Five months ago I wrote a post about Tandem Diabetes Care, Inc titled,
FANG Stocks Don’t Have Nothing On Tandem Diabetes Care, Inc.
Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes various products for people with insulin-dependent diabetes in the United States.
More than 100 million U.S. adults are now living with diabetes or prediabetes, according to a new report released today by the Centers for Disease Control and Prevention (CDC).
Tandem Diabetes Care’s products include t:slim X2 with Basal IQ, t:slim X2 with Control IQ, and the t:sport insulin delivery system and mobile health offerings. Tandem Diabetes Care (TNDM) also sells disposable products that are used together with pumps and are replaced every few days.
This is good because Tandem has penetrated less than 1% of the total addressable diabetes market worldwide. At the time the stock price was trading at $45. The chart suggested to buy on a pull back to the weekly demand at $30.
Price did return to the that weekly demand level, found buyers and hasn’t looked back. and bounced higher,
This past week, shares of Tandem Diabetes Care soared after reporting their quarterly earnings. The company reported fourth-quarter earnings of $3.7 million, or 2 cents a share, from a loss of $11.4 million, or $1.23 a share, a year ago. Revenue rose to $76.2 million versus $40.3 million on the back of a 133% increase in pump shipments to 16,168 units.
I personally don’t think it’s too late to buy the Tandem Diabetes Care with only a 1% penetration. However, the chart suggests to wait for a pull back to the weekly demand at $50 or $43 (I prefer the $43 level).
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.
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