Seeking Alpha: AngioDynamics Stronger Than It Looks, But Not So Cheap

When AngioDynamics (ANGO) reported last night, it brought a challenging fiscal year to close for this small med-tech company. A combination of weak job growth, higher co-pays/deductibles and uncertainties ahead of the full implementation of the Affordable Care Act have impacted procedure counts, while the company tried to digest a sizable acquisition and restructure its sales approach. All told, the company's performance has looked pretty soft, with rivals likely gaining share in many markets.

Going over the numbers and listening to management's call, though, suggests that the business may have already started to turn the corner. This is still a "show me" story in that regard, and management needs to show that it can regain momentum in the face of larger rivals like Covidien (COV), Edwards (EW) and Bard (BCR). Investors have already started coming back around to this story, as the shares are up almost 30% from their late April lows, and I'm not sure the company can grow fast enough to make today's price a bargain.

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AngioDynamics Stronger Than It Looks, But Not So Cheap