BWS Financial Expects Chindex (CHDX) To Be Added to the Russell 2000

June 4, 2008 8:47 AM EDT

BWS Financial anticipates Chindex International (Nasdaq: CHDX) to be named as a new stock into the Russell 2000 index when the list of adds and deletions is published on June 13, 2008.

Analyst Hamed Khorsand, said, "The shares have advanced since the 2007 rebalancing along with a capital raise, which put the market capitalization of CHDX close to the $300 million level. Based on the amount of index fund capital tracking the Russell 2000 and the market cap of CHDX we arrive at an estimate of $16 million to $18 million in buying required to occur by the end of June. This is equivalent to approximately four trading days worth of volume. The Russell 2000 index inclusion is an added catalyst to the shares at the current moment. The Company is scheduled to report earnings on the 12th, open a clinic in Guangzhou, have their Beijing facilities ready for the Olympics, and very shortly could receive Chinese regulatory approval to sell the S model of the da Vinci surgical system. We view CHDX shares as an attractive buying opportunity given these short-term catalysts for the shares before the end of summer."

Related Categories

Analyst Comments
Trader Talk

Stocks Mentioned

Related Entities

• BWS Financial

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?