will move down in the coming weeks. Target is $54.40. more
  • VALUATION OSIS has a current calculated value of $43.63 which means the stock is overvalued compared to its price of $64.79.

Predictive Range February 21, 2013 - April 02, 2013

Anticipated price movement, between prediction date and target date, based on all market reads.
$60.47 - $53.00

How WealthMakers Market Reads Work:

WealthMakers Market Reads™ provide you with market performance predictions based on proprietary technologies, trading algorithms and data to help you make better, more informed investment decisions. Here's a quick review of our predictive technologies:

  • EARNINGS Most stock price histories show random or unpredictable movements around earnings reports. But some repeat the same pattern quarter after quarter, year after year. Earnings predicts probability, price move and length of move before and after all US stock earnings reports.
  • FRICTION FACTOR Friction Factor is based on the relationship between the price of a stock and the volume at which it's bought and sold. Normal and abnormal Friction factor patterns can help you time your buying and selling decisions for maximum earnings potential.
  • GATS The Global Automated Trading System (GATS) combines neural networks and genetic algorithms to reduce investment risks. GATS selects the highest probability trades in stocks, bonds, options, commodities, currencies and private equities, delivering precise, predictive and profitable data.
  • GROUP SECTOR Certain institutions can exert buying or selling pressure over an entire industry group, pushing prices higher. Group Sector identifies stocks that most closely match their group's movement and generate powerful group consensus trading signals to help you profit from the herd mentality.
  • PATTERN SCAN This technology automatically tracks "Trigger Events" that positively or negatively affect the value of a stock — or its perceived value among analysts — ranging from price fluctuations to natural disasters and political shifts. The results reveal patterns that can predict market movements.
  • EVENTS Events describe the current technical situation in your stock. It displays the technicals, trend conditions and seasonal factors and automatically discovers how that stock has performed in the trading days following the occurrences of the event or combination of events. This technology automatically scans using complex historical queries based on what event is taking place right now in the stock. It then displays the probability, expected return and number of trading days for the expected move.
  • RegSHO NAKED SHORTS SEC Regulation SHO mandates that if a clearing agent holds a fail-to-deliver position for 13 consecutive settlement days, it must purchase securities to close out its position, a.k.a. a forced cover. WealthMakers aggregates data from NYSE, AMEX, NASDAQ, OTCBB and PINKSHEETS to track stocks that are about to have forced covers.
  • SEASONALITY Seasonality analyzes more than 20 years of data to determine if stocks have a long or short seasonal bias, how many trading days the move is expected to last, the probability of that move and the percentage move the stock is expected to make based on the seasonal bias.
  • SQUEEZE TRIGGER Our proprietary database of more than 3,500,000,000 short sale transactions allows us to calculate the exact price at which the total short interest is short in each stock. Squeeze Trigger Alerts let you know exactly when a short squeeze will start and how to trade profitably.
  • VALUATION A stock's value is a function of its forecasted earnings per share and forecasted earnings growth, as well as profitability, interest and inflation rates. Valuation use these metrics to determine at what price a stock is undervalued or overvalued, so that you can make investment decisions accordingly.
  • INSIDER Significant stock sales or purchases by company "insiders" (officers or directors) can be a predictor of future price movements — up or down. The Insider strategy tracks these actions and correlates them with historical data to give you an investment edge.

Pattern Scan

 

Tracks "Trigger Events" that positively or negatively affect the value of a stock.

Osi Systems (NASDAQ: OSIS) is predicted to go down in coming weeks based on bearish technical trends that have appeared in the recent performance of the stock. OSIS has demonstrated Broadening Bottom strategy DTM Daily Swing Divergence with a strength of 5.0/5. The higher the strength, the higher the probability of an accurate prediction.

  • The price of OSIS expected to move down in the coming weeks.
  • PatternScan has detected that a 'DTM Daily Swing Divergence' pattern has appeared.
  • Specifically, a DTM Daily Swing Divergence variant of Broadening Bottom has been detected.
  • This indicates a high probablity that OSIS will move down in the coming weeks.

GATS

 

Reduces risk by selecting the highest probability trades across market indices.

Osi Systems (NASDAQ: OSIS) is expected to go down as bearish signals have been generated by top equity trading strategies. This trading system is designed to identify high probability reversion to mean trading candidates. It looks to go long immediately following strong sell-offs, and goes short after sharp run ups. Its trades are short term and hone in on the irrational decisions of emotional traders around these extreme moves.

  • The price of OSIS expected to move down in the coming weeks.
  • Suggested stop level of 50.73 to limit potential trading losses.

Squeeze Trigger

 

We have a proprietary database of all trading in US stocks and maintain massive databases of short sale and naked short sale time and sales data, along with short squeeze SqueezeTrigger prices. We are the only firm that knows the exact price that a short squeeze will start in every US stock.

The Cumulative Squeeze Trigger price for OSIS is 42.64.

Date Short Volume Short Value SqueezeTrigger
2014-02-28 864214 50834795.908 58.822
2014-01-31 1053705 58401072.7725 55.4245
2013-12-31 3734977 201364561.996 53.9132
2013-11-30 432387 31908431.052 73.796
2013-10-31 929600 69583720.64 74.8534
2013-09-30 443557 32707006.066 73.738
2013-08-31 1001730 71381677.032 71.2584
2013-07-31 938038 63800560.7662 68.0149
2013-06-30 1716040 100287265.244 58.4411
2013-05-31 2443665 144325298.565 59.061
2013-04-30 121566 7432642.4928 61.1408
2013-03-31 1366887 85290741.6486 62.3978
2013-02-28 947980 53028200.038 55.9381
2013-01-31 1571483 101702765.349 64.7177
2012-12-31 745486 46458165.6798 62.3193
2012-11-30 12319 975603.205 79.195
2012-10-31 481285 37328320.2145 77.5597
2012-09-30 640883 48625587.6824 75.8728
2012-08-31 612339 43453841.0943 70.9637
2012-07-31 268521 17090824.608 63.648

Friction Factor

 

Friction Factor determines if there is normal or abnormal behavior in the price action of the stock when compared to the buying vs. selling trading statistics. It shows us how many more shares of buying than selling it takes to move a stock higher by 1 cent, or how many more shares of selling than buying it takes to drop a stock by 1 cent.
Here is how to understand Friction Factor:

  • If Friction Factor is positive, more buying than selling caused OSIS's price to rise
  • If Friction Factor is negative, more selling than buying caused OSIS's price to fall
  • If Friction Factor is 0, there was no discernable activity either way
  • If Friction Factor is abnormal, it means that more buying than selling caused the price to drop which is evidence of manipulative activity. In some cases more selling than buying can cause the price to increase. While this is rare, it must be noted as well. Friction Factor raw data.

Date Change Buy Vol Sell Vol Net Vol Friction
2014-02-19 1.05 231801 287514 -55713 Bullish Bias
2014-02-18 0.0 96282 68461 27821 Bearish Bias
2014-02-14 0.1 97399 84239 13160 1316
2014-02-13 0.1 137406 125942 11464 1146.4
2014-02-12 0.03 160609 139991 20618 6872.666667
2014-02-11 -0.49 130516 111039 19477 Bearish Bias
2014-02-10 0.75 103208 106938 -3730 Bullish Bias
2014-02-07 0.68 131637 118378 13259 194.9852941
2014-02-06 0.47 103712 86313 17399 370.1914894
2014-02-05 -0.53 55609 64782 -9173 -173.0754717
2014-02-04 -0.01 87028 119079 -32051 -32051
2014-02-03 0.02 200131 138450 61681 30840.5
2014-01-31 0.02 200131 138450 61681 30840.5
2014-01-30 1.53 128717 107198 21519 140.6470588
2014-01-29 -0.06 134729 114268 20461 Bearish Bias
2014-01-28 0.84 260830 308519 -47689 Bullish Bias
2014-01-27 -1.82 163996 162676 1320 Bearish Bias
2014-01-24 -1.89 137869 153380 -15511 -82.06878307
2014-01-23 0.47 109644 99614 10030 213.4042553
2014-01-22 0.46 78443 79382 -939 Bullish Bias

Valuation

 

Value is a measure of a stock's current worth. OSIS has a current value of 43.63 per share. Therefore, it is overvalued compared to its Price of $64.79 per share. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease.

General Results

 

Past success in predictions regarding all predictions on the WealthMakers platform.

Our prediction engine has a track record that is second to none. See for our results.

Read Type Avg Return Avg Maturity Days Hits Misses % Accurate
Insider 15.136 73.18 9093 472 95.07%
SqueezeTrigger 12.738 22.37 7780 473 94.27%
Group Correlation 7.341 14.99 1310 87 93.77%
Valuation 14.484 26.96 4201 302 93.29%
Seasonality 7.459 15.21 42599 4123 91.18%
PatternScan 8.449 11.37 133502 19274 87.38%
Events 6.943 11.2 3389 543 86.19%
GATS 5.387 7.94 45083 8534 84.08%
Earnings 8.678 10.28 21689 4352 83.29%
Naked Shorts 14.518 10.83 2232 589 79.12%
Friction Factor 7.501 3.63 5601 1604 77.74%

About Wealthmakers

WealthMakers gives institutional and individual investors an exclusive advantage in making precise, predictive and profitable trading decisions. Our proprietary technologies — Earnings, Seasonality, Squeeze Trigger, Group Sector and GATS — apply artificial intelligence, proprietary algorithms, market data and research to help our clients realize exponential returns. Find out more at WealthMakers.com.

All material herein was prepared by WealthMakers, based upon information believed to be reliable. The information contained herein is not guaranteed by WealthMakers to be accurate, and should not be considered to be all-inclusive. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. WealthMakers is not a registered investment advisor in the State of California. Please consult a broker before purchasing or selling any securities viewed on or mentioned herein. WealthMakers or its affiliates may receive compensation from independent third parties, or from the companies mentioned, for data provided in this report or related services. WealthMakers affiliates, officers, directors and employees do not own shares of the company mentioned in this report, but may from time to time buy/sell the shares discussed in this opinion and may profit from those trades. Market commentary provided by Thomas Ronk, a registered investment advisor and commodities trading advisor in California. WealthMakers will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on his or her judgment.

All Rights Reserved. Copyright 2011 WealthMakers

Overview
Last Price$64.79
52 Week Range$39.00 - $78.50
1 Month Range$61.20 - $68.99
Avg Daily Volume187755.0
PE Ratio36.57
 
Earnings Per Share
YearEPS
2014(E)$1.83
 
Capitalization
Shares Outstanding19MM
Market Capitalization$1343.00MM
 
 

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