Trending Assets
Top investors this month
Trending Assets
Top investors this month
ShockWave Medical ($SWAV) reports Q1 earnings next week
One of my highest conviction holdings. Recent rumors about an acquisition by Boston Scientific hopefully don't come to fruition.
I'm really hoping for commentary on their international expansion and how the acquisition of Neovasc is going so far.
Some visual reminders of where they've come from over the past few years
Revenue by quarter
Gross margin by quarter
EBIT margin by quarter
Net income margin by quarter
Free cash flow by quarter
Losing a great performing stock in a focused business due to acquisition is one of the worst ways to terminate a future compounder. Even if the compensation includes stock in the merged entity, it's never as good because you usually go from a focused pure-play business to one that's more sprawling and has more tentacles.
The acquisition that still upsets us is the Roche buy out of Genentech (it had the best ticker: DNA) in 2009. Genentech was the grandfather of biotech and we had our position for almost a decade before buyout, capturing multi-bagger gains during that period. It was a great deal for Roche, it sucked for the shareholders forced to sell out. Even though we received a decent premium, I still would have preferred to own Genentech stock and watch the business continue to compound returns on the back of its blockbuster drugs. It certainly paid off for Roche.
https://www.forbes.com/sites/greatspeculations/2019/07/10/was-the-47-billion-acquisition-of-genentech-in-2009-a-good-deal-for-roche/?sh=ed87b54a1aa4
@jazziyoung Medtronic’s buying Mazor Robotics is the one that still hurts the most for him. I was so excited for the future of Mazor and to lose my shares less than a year after I first bought them hurt. I don’t want a repeat of that with Shockwave!
@interrobangbros We had a very rude introduction to "acquisition risk" when we overpaid for LinkedIn. We bought LinkedIn on 22 August 2014 for $220.07 per share.
Of course, the share dropped and struggled shortly after we bought it, but we were quite happy to hold on for the long-term knowing there was real monetisation potential of a professional network with additional HR modules and services. LinkedIn was quite good back then and well respected by most HR departments.
Then Microsoft bought it at $196 per share and delisted it on December 2016.
D'oh ... a crystallised loss for us because there was no way the stock would trade back to break-even at $220.07. We're quite wary now of "acquisition risk" whenever the price of a stock we own gets hit.
Already have an account?