• IRMD is the only known provider of non-magnetic MRI compatible products in the U.S.
• Its uneven sales history was due to a one time event.
• The company is currently on course for its third consecutive quarter of record revenue.
• The technical picture is correcting and will follow solid fundamentals.
• A potential short squeeze is in the making.

Fellow SA contributor Dennis Chang, said to me "Hey Sergio, I think IRadimed (IRMD) might be worth your attention right now." I respect Dennis' opinion and proceeded to do my own due diligence. I found the stock to be fundamentally attractive, but then I looked at the chart. Yikes!

Data by YCharts

I wondered why the fundamental and technical pictures are not aligned. I did some more digging and bought the stock at today's opening. I asked Dennis to do an update on his 2017 article, IRadimed Corporation, Expansion Could Lead To 100% Upside, With 40% Downside. He laughed before replying that he would love to, but is currently too busy. " Why don't you do it for me?"

It's funny, but we never discussed why we both like this stock and find it a timely opportunity. I think we are likely on the same page and welcome discussion from readers on my conclusions as I take up Dennis' invitation.

I believe that the stock price has been in a decline due to:

• Uneven revenue and earnings growth. In 2016 the growth rate came to a halt and declined in 2017.
• Concern about an FDA Warning Letter that remains unclosed.
• Concern about an incomplete European Union inspection.

Investment Thesis

A one time special situation explains the uneven growth and it appears that management has been working with the regulatory bodies to work out the issues. The stock is oversold and presents an investment opportunity based upon the fundamentals. The chart is showing a change in trend is in the making, confirming the fundamentals, and there is a potential short squeeze that could be a catalyst.

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