After a very positive response to the very first StockSlam, in June, we decided to squeeze a second event in before everyone left for the summer. So last Thursday a predominantly new crowd assembled in Central London for ten short but interesting pitches. Personally I thought that all of the presenters did an excellent job getting their thoughts across in 5 minutes, or less, before the audience came up with some very sensible questions.

To give everyone who couldn't make it a flavour of the event Keelan Cooper, an intern at Stockopedia, transcribed an audio recording of the event. This is no easy task and I'd like to thank him for turning this around in less than 24 hours. For the sake of brevity I've edited this transcript to bring out the key points for each presentation. If this proves interesting, and perhaps encourages you to consider pitching at the next StockSlam, then I'll consider the effort worthwhile!

Medica (LON:MGP)

  • IT services company in teleradiology where remote radiologists consult on CAT scans, MRI scans and X-rays
  • at night they can turn these around within an hour, typically within 25 minutes. This service, NightHawk, accounts for 50% of revenues
  • daytime service, 1 or 2-day turnaround, accounts for the other 50% of revenues
  • company has only been listed just over a year or so and IPO'd at around 180p
  • profit warning before the final results due to capacity constraints and lower demand
  • risks associated with the NHS, their main/only customer
  • recruiting radiologists is also difficult as you need good people who want to work remotely
  • despite low value and momentum ranks, the company has high quality metrics with ROCE more than 15%, PEG 0.5-0.6 and they are reducing debt using great cash flows
  • recent trading update cause huge spike in the share price as the company confirmed that it would be trading in-line with expectations
  • Q: Who are their competitors and how much market share does the company have? A: The company does reference the competitors in their annual report but do not specify their market share
  • Q: What is the company going to do about recent reviews which have said automated systems reading scans do it better than doctors can? A: The company has said in its reports that they are looking at AI and doing research on that front, to automate some of the scans and not put radiologists out of service but…

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