Wright Medical Group, Inc.s (WMGI)
The Company is a global orthopaedic medical device company specializing in the design, manufacture and marketing of reconstructive joint devices and biologics products.
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There is less momentum, less volume, and less buying going on. We are in the last part of this rally.
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The 1929-1930 equity rally (coming out of The Great Depression) lasted 147 days and the market was up 46%. It has been the same amount of time since the March, 2009 low and we are up about the same percentage. It’s déjà vu (paramnesia), so prepare for a drop of about the same percentage (85%).
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Now that the growth investors are out, this company is available at a better valuation, and will continue to outgrow its peers. Patience required, but will make money in years two and three.
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I cant believe intelligent people will buy something that is worth 85 cents for $27.
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4th Highest PE in CAPS allowed screen 8/1/08
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Look at the 5-year growth since the IPO!!!! They're making sensible acquisitions as well.
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Nice growth, solid products. Very innovative programs, specifically clinical programs, such as the EVEREST device registry. Wright is the first to have one in the US.
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Wright Medical Group, Inc., through its subsidiaries, operates as an orthopedic medical device company in the United States. It designs, manufactures, and markets reconstructive joint devices and biologics products.
* P/E 177
* FWRD P/E 42.71
* .52% Insider Ownership
* Just offered 150m dollars more worth of debt.
Has the market priced in any risk so far? Do they have a monopoly in the biomedical industry?
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Smart Money said so.
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Wright Medical Group, Inc., is a global orthopaedic medical device company specializing in the design, manufacture and marketing of reconstructive joint devices and biologics products. The company operates through Wright Medical Technology, Inc. and other operating subsidiaries. Its reconstructive joint devices are used to replace knee, hip and other joints that have deteriorated through disease or injury. Moreover, the company’s ‘Biologics’ products are used to replace damaged or diseased bone, to stimulate bone growth, and to provide other biological solutions for surgeons and their patients.
The revenue increased by 8% in the fourth quarter of 2006 as compared to the same period in 2005 which represented the fourth consecutive quarter of accelerating sales growth. The company has been working on a turnaround plan and returning operating leverage to their business model which can be seen from their increased margins. The company is consistently adding new products like EVOLVE PROLINE System, a 7.0 Multi-Compression Screw, is the CAROLINA Jones Fracture System and MICRONAIL in its portfolio. These new products are expected to accelerate the company’s revenue growth in the coming future, aided by improved conditions overseas and potential new product launches in the hip, extremity and biologic product categories.
Moreover, the company is going to acquire Darco International Inc.'s reconstructive foot surgery business and plans to launch the entire Darco foot and ankle product portfolio to the U.S. market. It is also estimated that the worldwide orthopaedic industry generated sales will grow by 7%-9% annually over the next three to four years. This is expected to further strengthen the position of the company in the market and boost the revenues and income of the company in the future in turn pushing the stock of the company upwards.
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Long-term prospects are bullish including a multi-million dollar expansion in Arlington, TN.

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