Thursday, March 10, 2016

Seeking Alpha: With Wright Medical, It Seems Like Something Always A Little Wrong

That's an admittedly grim opening to an article on Wright Medical (NASDAQ:WMGI), but it does feel like this company has been operating under one cloud or another for quite some time. Prior to the hiring of CEO Bob Palmisano, the company was weighed down with an uncompetitive large joints business and an inefficient sales approach. Then there was a protracted wrangling with the FDA over the Augment biological product. Then there was the acquisition/merger with Tornier that, while promising long-term, wasn't the high-premium buyout that some investors had been counting on. Now there is the risk of product liability payouts, potentially dilutive cash-raising moves, and the regular worries associated with competition and the vagaries of the market.

Maybe there always is something to worry about with Wright Medical, but that's true for most companies and it doesn't stand in the way of my thinking that the shares remain undervalued. It will take some pretty strong performance to justify a fair value in the $20s, but I think this company has the technologies, products, and market foci to generate that growth and make this a worthwhile stock over the long term.

Read the full article:
With Wright Medical, It Seems Like Something Always A Little Wrong

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