Opinions David Driscoll
Atrion CorpATRICOMMENTJan 11, 2018
David DriscollStock price when the opinion was issued
As of Aug 20, 2024. Market Open.
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Bought out by another company in August. Asset-light company, where current assets were greater than total liabilities. This type of company is very flexible, allocating cash any way they want.
David DriscollRecently, they announced they were being bought out at $460, which angers him between the stock is worth $600-800. He suspects the aging owners just wanted to retire and get out of the business, so they sold.
David DriscollThey make medical supplies, like lens cases for contact lenses. Shares plunged this year due to high interest rates, so their customers didn't buy much from them. But when those customers finish working through their existing inventory, they will order from ATRI again. Trades at only 20x PE, and pay s a 2.5% dividend, which rising 10% annually except this year.
David DriscollDavid DriscollDavid Driscoll
David Driscoll
David Driscoll(A Top Pick Jan 15/16. Up 44.32%.) A tiny little company out of Texas that makes things in the healthcare sector that nobody else wants to create, such as little catheters, IV tubes, cases for contact lenses, etc. His fear is that this company could get bought out because the CEO is getting into his 60s, and succession would be a risk. He wouldn’t buy at this price as it is a little overpriced. Buy on weakness.
David Driscoll
Small caps tend to be less liquid and therefore may have higher betas, although this one is low at 6.1, because it doesn't trade a lot. It makes all kinds of medical devices that none of the big guys want to manufacture. A good entry point would be around $50. This is one you want to hold for the long run.