Good morning, If you have questions or anything else on your mind, email and we'll get back to you ASAP.
KEY CALL OUT
We covered a lot of ground on our update call yesterday. The Quad-Factor screen highlighted names on the long side and short side, some we're involved with already, others we have a mosaic of information that makes some more interesting than others. In the presentation we updated TXG NIH grant trends which continue to run weaker than we expected in our bear view. TXG is a good factor short here with fundamentals that look like 2H22 and 2023 estimates are at risk.
ATIP is hitting our process across a few points, with a number of transcripts coming across Stream by Alphasense in the last several weeks and performance bouncing steadily off the bottom. Also, the updated ATIP tracker data came through last night and shows a resumption of Physical Therapists at ATIP locations improving again coming out of Omicron. The turnaround appears to gaining traction while we also see evidence of utilization accelerating into easing compares in the second half of 2022. We'll add the updated ATIP tracker data to our the updated data we presented in yesterday's deck for tomorrow's Morning Brief.
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POSITION MONITOR
CLICK HERE for the updated workbook.
Quad-Factor Screen
ESTIMATE MONITOR
Hospitals/HCA(+), Med Tech/XHE(+), VEEV(+), Biotechnology/XBI(-)
PERFORMANCE MONITOR
ATIP(+) DNA(+), TXG(-), Biotechnology/XBI(-)
FACTOR MONITOR
The performance trend across the key factors are in the presentation linked at the top of this note. Short interest continues to dominate.
NEWS & TRanscripts
CANO: Cano Health Investor Day to Provide Update on Strategy, Operations and Outlook Maintaining guidance, we're skeptical of the affiliate model in a patient population that needs intensive care team effort and focus. (8-K)
BDX (Becton Dickinson): acquires Parata Systems; best performer on XLV. Becton Dickinson (BDX) to acquire Parata Systems for $1.525B in cash. Parata reported revenue of approximately $220M for the last 12-month period. The acquisition expected to enhance BD's long-range targeted profile. No change to FY22 financial guidance. HE: A very small deal, but a positive none the less. (StreetAccount)
HQY reports Q1 EPS $0.27 ex-items vs FactSet $0.26 on revenue $205.7M vs FactSet $204.0M. Adj EBITDA $58.3M vs FactSet $55.7M. FY Guidance (Jan 2023) EPS $1.23-$1.32 vs prior $1.21-1.30 and FactSet $1.27, Revenue $827M-$837M vs prior $820-830 and FactSet $826.1M, Adj EBITDA $249M-$259M vs prior $245-255M and FactSet $251.9M. HE: Positively levered to rates, negatively levered to S&P 500, with employment and recession risk.(StreetAccount)
HOLX: Former Manager Thinks Panther Will Gain Share in the Molecular Segment. Believes COVID testing will remain part of ongoing business. Thinks Panther should be the leading device in molecular diagnostics. Sees HOLX gaining share from RHHBY. (Stream by Alphasense)
CALENDAR
All data available upon request. Please reach out to with any feedback or inquiries.
Have a great day out there!
Thomas Tobin
Managing Director
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William McMahon
Associate
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*Please note, not all Position Monitor names make it into the MicroQuad output - most likely due to a lack of sufficient historical trading and estimate data.
