When a stock trades at more than twice the upper limit of what's
considered "normal" for growth stocks in its sector, investors need to
be prepared for some significant volatility. It doesn't appear that
there's anything really wrong with Novadaq Technologies (NVDQ)
other than that this is an emerging med-tech growth story still working
to build up its sales capabilities and with a momentum-driven
institutional investor base.
That operating expense ran high
should surprise nobody who has followed emerging med tech. Placements
continue to look strong and while flat recurring SPY revenue was a
little disappointing, I believe it is a bump in the road. Valuation is
steep here and predicated on major sales and profit acceleration, but
this is an interesting speculative med-tech growth story after this
pullback.
Follow this link for more:
Novadaq On A Good Growth Path, But Valuation Makes It Volatile
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