As expected, 2015 was a challenging year for Novadaq (NASDAQ:NVDQ)
in many respects. The company had to manage the transition from a
partner-based marketing model to a direct model, as well as a growing
transition from a lease-based model to a capital sales model. The
company has also seen more companies throw their hat into the surgical
fluorescence imaging ring, most especially Stryker (NYSE:SYK).
For all of that, though, I believe the company has done a
good job of managing its sales transition. Management has improved its
communication with the Street and underlying procedure volume growth
looks okay. There's definitely a lot of work left to do in terms of
building the market and establishing a powerful sales trajectory, and
these shares are priced pretty aggressively. I still believe that there
is a money-making opportunity in Novadaq shares, but there are a lot of
uncertainties here and the market will not be forgiving if the sales
momentum stalls.
Read more here:
Novadaq Doing The Heavy Lifting
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