Topic: How To Invest

Q: Pat: I have been an Inner Circle member for many years. Thanks for your wise investment advice. Wondering what your thoughts might be on DexCom? Thanks.

Article Excerpt

A: DexCom, $77.38 symbol DXCM on Nasdaq (Shares outstanding: 84.8 million; Market cap: $6.8 billion; www.dexcom.com), develops, makes and sells continuous glucose monitoring (CGM) systems for people with diabetes. These are small wearable devices that track a person’s glucose throughout the day and night, notifying them of highs and lows so they can take action. The company’s Seven and Seven Plus CGM systems have FDA approval and are used for outpatient monitoring. DexCom also has a collaborative agreement with Edwards Lifesciences to develop a CGM product for use in hospitals. The company currently makes its devices at DexCom headquarters in San Diego, California. In the three months ended December 31, 2016, revenue rose 30.9%, to $171.2 million from $130.8 million a year earlier. The company lost $7.4 million, or $0.09 a share, compared to a profit of $1.5 million, or $0.02. The sales jump was not enough to offset much higher spending on research and development, product launches, and increased staff. The total…