TMDX: One of My Biggest Winners in my Growth Portfolio

Hello everyone! Today i want to share some trading ideas with you!

1.

Here's a breakdown one of my biggest winners in my growth portfolio 🧐

$TransMedics Group, Inc.(TMDX)$

Introduction

Back in Q3 of 2023, I initiated an overweight position in TransMedics at under $40, as I saw it as a mini-monster revolutionizing the organ transplantation process with its proprietary Organ Care System (OCS). This system preserves organ vitality from donor to recipient -- a breakthrough technology crucial for improving transplant success rates, expanding the availability of viable organs, and ultimately saving more lives

Building on its innovative foundation, TransMedics has recently expanded its operational capabilities by acquiring Summit Aviation in Q3 2023. This acquisition has allowed the company to own a fleet of aircraft, positioning it to build out the largest transplant logistics network in the US. This strategic expansion is set to further widen TransMedics' moat by enhancing its ability to manage and expedite organ transport across greater distances -- thus improving the efficiency and reach of its transplant solutions. TransMedics has a ton of growth runway with ambitious plans to increase its annual transplant operations to 10,000 in the US by 2028.

Logistics Network Expansion

TransMedics' acquisition of Summit Aviation marked an inflection moment in their business -- transforming its business model by integrating a comprehensive logistics network similar to strategies employed by $AMZN in the US and $MELI in LATAM. This move not only enhanced TransMedics' transportation capabilities by growing its aircraft fleet and pilot crew but also significantly fortified its competitive moat. Owning the entire end-to-end process of organ transplants establishes a high barrier to entry for competitors. The company's ability to manage 59% of its transplants internally by Q2 2024 underscores the success and importance of this logistics network -- driving a service revenue growth rate exceeding 300% for four consecutive quarters, despite impacting gross margins.

TransMedics continues to expand its operational capabilities through significant investments in building the most extensive transplant logistics network in the United States. As of the end of Q2 2024, the company had increased its fleet to 17 aircraft, up from 15 earlier in the quarter, with plans to reach 20 operational aircraft by year-end.

Product Offerings

• OCS Heart: The OCS Heart system is designed to keep donor hearts at a human-like metabolic state by perfusing them with oxygenated blood and nutrients, making it possible for hearts to remain viable longer outside the body. This system is essential for heart transplant surgeries, allowing for extended travel times and broader donor-recipient matching -- which can be crucial in emergency transplant situations.

• OCS Lung: This system utilizes advanced technology to maintain and assess donor lungs in an optimal condition by mimicking the body's natural breathing process. The OCS Lung is vital for increasing the utilization of donor lungs that might otherwise be considered unsuitable -- thus expanding the donor pool and improving patient outcomes in lung transplants.

• OCS Liver: The OCS Liver system maintains donor livers in a functioning state, replicating natural blood flow and critical physiological processes. This capability is crucial for liver transplants as it enhances the viability and function of the liver -- reduces the risk of post-transplant complications, and increases the overall success rates of liver transplant procedures.

• TransMedics Data Solutions: To complement its hardware offerings, TransMedics provides a comprehensive data management system that tracks and analyzes the condition of organs throughout the transportation process. This system ensures that all parameters are maintained within optimal ranges and provides transplant teams with real-time data to make informed decisions -- enhancing the chances of successful transplants.

Key chart levels to watch 👇

• $138 -- 21-week EMA

• $105 -- Average VWAP from Nov 2023

• $98 -- 50-week SMA

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https://x.com/StockSavvyShay/status/1827714857363443873