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BOSTON (Reuters) – Investment firm PrimeStone is pressing medical device maker LivaNova PLC LIVN.O to consider strategic options including selling parts of its business, refreshing its board and hiring a new finance chief, saying such steps could double its share price.
London-based PrimeStone said that years of underperformance required a new strategic direction and that the company should divest its Cardiopulmonary business, sell or close its Heart Valves business, and consider appointing a new board chairman and hiring a new chief financial officer, according to a letter the investment firm is sending to LivaNova’s board on Monday.
PrimeStone said in the letter, which was seen by Reuters, that LivaNova’s share price could “more than double to $100”, adding: “However, to get there, several changes need to take place.”
The investment firm is urging the company to focus on its Neuromodulation unit.
LivaNova did not immediately respond to a request for
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Wall Street registered back-to-back weekly gains with the S&P 500 and Nasdaq Composite Index seeing their best week since July, and the Dow Jones enjoying biggest weekly rise since August.
The optimism came primarily on the back of prospects for another round of fiscal stimulus from Congress. Per Fox Business News, there were “really good” odds of reaching a deal with Democrats in Congress on a new round of coronavirus stimulus for the battered U.S. economy. A report from the Wall Street Journal stated that Treasury Secretary Steven Mnuchin is drafting a proposal worth $1.8 trillion, closer to the $2.2 trillion package proposed by U.S. House Speaker Nancy Pelosi (read: 5 ETFs Rising as ‘Reflation Trade’ Picks Up on Stimulus Hope).
Additionally, growing expectations of a Democratic victory in next month’s presidential election is driving the stocks higher. Market speculators believe that if the Democrats take the White House and
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One of the simplest investment strategies of legendary investor Warren Buffett is to “be fearful when others are greedy and to be greedy only when others are fearful.” Simplified further, it would imply “buy low and sell high.”
Investors therefore need to figure out strategies or indicators that can help them identify cheap stocks. Be it top-down analysis or bottom-up analysis to find stocks — it ultimately boils down to valuation ratios.
Some relatively complex methods to value companies include the discounted cash flow model and Gordon Growth model. However, there are simple, yet effective methods, to find and invest in cheap stocks.
One of the most commonly used valuation ratios is the price-earnings ratio. In simple terms, the ratio gives the dollars investors are willing to pay in the market for every dollar of the company’s earnings.
Simple, no doubt, but if investors have few tricks up their sleeves,