TMDX: The Risk is Worth Taking

8899Nar
08-24 14:22

I'm 30% invested in $TransMedics Group, Inc.(TMDX)$.

It might look like an oversized position, but I think the risk is worth taking:

• At $70, the stock was absurdly cheap, and the market overpunished it for its investment-heavy focus

• Even after the recent rebound, the company still trades cheap relative to sector averages given its 20%+ growth rate

• Q3 numbers are very likely to impress, with a strong acceleration in growth. Since the market isn't efficient and tends to focus on the short term, I expect the stock to keep climbing over the coming months

• The medtech sector has suffered a lot lately, without much real justification. A lot of funds rotated into biotech, which now trades at clearly richer valuations. I expect capital to start flowing back into medtech over the next few years, lifting valuations after five negative years

AI Companies and Industry DIG
AI is a marathon, not a sprint, it's a mega trend. Please share you Insights or comments on companies or technologies of AI industry.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment