I wanted to share this idea below as the stock is starting to wake up as we move towards JP Morgan.
SMLR is my top idea for 2020 and my largest holding. A very good writeup from shareholder NYC hedge-fund GCI Partners is attached here and I have permission to forward it.
I think SMLR shares offer a unique opportunity for two reasons:
1) SMLR has an incredible business model (98% recurring revs, 90% GM, very low penetration rates, no capex needs, huge incremental margins, big FCF). The company is firing on all cylinders right now (recent 3Q results saw accelerating growth of +60% yoy and profits up +110%) and there is ample evidence from leading indicators that indicated business trends should remain outstanding
2) Despite SMLR printing consistently strong results, the shares didn’t move much in 2019 and have been more or less range bound, despite the market for fast growth healthcare names and high quality business models having been exceptionally strong. I believe this is mainly due to the fact the CEO had a stroke in June, and the resulting fear and lack of communication scared away some shareholders and kept potential new ones away. I believe this dynamic is set to reverse and that in 2020 the shares can benefit from simple catch-up off 2019 results and continued strength in 2020 #s. There was no cc for 2Q (results were notable), but there was a cc for 3Q in Nov and next wk the CEO will actually attend the big JP Morgan Healthcare conference (w packed 3-day meeting schedule), so there is a major inflection in communications in place right now- which while I don’t usually care so much about, I think makes a big difference in this case given the circumstances.
The GCI Partners writeup is attached, and fleshes out a lot of the themes I have discussed above while also giving good color on different strains of independent research and leading indicators at the customer level, the hiring level and in the cash flow statement along with some impressive valuation analysis. It’s definitely a worthwhile read. Let me know if you would like an introduction to the company- I am not the IR rep, but I have a solid relationship w the CEO.
Name on “Flop Wall” for 18 hole course • Name promoted during the 1 hour LPGA clinic prior to
shotgun start • Name Promoted on the 18 hole course via LPGA pro wearing company logo/branding
at the “Challenge the LPGA Drive Competition” • LPGA pro wearing company logo/branding as she
golfs one hole with 18 of the teams/18 holes) • EMCEE announcement • Banner Listing during
registration • Banner Listing during dinner
As Brett Maas content team we get to see some of the really generous and nice things Brett does to give back. One of them is when he received and email from a friend and it states…
Once again, I am asking for your help. For the seventh year in a row, I am riding in the Trek 100, a Ride for Hope.
Please consider joining the fight against childhood cancer and related blood disorders. I am riding in the Trek 100 Ride for Hope which supports the MACC Fund. This is a ride truly for hope. Proceeds from this ride will help support critical research efforts in the search for new cures and in the eradication of childhood cancer and related blood disorders. The overall cure rate stands at 80%, but with your help, we will get to 100% — one pedal at a time.
Sam, my son, was diagnosed with osteosarcoma in January 2009. Because of the efforts of the MACC Fund, the survival rate for Sam has increased to 80% from 15% when the MACC Fund began over 30 years ago.
Needless to say Brett was quick to help support a friend, his son, and a great cause. Also, if you read this and they are still raising money to help cure childhood cancer you can donate here.
So Bill Simmons and ESPN are splitting up. What the fuck?! We asked around at the Worldwide Leader to get water-cooler reactions to the news. This is what we got from our sources at ESPN and Grantland.
By Ryan Vlastelica
NEW YORK (Reuters) – Stocks fell for a second straight day on Tuesday after the Federal Reserve gave no hints of new stimulus measures to offset the effects of the worsening European debt crisis.
Though the Fed did leave the door open to further easing next year, as it has done after recent meetings, it gave no indication it was any more inclined to provide new economic stimulus.
The Fed left monetary policy on hold and said financial market turbulence posed threats to economic growth. It also characterized the U.S. economy as expanding moderately despite an apparent slowing in global growth, though it added that unemployment remains elevated and housing activity depressed.
The Fed “gave the economy a very slight upgrade, but it sort of took the wind out of domestic equities, probably because some were hoping that they would hint at another -like program,” said Robert Phipps, a director at Per Stirling Capital Management in Austin, Texas.
LeBron has said for years that he wants to become a global icon on the order of Michael Jordan. And while reaching that level of fame will probably always depend most on whether or not he becomes an NBA champion several times over, business decisions like this one (and, in a more minor sense, the web cartoon series he premiered Wednesday) position him to reach out to an unprecedented number of fans. In return, he will likely help give Liverpool a larger profile among budding fans of European football in America.