Masimo: Sound Deal Might Not Be Sound

Mar. 16, 2022 6:17 PM ETMasimo Corporation (MASI)26 Comments

Summary

  • Early in February, I believed it was too early to buy Masimo, a high-quality medical technology name.
  • Fast-forwarding six weeks in time, the story is different as shares lost $5 billion in response to a billion-dollar deal.
  • The purchase does not jeopardize the future of the business as investors might be overreacting to a thin strategic rationale.
  • Given all these developments, I see appeal increasing in a rapid fashion here.
  • Looking for more investing ideas like this one? Get them exclusively at Value In Corporate Events. Learn More »

Doctor reviewing patient medical record on digital tablet

Fly View Productions/E+ via Getty Images

On the first day of February, I thought that Masimo (NASDAQ:MASI) was getting a bit healthier after a very fierce sell-off. Shares hit fresh 52-week lows, albeit that it was not alone is appearing on

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The writer is a long term value investor and M.Sc graduate in Financial Markets with over 10 years experience. Value can be found in both long and short ideas and uses options to enhance the risk-return profile of investment ideas. Disclaimer: This article provides opinions and information, but does not contain recommendations or personal investment advice to any specific person for any particular purpose. Do your own research or obtain suitable personal advice.

Disclosure: I/we have a beneficial long position in the shares of MASI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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