WAT
Waters Corporation
Healthcare
06/27/2014
Presented
| Date | 06/24/2014 |
| Price | $104.99 |
| Market Cap | $8.90B |
| Ent Value | $8.38B |
| P/E Ratio | 24.04x |
| Book Value | $22.79 |
| Div Yield | N/A |
| Shares O/S | 84.79M |
| Ave Daily Vol | 630,000 |
| Short Int | 3.35% |
Current
| Price | $360.00 |
| Market Cap | $21.37B |
| Waters Corporation operates as an analytical instrument manufacturer in the United States and internationally. The company's Waters division designs, manufactures, sells, and services high performance liquid chromatography, ultra performance liquid chromatography, and mass spectrometry technology systems and support products, including chromatography columns, other consumable products, and post-warranty service plans. This segment’s products are used to detect, identify, monitor, and measure the chemical, physical, and biological composition of materials, as well as to purify a range of compounds. Its products are also used in drug discovery and development, including clinical trial testing, the analysis of proteins in disease processes, nutritional safety analysis, and environmental testing. Its TA division offers thermal analysis, rheometry, and calorimetry instruments, which are used in predicting the suitability of fine chemicals, pharmaceuticals, water, polymers, and viscous liquids for uses in various industrial, consumer goods, and healthcare products, as well as for life science research. The company also develops and supplies software-based products that interface with its instruments. Its products are used by pharmaceutical, life science, biochemical, industrial, nutritional safety, environmental, academic, and governmental customers working in research and development, quality assurance, and other laboratory applications. Waters Corporation was founded in 1958 and is based in Milford, Massachusetts. |
Publicly traded companies mentioned herein: Agilent Technologies (A), Danaher Corporation (DHR), Thermo Fisher Scientific, Inc. (TMO), Waters Corporation (WAT)
Highlights
The presenter sees some significant risks looming for shareholders of life sciences tools manufacturer Waters Corp (WAT) over the remainder of 2014, and he is short shares at present levels ($105). Part of the reasoning for his bearish stance is that – in his opinion – being short WAT is a good hedge for a long position in Thermo Fisher. In addition, the potential for margins to contract and the speculation about a takeover to wane could lead to underperformance.
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