Semler Scientific: Not Perfect But Worth Considering

Summary

• SMLR has a competitive product (QuantaFlo) in the cardiovascular diagnostic space, and is currently awaiting a 510(k) clearance for expanded use, which could potentially arrive in H2-24.
• Semler's cash generating prowess has picked up over time, and currently 73% of its asset base consists of cash alone.
• P/E Valuations are cheap, and buyback momentum is likely to step up.
• The phasing in of a new Medicare Advantage (MA) risk adjustment model (versus the 2020 version) is expected to dampen enthusiasm for QuantaFlo from MA plan sponsors.
• We like the reward to risk equation on the charts, and Semler could benefit from additonal rotational interest given its low relative strength ratio vs other healthcare options.

Hiroshi Watanabe/DigitalVision via Getty Images

Introduction

Semler Scientific Inc. (NASDAQ:SMLR) is a micro-cap stock that is noted in the healthcare equipment space for its diagnostic offerings in treating chronic diseases. Over the last six months, the SMLR stock has faced a wobbly ride and has ended

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