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Tactile Systems: Q2 Earnings Continue Value Erosion For Shareholders

Zach Bristow profile picture
Zach Bristow


  • Tactile Systems reported Q2 earnings yesterday with upsides in revenue but a miss at the bottom line.
  • Despite the top-line growth, it printed another quarterly operating loss, adding to a string of losses from bottom up since FY20.
  • Investors have turned to rewarding bottom-line fundamentals in FY22, thus, TCMD displays loose affinity to this premia.
  • We rate the stock a hold and price it at $6.47, expecting it to de-rate further to that range.
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Investment Summary

Portfolio construction in H2 FY22 has shifted away from systematic, index-like strategies to more discretionary mandates to harvest alpha. No longer can investors simply rely on the positive carry from capturing beta on the long side in equities. High-beta, low quality companies

This article was written by

Zach Bristow profile picture
Equity strategist, global equities, at Bernard Family Office. Analyzing market trends to tell investors what's the best investments based on macroeconomic, idiosyncratic factors.Shoot me a message to talk trade ides or portfolio construction. Disclaimer:Please remember to conduct your own due diligence.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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