ABMD; time for another look?

I recall earlier discussions on the board about ABMD, and one of the key takeaways was its excessively high P/S ratio… close to 30 IIRC.

Preceding and completely unrelated to the rest of the market’s broad sell off yesterday, ABMD took their own heart-thumping bump of almost -30%, with a resulting P/S down closer to 10. (In spite of it all, the company DOES remain profitable, one of my own key data points, along with debt free and all that.)

Food for thought: Folks who thought that ABMD was simply priced too rich, but otherwise liked them, might care to take a second look.

A TMF article from today makes a good summary of the Q1 financial results that caused the thumping, with guidance quotes from the CEO:

Abiomed Is Still in the Recovery Ward
Brian Feroldi, The Motley Fool•August 2, 2019

Board contributor HeartMD has made a number of recent posts regarding ABMD. From the vantage point of his first-person experiences, he has generously shared thoroughly detailed reports on the use of Impella, one of ABMD’s highest profile devices. Of his several posts, I have linked just two below. Worth reviewing.

Subject: Why I bought ABMD today Date: 11/13/2018

Subject: Re: ABMD sudden drop Date: 2/4/2019

Long ABMD, albeit with smallish position (<10%)
Considering adding



Valuation alone is no reason to buy a company.

ABMD has lost valuation for a reason, their revenues have been decelerating from 38% Q119 to 15% Q120

Furthermore, ABMD recently revised their yearly guidance down from 17-23% to 15-20%

Please, PLEASE, consider revenue growth in the same context as valuation.

This board is about growth, not value.


Comments from the BB monitored list of about 25 stocks. (Only nine held.)

Yesterday was a day when absolutely everything turned red, except for a single green number. ABMD

Anchoring the list of red was SQ, at -6.8%. ABMD came in at +1.9% (green).

To be sure, the ABMD jump was a direct result of a specific one-time (very good) news report:

(Abiomed Stock Jumps on Good News After Bad Week

Still, the irony abounds. Carry on.

1 Like

anyone still holding ABMD?
I know the 30% growth is at the moment over but still on the paper a good company.

They have claimed there growth will reaccelerate, we’ll see.

One thing about ABMD - there growth is likely to be sticky. The penetration process for them, with a superior product, regulator-y approvals, high success rates, all point to the slow acceptance process in practical medicine. It reminds me of the growth process of Align.

With or without reacceleration, ABMD will double in less than five years and again in less than ten. Profits should grow faster than revenue. Pretty much recession proof, no competitive product or process likely to displace their enterprise on the horizon.


Sorry about spell check “there” = “their”