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

Trinity Biotech Getting A Head-Of-The-Class Multiple

Fellow Seeking Alpha contributor Paul Nouri made a very solid call naming Trinity Biotech (NASDAQ:TRIB) a Top Idea back in late June, as the shares have risen about 60% since then. While I do like this under-followed Irish diagnostics specialist, I have to wonder if the stock has gone too far too fast. Even if I assume uncommonly high free cash flow margins and that the company captures one-third of the troponin and BNP testing markets, the numbers just don't work for me right now.

Building From A Solid Base

I'll get to the growth part of the Trinity story soon, but it's well worth noting that Trinity is no one-trick pony and has a strong base diagnostics...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details