Boule Diagnostics – Adding a MedTech-company to the portfolio

Boule Diagnostics – Adding a MedTech-company to the portfolio

Initiated a position in Boule Diagnostics at 49.50 SEK on 1 October 2019. In this post you’ll find a short intro to the company and the reason why I added a MedTech company to my portfolio.

About the company: Boule Diagnostics AB is a global diagnostics company that develops, manufactures and markets instruments and consumable products for blood diagnostics. The company serves hospitals, clinics, laboratories and companies within blood diagnostics, in both human and veterinary haematology. Haematology (first difficult word) is the study of the physiology of the blood.

Boule operates mainly in the decentralised haematology segment, which consists of smaller hospitals, clinics, laboratories and healthcare centres.

Megatrend: Growing total world population, increased age of world population (geriatric, second difficult word), increased digital analysis of blood tests (accuracy and speed of analysis) and humanisation of pets are all megatrends in which the company will benefit from.

The video below is from a company presentation in September, and gives a lot of information about the company, future prospects and their products.

Dividend: Currenctly trading at a low yield, 1.2 % as per 1 October, but the past dividend growth and expected future dividend growth is great. I did not invest in the company solely based on the dividend prospects, as I believe most of the expected total annual returns will come from earnings growth (expect 7% CAGR going forward) and a multiple expansion due to the depressed share price the past year.

Source: Borsdata.se

Share price: The share price has plummeted due to the american FDA putting their production under scrutiny back in 2018. There has not been any news recently regarding this issue, but there is expected that a clarification will come in Q4 2019. Nevertheless, the share price seems to have bottomed out.

Source: TradingView
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