Q: My wife feels like she has too big a position in WELL for a relatively small company.
She is thinking of selling of some and buying ISRG or else TMDX during what seems an attractive current dip.
She is fine with risk, so is considering ISRG for its growth more than its stability.
Please give your thoughts on the relative outlook for each of these companies in the mid- to long-term.
She is thinking of selling of some and buying ISRG or else TMDX during what seems an attractive current dip.
She is fine with risk, so is considering ISRG for its growth more than its stability.
Please give your thoughts on the relative outlook for each of these companies in the mid- to long-term.
5i Research Answer:
We like WELL for the long term, but it is a small company and many holders remain frustrated. But fundamentals and growth outlook are both good, and we think there is long term potential here, with a good management team. We like TMDX, but the recent momentum shift allows investors a bit more time. We do not think the thesis has changed, it was just a bad quarter and the stock was priced to perfection. Of the three, we do like ISRG best. Not only is it significantly larger, it still has substantial growth possibilities, and it is a global leader ( a near monopoly) in an industry that does not like to change (which is good for it) and it has a defensible moat. Recent earnings were solid as well. It would be our choice of the three.