Globus Medical (GMED-N)

Being in the medical parts business, it is like Stryker but much smaller. It also has a software machine interface that helps the installation of these parts. Sales have grown about 12% annually over the past 5 years. Also it is an opportunity for Asian demographic tailwinds.

He recommended it around 18 months ago, and it has doubled in price. Drawbacks before: had no international presence and not enough salespeople, but that has turned around, as reflected in the price jump. Earnings growing 10-15% annually. No debt, but pay no dividend. Buy half a position and watch, but don't buy heavily because it may
drop badly during a correction.

Since he recommended this, it’s gone from $22 to $46. This is medical technology for spying related injuries. The stock price has taken off because the company has gotten their act together and has started to move outside of the US. Their sales teams are in place. A lot of their competitors have not been allocating capital towards the spine business. This company just came out with a new robotic invention that will help surgeons do all the spine surgeries. Earnings have jumped up nicely, and he is expecting anywhere from $143-$178 a share over the next couple of years, but we are still seeing the stock trading at roughly 32X earnings. Wait for a pullback or just buy half for the moment.

This is a tiny little $2 billion company that is in robotics of spinal care. Growing at a wonderful rate, but the street hasn’t adapted to them.