Atrium Innovations I became interested by Atrium Innovations in May 2012, when a guy by the name of Giacometti recommended it very strongly. Until then, I had always thought that Atrium was a mediocre company not going anywhere. I noticed because a few years before, around 2008, this same Giacometti had been recommending very strongly a company by the name of Paladin Labs (PLB), also in the health sector, for about a year and the stock wasn't going anywhere. Unfortunately I didn't buy Paladin, and the stock has more than quintupled since then.
That doesn't guarantee anything of course, but that recommendation was made in an article whose title in English could be: Time is on your side. Giacometti was quite bearish about the market in general, and made only one new recommendation: Atrium! In this article, he emphasized the fact that in strong markets, even bad stocks rise, and that you should avoid bad stocks at all times.
Anyway, after listening carefully to the conference call, I am quite confident. It is true that at first sight, one gets the feeling that revenues are growing, but not EBITDA. Even without EBITDA growth, this stock is still quite cheap and debt could (and would) be reduced quite rapidly in my opinion. But it's true that without visible growth and without a catalyst, the stock could languish for quite a while. I also believe there will be visible growth from now on. First, the European results have had a really negative impact, beginning with the exchange rate. But that negative factor can't go on forever! In my opinion, the fact that Europe is now growing is probably the most positive factor of the Q4 report. I am also confident about the initiatives (on the manufacturing side) to increase the profit margin. That coupled with strong growth in sales could lead to very visible, if not spectacular, growth.
Visible growth and a really cheap share could lead to very interesting returns!