Orthopedics This Week | September 13, 2016 | Page 2

ORTHOPEDICS THIS WEEK
VOLUME 12, ISSUE 29 | SEPTEMBER 13, 2016

2

Orthopedic Power Rankings

Robin Young’s Entirely Subjective Ordering of Public Orthopedic Companies
THIS WEEK: Eight years ago central bankers flooded the markets with liquidity. Last week the Fed said that was nearly over.
The market’s conclusion? Central bankers are out of ammunition or ideas to stimulate economies. This morning Goldman
Sach’s chief U.S. Equity Strategist writes that Goldman’s sentiment indicator, which tracks S&P 500 futures positioning, now
stands at 100—its maximum level: Readings above 90 or below 10 are contrarian indicators that are “significant in predicting
future returns.” Translated: this bull market is about over.
RANK

LAST
WEEK

COMPANY

1

1

Integra
LifeSciences

2

5

3

TTM OP
MARGIN

30-DAY
PRICE CHANGE

COMMENT
IART beat its estimates, raised guidance and is still the
2nd cheapest equity in orthopedics.

14.64%

0.23%

ConMed

10.10

5.14

After a disappointing 2nd quarter, buyers are finding their
way back to CNMD largely on the basis of valuation. #1
cheapest equity on the Power Rankings.

9

Globus
Medical

30.58

(1.29)

30% operating profit margins. $335 million in cash on
the balance sheet. Bot Alphatec’s international business.
GMED is in a strong position to accelerate M&A.

4

8

RTI Surgical

6.65

1.29

Upgraded board of directors. Senior management change
in the works. We’ve seen this scenario before. Almost
always results in higher equity prices.

5

3

Medtronic

20.51

(2.77)

BMP2 sales continue to climb. Medtronic Spine will
become the leader in robotics for spine/deformity surgery.

6

2

Exactech

9.20

(2.64)

EXAC has been one of the best performing integrated
orthopedic companies of 2016. Consensus of analysts
is that sales this quarter will be up 4.40%. Will that be
enough for investors?

7

10

Orthofix

8.37

1.81

OFIX has risen from $36 to $47 per share this year. So far
in 2016 management has beat earnings