David DriscollColoplast A/SCLPBYTOP PICKAug 21, 2017
Colostomy bags. The demographics are such that gastrointestinal disorders are among the bigger problems dealing with the retirees of the world. If you get a company this size growing this fast without acquisitions you have a good company. They have a history of dividend increases. (Analysts’ target: DKK 553.00).
Makes catheters and colostomy bags. Elective surgeries are coming back. During pandemic, these were paused and medical device companies suffered. Their balance sheet is pristine. Number one in their business. Generate ROC close to 38%. Cost of capital is 6%. Room for R&D to move forward.
Targeting the aging demographic. Challenge has always been its expensive valuation. If it ever goes on sale, he'd probably buy it. You never go bankrupt taking a profit. A great company.
(A Top Pick Jan 13/20, Up 21%) A Danish company specializing in incontinence and other medical products. A good defensive holding. They are expecting to cut revenues by 4-6%, but their margins are remaining strong as they commit to cut costs.
A Danish healthcare company that focuses on wound care, skin care, digestion and other areas. Smart managers continue to focus on R&D--he likes that. Since 2015, they've increased clinical studies by 2.5x and patents by 10x. They've spent free cash flow very well. Revenues have grown 9% annually even during the Great Recession. (Analysts’ price target is $10.74)
(A Top Pick August 21/17, Up 24%)Colostomy bags and catheters, playing the aging demographic. Gained market share in US. Free cash flow is above competitors. Dividend grows about 10-15% per year. Investors go here to hide, so it goes up when markets go down. Buy on a pullback.
Colostomy bags. The demographics are such that gastrointestinal disorders are among the bigger problems dealing with the retirees of the world. If you get a company this size growing this fast without acquisitions you have a good company. They have a history of dividend increases. (Analysts’ target: DKK 553.00).