Antonio Garufi presented his in-depth investment thesis on Orasure (Nasdaq: OSUR) at Best Ideas 2016.

Orasure is a worldwide leader in oral fluid diagnostics. Its rapid tests range from HCV to HIV in-home kits and substance abuse testing, as well as molecular diagnostics sampling devices. The company has been through tough times as its HIV in-home rapid test, which was supposed to be a blockbuster, did not deliver. Management has also disappointed markets with inflated expectations. Nonetheless, the company runs a good business: growing underlying trends, high gross margins and dominant position in untapped markets. Orasure also trades at low multiples compared to peers in terms of EV-to-revenue and at a sizable discount to intrinsic value, has a 30% ratio of net cash to market value, and generates cash at a growing rate (~3% FCF yield in 2016 growing at ~6.5% in 2018). The company recently broke even, ahead of expectations. Its P&L structure, with high margins and low fixed costs, implies high net income generated for each unit of sales.

About the instructors:

Antonio Garufi is a portfolio manager at Astor Investment Advisors, based in Milan. He has 11 years of experience in finance of which 3 working for JPMorgan in London. He then went on the buyside at Astor where he analyzed and executed investment opportunities across a number of sectors and asset classes, focusing on healthcare. He graduated from Bocconi University in 2005, where he is currently lecturer, has a Phd in Business Administration and attended the Value Investing Program at Columbia Business School.

Members, log in below to access the full session.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form: