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Biotech / Medical : SRDX - SurModics - Biotech IPO
SRDX 34.55+2.2%12:18 PM EDT

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From: Lance Bredvold4/27/2022 10:48:11 AM
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Finally selling below $40 after today's earnings report. I had expected the decline much earlier, but somehow optimism in the market as a whole caused the price to stay up despite poor expected earnings on the modified strategy. I'm mostly bothered by failure to report higher income since the idea was to hire their first 4 hot shot salesmen and that they would begin to increase sales. Yes, sales are up to $26mm now which is several mm. better than either last year or last quarter. But they surely don't knock my socks off.

The market has had a major rout and yesterday we were down to about 87% of the S&P500 high (4175/4819) with SRDX showing little consistent weakness. The potential for 2022 is a loss of about $14mm to a small gain if the ABT surveil DCB gets premarket approval. Gary may be trending toward a little more promotional stand as he must defend his decision to, for the first time, borrow significant funds on their revolving credit facility as the attempt to become a device selling company.

Like last quarter, I would like to buy but at a price well below today's. I suppose we could back off the aggressive sales move and go back to being consistently profitable on in vitro and progress payments, but that is unlikely. So, until the new strategy is proven, I expect the stock price to be weak--in fact, to decline from it's current highs. But again, I've found Gary's reports to be factual and sound, his leadership decisions wise, and I'll gamble that SRDX will eventually pull off the strategy he has undertaken.
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