Abiomed Q3 update

I know Saul held up to and exited this stock a year or so ago at the $110, mark but I and I believe a few others held on with the hope for continued 30%+ growth with a keen eye on the St Jude trial data release due end of '16 beginning of '17. St Jude have had their own issues and whilst I top sliced at $130+, I continued to risk holding given the known issues hoping it might buy some time and competitive advantage for Abiomed.

I guess it is cutting it pretty fine now but Abiomed produced the goods in the latest Q and have re-affirmed full year guidance (the Street had been hoping for a raise I assume given the immediate 2% drop after hours). I hope to understand more from the conf call today.

https://uk.finance.yahoo.com/news/abiomed-announces-prelimin…

Ant

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I like this company and its products. International growth is good and Japan has recently been approved. However, to me the stock is not a good value at current prices. Priced for perfection? Therefore I was a recent seller of the stock.

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Same here. Given ABMD commands high valuation, the street was looking for guidance raise. I like the company, so will wait to see if it gets to fair value territory.

hexpert,

What are you considering “fair value territory”?

If my memory serves me right, EPS’s around $1.25/share, and that’s PE of 100 while revenue growth slowed down from 40% to 35% range. (They announced 34% top line growth today so the guidance stays intact)

I understand ABMD’s been enjoying high valuation, since their growth was around 45% last year and high hopes with enormous addressable market. Will have better picture after the presentation tomorrow.

My ABMD trades might have not been consistent with this board but I sense ABMD’s recent price actions can be summarized by this: The price tanks around ER and then slowly rebounds in hopes of high growth and then tanks again because the expectation, as evidently shown in its valuation, is too high. I will take a closer look when it’s PE’s around 80, or the growth picks up.