Cardiac comparisons

I own EW and ABMD now, both of which seem to have the right sort of figures although ABMD’s are a bit too exciting to make safe predictions about future growth and value and there seems to be a question mark over decelerating sales. Relative strength is a bit strange. The main problem with ABMD is the high P/FCF but on the other hand ROIC and growth are high so perhaps it is justified. EW looks better on P/FCF (though still high) and better on OM. Interesting that both have the same high conversion of sales into FCF. ABMD looks as if it has insider-ownership over 7% whereas EW is a paltry < 1%; not what I like to see. I trust EW more as a bit steadier. Both are rather alarming on P/S and if it was not for that inspiring FCFM would be rejected out of hand.

I rather like this corner of the medical market: more crumblies, more, ahem, persons of a fuller figure (one has to be so polite these days and not call them fatties) and therefore, one assumes, much more cardiac arrest. Every cloud, as they say. Actually, I’m on the rat-poison too so these things are not without interest and I can keep the old ticker man up to the mark on latest developments. He’s too busy making money to notice.

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