Thursday, April 19, 2018

Fourth Set of AIM Program Student Equity Pitches on Friday, April 20th - Join Us in Person or On-Line


AIM Class of 2019 Student Equity Presentations - Friday, April 20th

The fourth set of AIM student equity presentations for the class of 2019 will be on Friday, April 20th, 2018. 


 

 Follow the link to review the student equity write-ups.  You can also find every write-up since AIM's inception here.




Location:  Marquette University, College of Business Administration - Straz Hall, 1225 W. Wisconsin Avenue, Milwaukee 53233 - in the AIM Research Room 488, 4th Floor (pdf directions to AIM Room)


  • Date:  Friday, April 20th 
  • Location:  AIM Research Room
  • Presentation Times: 3:00 to 4:00 p.m. CST
  • Link to pdf Student Equity Write-ups
  • If you are unable to attend, you can always view them via the webcast HERE

AIM will again be utilizing Twitter for your comments and questions.  Please follow the instructions below.


How to comment using Twitter:


1.      Go to the MarquetteAIM Twitter account (you can use Search Twitter on your site) and click Follow.
2.     During AIM presentations, go to #AIMpitch and follow the tweets (discussion) on Twitter (it will also be appearing on the Rise Display Board in the AIM Room and on your smartphone)
3.     Tweet your comments and questions during the AIM equity pitches
    • Follow the rules of etiquette for using Twitter during AIM pitches
    • Use the hashtag #AIMpitch to start each tweet
    • Use $TICKER (note: this is called a cashtag and it be should the unique ticker/symbol for the stock that is being presented, ex: $TSLA)
    • Keep you comment short because each tweet is limited to a maximum of 140 characters
    • Example for Tweeting on a student’s Tesla equity pitch (note: the ticker for Tesla is TSLA): #AIMpitch $TSLA How do lower gas prices impact demand for electric cars? 


Thursday, April 12, 2018

Third Set of AIM Program Student Equity Pitches on Friday, April 13th - Join Us in Person or On-Line


AIM Class of 2019 Student Equity Presentations - Friday, April 13th

The Third set of AIM student equity presentations for the class of 2019 will be on Friday, April 13th, 2018. 


 Follow the link to review the student equity write-ups.  You can also find every write-up since AIM's inception here.


Location:  Marquette University, College of Business Administration - Straz Hall, 1225 W. Wisconsin Avenue, Milwaukee 53233 - in the AIM Research Room 488, 4th Floor (pdf directions to AIM Room)
  

AIM will again be utilizing Twitter for your comments and questions.  Please follow the instructions below.

How to comment using Twitter:

1.      Go to the MarquetteAIM Twitter account (you can use Search Twitter on your site) and click Follow.
2.     During AIM presentations, go to #AIMpitch and follow the tweets (discussion) on Twitter (it will also be appearing on the Rise Display Board in the AIM Room and on your smartphone)
3.     Tweet your comments and questions during the AIM equity pitches

 

    • Follow the rules of etiquette for using Twitter during AIM pitches
    • Use the hashtag #AIMpitch to start each tweet
    • Use $TICKER (note: this is called a cashtag and it be should the unique ticker/symbol for the stock that is being presented, ex: $TSLA)
    • Keep you comment short because each tweet is limited to a maximum of 140 characters
    • Example for Tweeting on a student’s Tesla equity pitch (note: the ticker for Tesla is TSLA): #AIMpitch $TSLA How do lower gas prices impact demand for electric cars? 

Congratulations to Donald Smiley for Successfully Defending his Masters' Professional Report!

Investigating Drivers of Performance for Large Capitalization Mutual Funds in the United States

by Donald Anthony Smiley 

On April 11, 2018, Donald Smiley presented his professional report to the faculty of the Graduate School of Management in partial fulfillment of the requirements for the degree of Master of Science in Applied Economics.

Donnie has served as Dr. Krause's AIM program graduate assistant the past two years and the AIM students turned out en masse to support him before his defense. Congratulations Donnie!

Wednesday, April 11, 2018

AIM Feedback Needed - Fintech Survey Enclosed



As the AIM program continues to evolve we would appreciate your feedback on some emerging trends, especially in the area of fintech, to better understand how to prepare the AIM students to be industry ready. 

If you have some time please fill out the survey on the link below by Friday, April 20th.  
Your responses would be greatly appreciated.






Thursday, April 5, 2018

Second Set of AIM Program Student Equity Pitches on Friday, April 6th - Join Us in Person or On-Line


AIM Class of 2019 Student Equity Presentations - Friday, April 6th

The second set of AIM student equity presentations for the class of 2019 will be on Friday, April   6th, 2018. 


 Follow the link to review the student equity write-ups.  You can also find every write-up since AIM's inception here.


Location:  Marquette University, College of Business Administration - Straz Hall, 1225 W. Wisconsin Avenue, Milwaukee 53233 - in the AIM Research Room 488, 4th Floor (pdf directions to AIM Room).   

AIM will again be utilizing Twitter for your comments and questions.  Please follow the instructions below.

How to comment using Twitter:

  1. Go to the MarquetteAIM Twitter account (you can use Search Twitter on your site) and click Follow.
  2. During AIM presentations, go to #AIMpitch and follow the tweets (discussion) on Twitter (it will also be appearing on the Rise Display Board in the AIM Room and on your smartphone)
  3. Tweet your comments and questions during the AIM equity pitches



    • Follow the rules of etiquette for using Twitter during AIM pitches
    • Use the hashtag #AIMpitch to start each tweet
    • Use $TICKER (note: this is called a cashtag and it be should the unique ticker/symbol for the stock that is being presented, ex: $TSLA)
    • Keep you comment short because each tweet is limited to a maximum of 140 characters
    • Example for Tweeting on a student’s Tesla equity pitch (note: the ticker for Tesla is TSLA): #AIMpitch $TSLA How do lower gas prices impact demand for electric cars? 

Tuesday, March 20, 2018

Marquette University Advances to the Americas Regional Finals - CFA Institute Research Challenge


Marquette University has advanced to the Americas Regional Finals of the CFA Institute Research Challenge in Boston which will begin at 4:30 EST this afternoon. 

To view the livestream - click here!

They will be competing against the following teams:
  • Jacksonville University
  • Universidad del Pacifico
  • University of Tennessee at Chattanooga
  • Tufts University

If you are unable to join the live presentations, the sessions will automatically be archived to be viewed at your convenience. 





Wednesday, March 14, 2018

A current AIM Program Small Cap Equity Holding: Tactile Systems Technology, Inc. (TCMD) by: Jack Senft. "Tactile's Good Tactic"

Tactile Systems Technology, Inc. (TCMD, $32.52): “Tactile’s Good Tactic”

By: Jack Senft, AIM student at Marquette University
Disclosure: The AIM Equity Fund currently holds this position. This article was written by myself, and it expresses my own opinions. I am not receiving compensation for it and I have no business relationship with any company whose stock is mentioned in this article.

 Summary

Tactile Systems Technology, Inc. (NASDAQ:TCMD) is a medical technology company that focuses on treating chronic diseases in a home environment.  With improving patient outcomes, Tactile is still able to control rising healthcare costs.

• Recent Flexitouch feedback has come above expectations with it’s full-lunch expected to come by the end of the first quarter 2018.

• Tactile shows salesforce expansion of 20% over the 2017 year.

• 2018 guidance has been updated to over 20% revenue growth, which is in line with Street expectations.

• Increasing product presence among the 4,500 lymphedema facilities in the US.

Key points: Flexitouch Plus, Tactile’s head and neck lymphedema platform, is their top revenue producer that showed strong positive feedback, especially for improved pressure controls.  Since this is the treatment for lipedema, patients are very sensitive pressure, meaning this platform has a gentler setting as opposed to competitors.  Due to not being fully launched until May, alow penetration is normal and Tactile has begun to combat this by the increase in sales representatives.

In the 2017 fiscal year, management hired 160 new sales representatives, equating to 28% growth from the previous year.  With an original expectation of growing the staff at around 20%, this increase in reps could improve productivity and product penetration. Increasing by this volume demonstrates that Tactile will be able to maintain relationships with each lymphedema facility.

Flexitouch, being 93% of Tactile’s total revenue continues to demonstrate growth potential, along with strong gross margins.  Management stated that physician awareness should increase in the near term due to a dedicated sales resources team, and through word of mouth.  With this in mind, management has also increased revenue guidance to 22% growth, as opposed to their old estimates of only around 20%.  Even though this is in line with the Street, this seems to be a conservative estimate where a potential upside is still possible.

In the United States alone there are about 4,500 high-diagnosing lymphedema facilities, where Tactile penetrates about 40% of those.  With an estimated 10,000 physicians in these facilities, Tactile has a great opportunity to increase Flexitouch awareness, especially through a larger salesforce.  Not only this, but Tactile is looking to go deeper into these facilities with more than one high-diagnosing physicians, while also trying to add their products in new facilities.

What has the stock done lately?

Over the past month, Tactile has seen almost a $4.00 increase in per share value.  As this might not seem like a lot per share, this is a 13.88% increase, which is outperforming the market.  Being around the low $30 range, Tactile did see about a 10% decrease that was quickly corrected.  An increase in the stock price should be expected with the full launch of Flexitouch, given the positive feedback.

Past Year Performance: TCMD has increased 63.75% in value over the past year, and the stock should still continue to increase in value. Peaking in around September at $36.79, TCMD has a beta of that close to 1. As there appears to be only one major correction during this period, TCMD is on track to break the 52-week high with new catalysts still coming.


My Takeaway

Flexitouch has a full-launch that is quickly approaching and Tactile is in a great position for large returns, while minimizing risk. Seeing the positive feedback and the increase in salesforce, Tactile is gearing up for the launch.  With management’s increase in guidance for revenue, TCMD maintains a buy status, potentially shooting past their 52-week high especially with the upcoming catalysts. 

Tuesday, March 13, 2018

A current AIM Program Small Cap Equity Holding: AxoGen, Inc. (AXGN) by: Kyran Young. "Don't Be Nerve-ous About AxoGen, Inc."

AxoGen, Inc. (AXGN, $32.95): “Don’t Be Nerve-ous About AxoGen, Inc.”

By: Kyran Young, AIM student at Marquette University 
Disclosure: The AIM Equity Fund currently holds this position. This article was written by myself, and it expresses my own opinions. I am not receiving compensation for it and I have no business relationship with any company whose stock is mentioned in this article.

 Summary

AxoGen, Inc. (NASDAQ:AXGN) produces and markets products to surgically repair peripheral nerve damage (damage to the central nervous system). Their range of products are available in the United States, Canada, the United Kingdom, and several other European countries.

• AXGN’s number of active accounts increased from 452 at the end of 2016 to 591 at the end of 2017, representing a 31% increase. “AxoGen defines an ‘active account’ as an account that has ordered one or more of AxoGen’s surgical products six or more times in the last twelve months”[1]

• AXGN has a 5-year compounded annual revenue growth rate of 40.73%. They currently operate in a net loss; however, this is largely due to high sales and marketing expenses. As they continue to educate and train doctors about their product, those expenses will decrease and they will begin to experience greater profitability.

• AxoGen’s primary driver is the superiority of their products compared to other autografts and nerve conduits. Compared to other products, their Avance nerve graft uses the patient’s own cells to regenerate damaged nerves. In addition, Avance does not require additional surgeries to repair injured nerves.

• Management expects revenues to grow by another 40% and gross margin to remain above 80% in 2018.  

Key points: AxoGen’s four main products (Avance Nerve Graft, AxoGuard Nerve Connector, AxoGuard Nerve Protector, and Avive Soft Tissue Membrane) are mainly used by reconstructive plastic surgeons, hand surgeons, and maxillofacial surgeons. From 2016 to 2017, AXGN’s sales and marketing expenses increased by 32.4%. They hope to increase surgeons’ understanding of nerve repair and expand the usage of their products. As a result of this increased spending, their active accounts have increased by 31% from 2016 to 2017. In addition, they have recently expanded their product portfolio to help with breast reconstruction nerve transfers and oral and maxillofacial surgeries, which increases their overall accessible market to $2.2 billion.

AXGN’s products have a significant competitive advantage over their competitors. According to clinical data, AXGN’s products have an 87% to 94% success rate compared to a 57% to 80% success rate in nerve autografts. AxoGen has displayed this success rate in both simple nerve injuries as well as more complex injuries, such as nerve gaps up to 70 millimeters. Given these results, surgeons are inclined to be more receptive of using their products.  

AXGN had a strong performance in 2017. Revenue increased to $60.4 million, representing a 47% increase, and gross margin increased from 84.3% to 84.6%. They continue to penetrate the market and educate doctors regarding their product. In 2017, they presented 15 national educational programs and hope to present 18 in 2018. On February 27, 2018, DecisionWise International named them the Employee Engagement Best Practices Award Winner. Given AXGN’s past performance and that they are just beginning to scratch the surface in this market, their stock is positioned to climb to new 52-week highs in 2018.

What has the stock done lately?

Over the past month, AXGN is up ~30% and is currently trading at $32.95. This is largely attributable to the 4th quarter earnings release. AXGN beat EPS by $0.01 and revenue by $1.06 million. In addition, they most recently released their annual report for 2017, in which management portrayed optimism moving forward.  

Past Year Performance:

AXGN has increased ~240% over the past year. AXGN has consistently grown the past couple years, and they are positioned well to continue to grow and penetrate their market as they proceed to educate surgeons and provide clinical data proving the superiority of their products to other competitors.  

Source: FactSet 

My Takeaway

Karen Zaderej has served as the president and CEO of AxoGen, Inc. since September 2011. Ms. Zaderej has effectively and efficiently grown AXGN since 2011. Looking forward, it will be important to see how their new breast reconstruction neurotization and their oral and maxillofacial procedures perform. With the introduction of these new procedures, their market has increased from about $1.6 billion to $2.2 billion. The high growth and success of their products have contributed to their large stock price increase. Despite this dramatic increase over the past year, a “buy” is still recommended as AXGN is poised to continue to grow as they become a dominant player in the market.


Source: FactSet