IRTC · investment memo
BUILT from own measured operating leverage at a decaying rate, IRTC_Valuation.md s2: gross 74.5 - R&D 8.5 - SG&A 47.0 = 19.0. Constraint 19.0 <= 74.5 satisfied, 55.5pp headroom. Above the trailing -5.2%, justified by +12.4pp of margin expansion delivered in twelve months and a positive operating quarter already achieved (Q4-2025, +1.1%). Stored in IRTC_analysis.json as the FRACTION 0.19.
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 $105.89 triggers a mandatory re-underwrite and freezes further purchases. It is not an automatic sell unless a separate fundamental invalidation condition has been breached.
Not stated. This name has no falsifiable invalidation conditions on file, so it cannot be risk-monitored. That is a gap in the research, not a clean bill of health — recorded rather than hidden.
Named cause: an adverse resolution of the 2025-12-12 DOJ False Claims Act civil investigative demand concerning Zio AT reimbursement claims, and/or a CMS practice-expense revaluation of CPT 93247. These are the two named, dated mechanisms, and they are not independent — an FCA finding about how Zio AT reports were prepared and billed would strengthen the case for repricing the code, and the July-2024 483 observation about *"the involvement of the technicians to prepare the Zio ECG reports"* sits at the intersection. Quantified: 93247 is a practice-expense-driven code (7.57 of 7.58 RVUs are PE)