Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Cardiovascular Systems Could Have A Much Higher Value To A Strategic Buyer

For years, peripheral vascular intervention has attracted companies and analysts like JuneBugs to Bug Zappers, and with similar end results in many cases. While the promise of effectively treating narrowed or blocked arteries in the leg is indeed a potentially multibillion dollar promise, experienced investors have learned just how hard it is to translate that promise into real income and cash flow.

Cardiovascular Systems (NASDAQ:CSII) has gone on this familiar ride. While the company seems to have developed a legitimately better mousetrap, one for which there is strong supporting clinical data, the company has struggled to drive consistent utilization growth and profit leverage. Although I'm somewhat skeptical of the company's ability to generate value for investors on stand-alone...

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