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Round 4 New Positions
Round 4 New Positions
ABMD
ABMD has either been in my portfolio or on my high interest watchlist for a long time. ABMD started out as a company that made an artificial heart. This device was only modestly successful, though, and in the early 2000’s ABMD changed its focus to providing circulatory support devices that are primarily used by cardiologists and heart surgeons. In other words, they now provide devices that assist the heart rather than replace it. This new model has been wildly successful for ABMD and since 2011, they have grown revenue and profit significantly every single year. Unfortunately, the stock experienced a major hiccup in late 2019 partially because of a mistake by the FDA that caused the company a major publicity headache. Top-line growth slowed and the share price dropped to 1/3 of its all time high. Even with these setbacks, however, the company continued to grow, and in my eyes, presented a significant buying opportunity. Since bottoming out in March, 2020, the stock has been on a tear, more than doubling from a low of $119 to the current $300 level. Since this is still $150 off its all time high, and since revenue and profit growth are both on track for 9% this year, YoY, there is still a lot of room for share price growth here, and so I’m in with a full position.
DDOG
DDOG makes a monitoring and analytics platform for developers, IT operations teams and business users. Its platform integrates and automates infrastructure monitoring, application performance monitoring and log management. The solutions offered by the company include Financial Services, Manufacturing & Logistics, Media & Entertainment and Gaming among others. DDOG is fairly new to the market with its IPO in 2019. The growth story has been spectacular and is far from over. Since 2017 they have quadrupled their revenue, and although they have not yet achieved profitability, they are well on their way. I like this product and this space, and I’m a sucker for a growth story so I’m in with a full position.
EBS
EBS offers health products to government and healthcare providers through four main business units: vaccines, devices (e.g. nasal sprays, skin lotions, and injections), therapeutics (this includes antibody-based treatments), contract development and manufacturing (bringing treatments to market through collaboration with the pharmaceutical and biotechnology industries and the United States government). It is because of the fourth business unit that I have developed a strong interest in EBS. The growth story has not been that spectacular. However, this company is positioned to play a major role in the delivery of a COVID-19 vaccine. They are not going to be the developer of a vaccine, but because of their close business relationship with the government and because of their existing infrastructure for manufacturing and delivering vaccines, it is very likely that they will be a player once a vaccine is developed. Basically, I’m not betting on THE VACCINE with EBS, I’m betting on A VACCINE, i.e. it doesn’t matter which companies successfully develop a vaccine, I’m betting that whomever it is, EBS will be involved in the manufacturing and deployment processes. I am therefore playing EBS as a COVID-19 play, but only with a half position (I have two other COVID-19 plays).
ETSY
ETSY is an American retailer of handmade goods, vintage items, and crafted goods. Sellers list products on ETSY's platform in categories including clothing and accessories, jewelry, craft supplies and tools, wedding accessories and clothing, entertainment items, home and living, vintage items, and child and baby goods. ETSY has done an excellent job of developing their brand as one of the shopping places for upscale fashion. Their numbers reflect their success as revenue has grown from $75 million in 2013 to $818 million 2019. They have posted YoY revenue growth every single year since 2013, and in the last three years, their profit growth has been spectacular, increasing from $15 million in 2017 to $88.76 million in 2019. The real enticer here is that they are serving a huge potential market that has been estimated to be about $2 trillion. I like the growth numbers, the brand positioning, and the servable market, so I am in with a full position.
FLGT
FLGT focuses on genetic testing to provide physicians with clinically actionable diagnostic information. The testing that FLGT provides offers the possibility of early identification of diseases or the genetic predisposition to diseases which permits enhanced disease treatment and prognosis. The big enticement here is that FLGT is still in the early stages of growth. The growth they have exhibited so far has been spectacular, with revenue growth of 2400% between 2013 and 2019. As a still early stage company, they have not yet achieved profitability, but with their excellent products, solid business model, and huge served market, the future prospects for FLGT are outstanding. This is one of my favorite growth stocks, and I am in with a full position.
MDLA
MDLA is a software company that offers a SaaS platform, the Medallia Experience Cloud, that captures experience data from signal fields emitted by customers and employees. It utilizes AI technology to analyze structured and unstructured data from these signal fields across human, digital and internet of things, or IoT, interactions. The company provides solutions to various industries including Automotive, Healthcare, Hospitality, Insurance and Retail among others. I have liked this company for a while because of their very unique product. The whole idea of their technology is to improve the experience of client customers and employees and they have a suite of four products designed to do just this:
The growth story has been solid at MDLA over the last three years (their IPO was in 2019) with 54% growth in revenue. As an early stage company, they are not yet profitable, but with their spectacular growth numbers, this is only a matter of time. I love the product and the growth story, and so I am in (again), but only for a half position.
OLED
OLED researches, develops, and manufactures organic light-emitting diode, or OLED, technologies for use in displays for mobile phones, tablets, televisions, wearables, personal computers, automotive interiors, and the solid-state lighting market. This is definitely an infrastructure play as I am betting that OLED displays will continue to permeate the market as more and more devices adopt the technology. Remember that the vast majority of screen real estate in consumer products rights now is still LCD. The recent growth story is starting to reflect the move to OLED. After a hiccup in 2018, the company grew revenue from $247 million in 2018 to $405 million in 2019, a phenomenal 64% increase. Even with the COVID-19 impact on the consumer goods markets, OLED is on track to again grow revenue to $429 million this year, a 6% increase. Profit has also grown phenomenally since 2018, increasing 177% in 2019 and on track for an increase of 6% this year. I think the time is right for this stock, so I am in while their is still an opportunity.
REGN
REGN discovers, develops, and commercializes products that fight eye disease, cardiovascular disease, cancer, and inflammation, but I have to thank Paco for clueing me to this stock. The real reason I took an interest in REGN was because of its work on addressing the COVID-19 crisis. REGN is using its end-to-end antibody technologies to develop REGN-COV2, a novel anti-viral antibody cocktail that is being studied for its potential both to treat people with COVID-19 and to prevent SARS-CoV-2 infection. Clinical trials of REGN-COV2 began in mid-June and the clinical program currently consists of three ongoing late-stage trials: two adaptive Phase 1/2/3 trials for treatment of hospitalized and non-hospitalized (“ambulatory”) COVID-19 patients and a Phase 3 trial for the prevention of COVID-19 in uninfected people who are at high-risk of exposure to a COVID-19 patient (such as the patient’s housemate). The Phase 3 prevention trial is being jointly conducted with the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH). The bottom line is that REGN is pretty far along with its development and is very likely to be one of the winners in terms of providing a product for treating and/or preventing COVID-19. So I took a shot here and I am in.
TDOC
TDOC is a virtual health provider with a telehealth platform delivering 24-hour, on-demand healthcare via mobile devices, the Internet, video, and phone. Most of the company’s revenues are generated on a subscription basis (per-member-per-month) and the balance comes from visit fees. Since inception, TDOC has primarily partnered with employers, health plans, and health systems to offer network access to their members, however, most recently, the company has also started to market directly to consumers while expanding its service portfolio. By the description alone, you can probably see why I am interested in this stock. The COVID-19 pandemic has worked to bring companies like TDOC to the forefront as the healthcare system evolves into a new era in which telemedicine will be an integral part of standard medical practice. Even before the pandemic, TDOC’s growth had been spectacular. Revenue grew from $20 million in 2013 to $553 million in 2019, or 2600% in growth over a 6 year period. This year, revenue is on target to top $716 million for a 29% increase in a single year. What’s really exciting is that the U.S. Telemedicine Market size was valued at $6.61 billion in 2019 and is anticipated to reach $17.14 Billion by 2026 with a CAGR of 14.6% during the forecast period. With growth and potential like this, you can see why a growth investor like me is excited about this stock. This is one of my favorite stocks and, once again, I am in.
VCYT
VCYT is a genomic diagnostics company. It provides genomic diagnostic products and services to improve patient care against diseases such as thyroid cancer, lung cancer, and idiopathic pulmonary fibrosis. VCYT was a relatively new addition to my high interest stocks. It popped up on a scan for growth stocks and when I looked at the revenue numbers, liked what I saw. The company has grown revenue of $2.65 million in 2011 to $120.37 million in 2019 or $4400%, with growth every year. When I dug a little deeper into their technology I liked them even more. Basically they are using proprietary machine-learning algorithms to detect genetic patterns specific to each disease they study. This allows them to create products that help medical professionals make more accurate diagnoses, which, in turn, improves patient outcomes. VCYT is truly another company on the cutting edge of a new wave of medicine, and I am in.
Round 4 New Positions
ABMD
ABMD has either been in my portfolio or on my high interest watchlist for a long time. ABMD started out as a company that made an artificial heart. This device was only modestly successful, though, and in the early 2000’s ABMD changed its focus to providing circulatory support devices that are primarily used by cardiologists and heart surgeons. In other words, they now provide devices that assist the heart rather than replace it. This new model has been wildly successful for ABMD and since 2011, they have grown revenue and profit significantly every single year. Unfortunately, the stock experienced a major hiccup in late 2019 partially because of a mistake by the FDA that caused the company a major publicity headache. Top-line growth slowed and the share price dropped to 1/3 of its all time high. Even with these setbacks, however, the company continued to grow, and in my eyes, presented a significant buying opportunity. Since bottoming out in March, 2020, the stock has been on a tear, more than doubling from a low of $119 to the current $300 level. Since this is still $150 off its all time high, and since revenue and profit growth are both on track for 9% this year, YoY, there is still a lot of room for share price growth here, and so I’m in with a full position.
DDOG
DDOG makes a monitoring and analytics platform for developers, IT operations teams and business users. Its platform integrates and automates infrastructure monitoring, application performance monitoring and log management. The solutions offered by the company include Financial Services, Manufacturing & Logistics, Media & Entertainment and Gaming among others. DDOG is fairly new to the market with its IPO in 2019. The growth story has been spectacular and is far from over. Since 2017 they have quadrupled their revenue, and although they have not yet achieved profitability, they are well on their way. I like this product and this space, and I’m a sucker for a growth story so I’m in with a full position.
EBS
EBS offers health products to government and healthcare providers through four main business units: vaccines, devices (e.g. nasal sprays, skin lotions, and injections), therapeutics (this includes antibody-based treatments), contract development and manufacturing (bringing treatments to market through collaboration with the pharmaceutical and biotechnology industries and the United States government). It is because of the fourth business unit that I have developed a strong interest in EBS. The growth story has not been that spectacular. However, this company is positioned to play a major role in the delivery of a COVID-19 vaccine. They are not going to be the developer of a vaccine, but because of their close business relationship with the government and because of their existing infrastructure for manufacturing and delivering vaccines, it is very likely that they will be a player once a vaccine is developed. Basically, I’m not betting on THE VACCINE with EBS, I’m betting on A VACCINE, i.e. it doesn’t matter which companies successfully develop a vaccine, I’m betting that whomever it is, EBS will be involved in the manufacturing and deployment processes. I am therefore playing EBS as a COVID-19 play, but only with a half position (I have two other COVID-19 plays).
ETSY
ETSY is an American retailer of handmade goods, vintage items, and crafted goods. Sellers list products on ETSY's platform in categories including clothing and accessories, jewelry, craft supplies and tools, wedding accessories and clothing, entertainment items, home and living, vintage items, and child and baby goods. ETSY has done an excellent job of developing their brand as one of the shopping places for upscale fashion. Their numbers reflect their success as revenue has grown from $75 million in 2013 to $818 million 2019. They have posted YoY revenue growth every single year since 2013, and in the last three years, their profit growth has been spectacular, increasing from $15 million in 2017 to $88.76 million in 2019. The real enticer here is that they are serving a huge potential market that has been estimated to be about $2 trillion. I like the growth numbers, the brand positioning, and the servable market, so I am in with a full position.
FLGT
FLGT focuses on genetic testing to provide physicians with clinically actionable diagnostic information. The testing that FLGT provides offers the possibility of early identification of diseases or the genetic predisposition to diseases which permits enhanced disease treatment and prognosis. The big enticement here is that FLGT is still in the early stages of growth. The growth they have exhibited so far has been spectacular, with revenue growth of 2400% between 2013 and 2019. As a still early stage company, they have not yet achieved profitability, but with their excellent products, solid business model, and huge served market, the future prospects for FLGT are outstanding. This is one of my favorite growth stocks, and I am in with a full position.
MDLA
MDLA is a software company that offers a SaaS platform, the Medallia Experience Cloud, that captures experience data from signal fields emitted by customers and employees. It utilizes AI technology to analyze structured and unstructured data from these signal fields across human, digital and internet of things, or IoT, interactions. The company provides solutions to various industries including Automotive, Healthcare, Hospitality, Insurance and Retail among others. I have liked this company for a while because of their very unique product. The whole idea of their technology is to improve the experience of client customers and employees and they have a suite of four products designed to do just this:
- Customer Experience (CX): This is Medallia's flagship product, which enables enterprises to manage their relationships with customers throughout their lifecycle.
- Business Experience (BX): This product suite is designed to increase value and loyalty for customers who primarily do business with other businesses (B2B).
- Employee Experience (EX): This software helps enterprises gain insights into their employees' experiences so they can improve engagement and create a high-performance corporate culture.
- Product Experience (PX): This product suite enables enterprises to gain insights into every aspect of the product life cycle so they can build better products.
The growth story has been solid at MDLA over the last three years (their IPO was in 2019) with 54% growth in revenue. As an early stage company, they are not yet profitable, but with their spectacular growth numbers, this is only a matter of time. I love the product and the growth story, and so I am in (again), but only for a half position.
OLED
OLED researches, develops, and manufactures organic light-emitting diode, or OLED, technologies for use in displays for mobile phones, tablets, televisions, wearables, personal computers, automotive interiors, and the solid-state lighting market. This is definitely an infrastructure play as I am betting that OLED displays will continue to permeate the market as more and more devices adopt the technology. Remember that the vast majority of screen real estate in consumer products rights now is still LCD. The recent growth story is starting to reflect the move to OLED. After a hiccup in 2018, the company grew revenue from $247 million in 2018 to $405 million in 2019, a phenomenal 64% increase. Even with the COVID-19 impact on the consumer goods markets, OLED is on track to again grow revenue to $429 million this year, a 6% increase. Profit has also grown phenomenally since 2018, increasing 177% in 2019 and on track for an increase of 6% this year. I think the time is right for this stock, so I am in while their is still an opportunity.
REGN
REGN discovers, develops, and commercializes products that fight eye disease, cardiovascular disease, cancer, and inflammation, but I have to thank Paco for clueing me to this stock. The real reason I took an interest in REGN was because of its work on addressing the COVID-19 crisis. REGN is using its end-to-end antibody technologies to develop REGN-COV2, a novel anti-viral antibody cocktail that is being studied for its potential both to treat people with COVID-19 and to prevent SARS-CoV-2 infection. Clinical trials of REGN-COV2 began in mid-June and the clinical program currently consists of three ongoing late-stage trials: two adaptive Phase 1/2/3 trials for treatment of hospitalized and non-hospitalized (“ambulatory”) COVID-19 patients and a Phase 3 trial for the prevention of COVID-19 in uninfected people who are at high-risk of exposure to a COVID-19 patient (such as the patient’s housemate). The Phase 3 prevention trial is being jointly conducted with the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH). The bottom line is that REGN is pretty far along with its development and is very likely to be one of the winners in terms of providing a product for treating and/or preventing COVID-19. So I took a shot here and I am in.
TDOC
TDOC is a virtual health provider with a telehealth platform delivering 24-hour, on-demand healthcare via mobile devices, the Internet, video, and phone. Most of the company’s revenues are generated on a subscription basis (per-member-per-month) and the balance comes from visit fees. Since inception, TDOC has primarily partnered with employers, health plans, and health systems to offer network access to their members, however, most recently, the company has also started to market directly to consumers while expanding its service portfolio. By the description alone, you can probably see why I am interested in this stock. The COVID-19 pandemic has worked to bring companies like TDOC to the forefront as the healthcare system evolves into a new era in which telemedicine will be an integral part of standard medical practice. Even before the pandemic, TDOC’s growth had been spectacular. Revenue grew from $20 million in 2013 to $553 million in 2019, or 2600% in growth over a 6 year period. This year, revenue is on target to top $716 million for a 29% increase in a single year. What’s really exciting is that the U.S. Telemedicine Market size was valued at $6.61 billion in 2019 and is anticipated to reach $17.14 Billion by 2026 with a CAGR of 14.6% during the forecast period. With growth and potential like this, you can see why a growth investor like me is excited about this stock. This is one of my favorite stocks and, once again, I am in.
VCYT
VCYT is a genomic diagnostics company. It provides genomic diagnostic products and services to improve patient care against diseases such as thyroid cancer, lung cancer, and idiopathic pulmonary fibrosis. VCYT was a relatively new addition to my high interest stocks. It popped up on a scan for growth stocks and when I looked at the revenue numbers, liked what I saw. The company has grown revenue of $2.65 million in 2011 to $120.37 million in 2019 or $4400%, with growth every year. When I dug a little deeper into their technology I liked them even more. Basically they are using proprietary machine-learning algorithms to detect genetic patterns specific to each disease they study. This allows them to create products that help medical professionals make more accurate diagnoses, which, in turn, improves patient outcomes. VCYT is truly another company on the cutting edge of a new wave of medicine, and I am in.
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