It has taken a little longer than I might have liked, but my bullish call on AtriCure (ATRC)
has been working out pretty well this year, with the shares up more
than 100% over the past year and on a year-to-date basis. I believe the
Street has been responding to a strong uptick in the company's growth
rate, but I also believe that significant management turnover over the
past year or so (including a new CEO, SVP, and VPs of marketing and
R&D) has rebuilt confidence that AtriCure may at last have a winning
strategy.
With the shares having doubled, "now what?" seems like a
fair question. I am hesitant to chase off current shareholders, as
though the stock is certainly not as cheap as it once was, expectations
still don't appear to incorporate major share gains/positions for
AtriCure. These shares do not look all that cheap by DCF or EV/revenue
standards, but as investors have seen in cases like Spectranetics (SPNC) and Cardiovascular Systems (CSII), a renewed faith in a small med-tech's growth can take the shares a long way.
Follow this link to the full article:
AtriCure Finally Getting Its Due
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