AngioDynamics (ANGO)
has been a crappy stock over the long term, with a 10-year annualized
return of only a bit more than 5% and a 15-year annualized return that
is even worse. Over that same period, Medtronic (MDT) would have earned you about 12%/year, Becton, Dickinson (BDX) 15%, and Teleflex (TFX)
close to 23%. And lest you think this is a case of Wall Street losing
the thread, annualized revenue growth at AngioDynamics has been just 6%
over the past decade – well below what the Street typically wants from
smaller med-tech names.
Is AngioDynamics changing
for the better? Management disposed of its lower-margin,
low-to-no-growth NAMIC fluid management business at a solid price and
wants to reinvest in areas with better growth potential like oncology
and thrombus management, and U.S. clinical trials of NanoKnife are
getting underway. All of that is fine, and NanoKnife could still
represent some meaningful upside, but it’s tough for me to get excited
about a med-tech business with core growth in the mid-single-digits.
Continue here:
Real Change At AngioDynamics, Or Just Another Reshuffling Of A Lackluster Deck?
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