This is short and sweet. I am a doctor, practiced over 18 years. Taking call is miserable. Organs for transplant can only be shipped within 3-4 hours of the donor. Hospitals pay doctors and nurses to stay on call 24/7 just in case an organ becomes available.
Enter TMDX. You can read the website to learn about the tech, but basically a transplant surgeon developed a way to preserve and transport donor organs to long distances. Now you can fly an organ from Alaska to NYC and use it 24 hours later with better results than a donor organ on ice flown 3 hours away. Obviously the value proposition is huge - hospitals save money so transplant surgeons don’t need to be on call; healthcare workers love not having to wake up at 2am and rush to perform emergent surgery; taxpayers save money because a transplant is much cheaper than lifetime dialysis or organ failure care.
Why did the stock go down? Because the company called out seasonality in organ transplants. 3Q is always softer in regards to organ transplant numbers. But the company RAISED 2024 revenue guidance in the last 2Q earnings. They’ve beat earnings estimates 11 times in a row. They just launched their own private jet service to deliver organs to hospitals and the government reimburses them at a profit. The stock is down 30% since 2Q earnings by “analysts” are scared they won’t beat earnings. They will beat earnings because they raised guidance after 2Q and simply pointed out 3Q is always a bit slow.
I’m posting my call option positions but I also own a ton of stock for over a year now. Buy this dip. Bet your wife’s boyfriend’s money. It’s a winner next week. Oct 28 is earnings and Oct 29 call options will skyrocket. $145 and $165 call options 12/20.