As a shareholder, I'm pleased to see that Wright Medical (NASDAQ:WMGI) shares have done well since my last update after third quarter earnings. Management continues to do a good job running this business and there may well be legitimate underappreciated opportunities to outperform on the top line (new product introductions, share gains) and bottom line (better expense leverage) in the next few years.
Even so, it looks as though the Street is moving back to a "what if they get bought out?" sort of mentality, as the shares do seem to be factoring in quite a bit of growth and margin improvement from here. I don't like to bet against good management teams and good product stories, so I'm still content to hold tight with my position in Wright Medical, but I'd be a little more cautious about buying in on the assumption that a big M&A payday is right around the corner.
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Back To The Future With Wright Medical