Sachiv's avatar
$421.1k follower assets
Medtech
$SWAV continues to grow top and bottom line. One of the best recs recd and held since 2020. Looking forward to the next few Qs by $ISRG and $INSP, as well as a solid product roadmap execution by $RBOT #medtech #roboticsurgery
Steve Matt's avatar
$1.2m follower assets
$INSP $TMDX $DMTK Earnings: What I'm Looking For
Inspire Medical Systems, Inc. ($INSP) - Reporting Tuesday (5/3) afternoon
"Inspire Medical Systems, Inc., a medical technology company, focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA) in the United States and internationally."

I'm am extremely bullish on this company. They more than doubled their revenue in 2021 (such a big jump partially due to COVID. From 2019, CAGR has been ~69% (nice)) and are expanding their OSA solution to therapy centers rapidly.

Here's what I'm looking for this afternoon.

  • Keep that revenue engine revving. Inspire is facing really tough comps. >50% revenue growth would be great.
  • European adoption of the procedure accelerating. I'm hoping for revenue growth in Europe >40%.
  • They made a big move towards being FCF positive in 2021. They have a strong balance sheet but I'd like to see them be able to fully fund themselves from operations.
  • Management guided for 52-56 new therapy centers each quarter this year. Meet or beat that.
  • Gross profit margins are already pretty great, coming in at 85.7% in 2021. Can we get 86% in 2022?
  • R&D expenses >20% of revenue would tickle my fancy.

Really excited for the future of this company.

Current position:
Total cost basis: 32nd highest in my portfolio
Time since first buy: 0.49 years
Number of purchases since: 1
Annualized return: (48.0%)
Annualized $SPY return: (21.9%)
Annualized $QQQ return: (36.9%)

TransMedics Group, Inc. ($TMDX) - Reporting Tuesday (5/3) afternoon
This was one of my biotech/health care moonshots. For those who don't know, TransMedics has developed a new way to transport donor organs, the aptly named Organ Care System (OCS). Instead of storing and transporting donor organs in an ice chest, OCS is a system that allow perfusing the blood of the donor through the organs which keeps the organ viable for longer periods of time.

They are an early-stage company, although they are generating revenue. They recently moved one step closer to bringing its OCS Heart System to market.(https://commonstock.com/post/78590f76-d5cd-4d0d-91a5-ec9a4b89f965).

Here's what I'm looking for this afternoon.

  • Management is guiding for $52MM in FY revenue at the midpoint. Show me a good start towards beating that.
  • Gross profit margins have been improving year-by-year (12% to 28%to 44% to 59% to 65% to 70% last year). Keep moving in that direction. >73% would be lovely).

Honestly, that's about it. I'm just watching for press releases to see where their studies are at and what's the status with FDA approval. After that occurs, I'll be watching for OCS adoption by hospitals.

Current position:
Total cost basis: 81st highest in my portfolio
Time since first buy: 1.16 years
Number of purchases since: 1
Annualized return: (27.2%)
Annualized $SPY return: 4.1%
Annualized $QQQ return: (0.5%)

DermTech, Inc. ($DMTK) - Reporting Tuesday (5/3) afternoon
This one befuddles me. The technology is seemingly groundbreaking. Their Pigmented Lesion Assay (PLA) test increases melanoma testing accuracy to 90-95% (from 65-85% on existing testing methods) and decreases the chance of missing melanoma from 15-17% to 1%. ONE PERCENT. How have they not gotten every single insurance company onboard? Are you thinking PLA is more expensive than a biopsy? It's not. Per a study published in JAMA Dermatology, the PLA is a cost-savings of $447 ($500 vs $947 for a biopsy). It's also just a patch you put on the mole instead of, you know, slicing a section of skin out for a biopsy. I don't understand. Is it a failure of management to attain widespread adoption? I don't know what else it could be.

Here's what I'm looking for:

  • Revenue growth. Substantial revenue growth. Please, for the love of all that is holy, show me substantial revenue growth.
  • Billable samples were up 86% in 2021 over 2020 but that masks the fact that Q4 and Q3 were basically flat (11,750 in Q2, 11,720 in Q3, 11,780 in Q4). Q1 2022 needs to show a resumption in growth.
  • They went from $16.1MM in sales and marketing expenses in 2020 to $37.6MM in 2021. Keep pumping cash in in that expense. Get the word out. Get insurance carriers onboard.

Current position:
Total cost basis: 75th highest in my portfolio
Time since first buy: 1.24 years
Number of purchases since: 1
Annualized return: (76.1%)
Annualized $SPY return: 3.5%
Annualized $QQQ return: (3.9%)
Steve Matt's avatar
$1.2m follower assets
The Coming Week in Earnings
Woooo boy, this week will be fun for my portfolio.

Monday (5/2)
  • $BIGC^ (On my Sell Watchlist)

Tuesday (5/3)

Wednesday (5/4)

Thursday

Friday

Anything with a ^ indicates I read the 8-K and 10-Q/10-K and track their financials along with KPIs on a spreadsheet I have.

So basically, this will be me next week...
post media

Longest holders

Commonstock is a social network that amplifies the knowledge of the best investors, verified by actual track records for signal over noise. Community members can link their existing brokerage accounts and share their real time portfolio, performance and trades (by percent only, dollar amounts never shared). Commonstock is not a brokerage, but a social layer on top of existing brokerages helping to create more engaged and informed investors.