Author Topic: What are you buying today?  (Read 1479633 times)

DooDiligence

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Re: What are you buying today?
« Reply #4070 on: August 13, 2019, 06:58:53 AM »
Again,


Can I ask for your view on EW and its prospects?  It's not a company that gets a lot of analysis or opinion.

I'm not a very good or diligent analyst & tend to go with my gut on a lot of things. My thoughts on Edwards will be riddled with bias based on the fact that it has been the single most successful investment I've ever made.

I bought Edwards back in 2013 when they were going through a patent dispute over the TAVR (trans-aortal valve replacement) with Medtronic.

They prevailed in the suit & have since made acquisitions which got them into mitral with the PASCAL & Cardioband products. Mitral is proving to be much more difficult but has more potential patients.

Their main product is tissue vales & they also offer the newer minimally invasive trans-catheter products. The pivotal acquisition which got them into the Sapien market was done at a quarter of what Medtronic paid to acquire the same technology.

The minimally invasive Sapien valve replacements are approved for use on patients who can't tolerate having their chests opened for a traditional procedure & recently the company's Sapien valve has expanded its indication to include the intermediate risk pool, and is expected to include low surgical risk patients soon.

Continued domination of the tissue valve market & the expansion of indications to lower risk patients & eventual (maybe) mainstream use of minimally invasive valve replacements are what I pin my hopes on..

Sales reps are highly trained & sit in on procedures. I remember reading something that said they tied sales reps compensation to successful procedures instead of sales volume but this may be faulty memory as I can't find any reference.

Gross margins have increased steadily.

I like that they rely more on organic growth.

Slow & steady buybacks.

Executive compensation that seems aligned with shareholders. Bonuses are tied to revenue & FCF instead of earnings.

Their main competitors are Medtronic, Abbott & Boston Scientific.

Morningstar has a pretty comprehensive writeup with potential negatives.
Healthcare 20.9% - EW NVO // BRK.B - 22.7% // Auto's & Oil 14.7% - CLB GPC VDE

Banking 10.2% - WFC // Entertainment 4.8% - DIS // Drinkers & Smokers 7.0% - MO

Retail 1.5% - ULTA

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%'s held @ MV 11/29/2019 minus 18.2% investable cash

i trumpet my ignorance

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villainx

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Re: What are you buying today?
« Reply #4071 on: August 13, 2019, 08:26:09 AM »
Again,


Can I ask for your view on EW and its prospects?  It's not a company that gets a lot of analysis or opinion.

I'm not a very good or diligent analyst & tend to go with my gut on a lot of things. My thoughts on Edwards will be riddled with bias based on the fact that it has been the single most successful investment I've ever made.

....

Thanks!  I've been looking at it for awhile, but haven't gotten super comfortable yet.

DooDiligence

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Re: What are you buying today?
« Reply #4072 on: August 13, 2019, 08:31:38 AM »
Again,


Can I ask for your view on EW and its prospects?  It's not a company that gets a lot of analysis or opinion.

I'm not a very good or diligent analyst & tend to go with my gut on a lot of things. My thoughts on Edwards will be riddled with bias based on the fact that it has been the single most successful investment I've ever made.

....

Thanks!  I've been looking at it for awhile, but haven't gotten super comfortable yet.

I think the price is way too high ATM & I sell a little every now & then to keep the allocation down.

It just keeps going up.
Healthcare 20.9% - EW NVO // BRK.B - 22.7% // Auto's & Oil 14.7% - CLB GPC VDE

Banking 10.2% - WFC // Entertainment 4.8% - DIS // Drinkers & Smokers 7.0% - MO

Retail 1.5% - ULTA

---

%'s held @ MV 11/29/2019 minus 18.2% investable cash

i trumpet my ignorance

https://twitter.com/tunawish

BG2008

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Re: What are you buying today?
« Reply #4073 on: August 13, 2019, 09:07:00 AM »
GRIF

Broeb22

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Re: What are you buying today?
« Reply #4074 on: August 13, 2019, 12:55:38 PM »
CVET

TwoCitiesCapital

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Re: What are you buying today?
« Reply #4075 on: August 13, 2019, 01:11:10 PM »
Cash.

Following the sale of 20% of my S&P 500 puts. Waiting for 30+ VIX to sell more.

Repurchased put positions.

Ahab

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Re: What are you buying today?
« Reply #4076 on: August 13, 2019, 01:51:30 PM »
PCG puts, wish me luck.
Long: FNMAT, FNMAN, FMCCL, FMCKO, BAC, JPM, GOOG, JD, MO/PM
Short: PCG, TSLA
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Foreign Tuffett

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Re: What are you buying today?
« Reply #4077 on: August 13, 2019, 03:11:49 PM »
PCG puts, wish me luck.

Could you share your thesis for this trade?

Ahab

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Re: What are you buying today?
« Reply #4078 on: August 13, 2019, 03:56:06 PM »
I think the market is being far too optimistic about the equity value that remains for current shareholders. PG&E needs a lot of capital both to invest in the business and resolve legal liabilities. Moreover, the market may be underestimating the amount of money that needs to go to fire victims (i.e the ongoing dispute over the cause of the Tubbs fire). Ultimately, my base case is that a creditor plan wins out and they extract a large share of the equity.

« Last Edit: August 13, 2019, 04:45:56 PM by Ahab »
Long: FNMAT, FNMAN, FMCCL, FMCKO, BAC, JPM, GOOG, JD, MO/PM
Short: PCG, TSLA
Twitter: AhabValue

Spekulatius

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Re: What are you buying today?
« Reply #4079 on: August 13, 2019, 04:30:22 PM »
CVET

Another “crappola” spin-off. What is the thesis now, since the initial thesis of a software subscription business seems to busted? Or is this thesis still intact in your opinion?
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