Anyone have opinions on Masimo Corp?

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Hogwild
Silver Ring
Silver Ring
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Joined: 18 Aug 2015 21:46

Anyone have opinions on Masimo Corp?

Post by Hogwild » 10 May 2017 12:52

Anyone have any opinions on Masimo Corp. (NASDAQ:MASI)? The company seems to have taken a large dive when their latest quarterly results were misrepresented on Associated Press. Their 2016 earnings looked better at face value due to a large tax bill. Adjusting for that one-time gain relating to expenses in the fourth quarter of 2016, their earnings had increased 7.5%. They are guiding slightly higher for 2017.

They are in the medical equipment field, selling non-invasive oxygen and other patient monitoring equipment and technology.

They seem to be a steady revenue grower. The P/B ratio was pretty high, but has come down since the recent price drop. P/E is 14.38 as of today. Their business plan seems to be a small amount of organic growth through efficiencies plus a fair amount of growth by acquisition.

My main concern is the unpredictability of healthcare until we know what's happening with whatever plan Trump and congress implement. I'm thinking of whether it might be worth picking up some shares in the $60.00 range if it continues to show weakness or if the broader market corrects (finally).

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