TMDX: The Risk is Worth Taking
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
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