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

Baby, Baby, Where Has The Love Gone?

Natus Medical (NASDAQ:BABY) is a case in point as to why I'm always skeptical around growth stories built on rampant M&A activity, particularly when those growth stories are awarded the sort of multiples that go with the strongest organic growth names in the med-tech space. To that end, while Natus had a career-making run through the first decade of this century, the going has gotten a lot tougher post-2008, during which time Natus has lagged another famous (or infamous) growth-by-acquisition story Integra LifeSciences (NASDAQ:IART) and other less-than-stellar performers like Medtronic (NYSE:MDT).

Unfortunately, for Natus longs, I don't see this story getting dramatically better. While I do believe Natus will generate sufficient cash flow to...

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