GMED · investment memo
max(own demonstrated, sector peer median): Q1 2026 GAAP operating margin 19.8% ($150.4m / $759.9m) - already printed for a quarter - against a medtech comparator median of 18.6%. TTM 17.2%, FY2025 16.3%. Base-business Adjusted EBITDA margin 33.4%, up 4.2pp in FY2025, is the D&A-inclusive corroboration.
Four distinct questions, one field each. A price is not a thesis: the trigger below forces a re-underwrite and freezes further purchases — it is never an automatic sell.
A daily close below $70.96 triggers a mandatory re-underwrite and freezes further purchases. It is not an automatic sell unless a separate fundamental invalidation condition has been breached.
Fundamental and falsifiable, never price-based. If one is satisfied the thesis is marked dead and the position is retained only by explicit decision.
MEASURED. Does not block. Logged to the ledger. Named cause: the organic acceleration is a NuVasive-disruption rebound, not a durable share gain, and it reverts to the ~5% base-business rate of FY2025 while Nevro continues to shrink. The mechanism, specifically: GMED's 2024 organic decline was self-inflicted (integration disruption). Recovering lost territory produces a 12–18-month growth bulge that ends when the territory is recovered. Q1'26's +13.2% sits on a −1.4% comp; the two-year stack is +5.6% annualised. The company's own FY2026 guidance implies ~+8.5% organic, decelerating from Q1's 1