Mad Breakout to $65? Subtle Climb to $60? Quiet Retrace to $53?Oh Novanta. So many possibilities for such a great company. Please forgive the maddening amount of clustered lines. The primary trend line is massive and seemingly unstoppable for a reason. Even though it's gone parabolic, its story is rock solid and almost sexy with everything they have a hand in.
As a leader in medical and advanced, industrial markets, Novanta went through a period of optimization several years ago, is currently in organic growth mode and is accelerating its scale from now until 2020 in order to DOUBLE their annual revenue. Oh, and as of their last public statement, they're still on track to do so. Quality products, leadership and personnel (over 375 engineers), coupled with proprietary technologies and over 400 patents, Novanta maintains a stoic and disciplined M&A schedule in order to maintain its edge and continue to innovate by divesting around 9% of revenue in R&D. The crossover between their sectors is astounding. Organic growth, momentum, acquisitions, a great M&A pipeline and leadership positions across key medical and industrial markets are providing, as Matthijs Glastra said, "...a solid foundation for sustainable, profitable growth." If you want a laser, robotics and high level medical play, this is it.
Hold Novanta long term. Short term, if you're looking to just trade and not invest, there's been some massive momentum up from the previously, consistent levels held all of April. Based on how the stock has bounced off its bottom trend line, it was a good period of accumulation leading up to another spurt of gains towards the $58+ level. If it should shoot past this and hit what could easily be $65 (based off the previous $15+ jumps) sell immediately, because everyone else obviously did, twice.
A retrace back to $53 off this momentum isn't bad and will surely hold or prep for the bounce back up to the $60 range outlined above.
