SYK · investment memo
HEADLINE FIGURE, AND THE MEMO DISCLOSES IT AS DEFECTIVE - the same defect as ISRG. The scan's published required_cagr_pct inverts exactly to a FLAT 20.0% terminal EBIT margin applied to EVERY name in the scan universe, the hardcoded constant coverage_scan.py's own comments record as a defect fixed after these scan files were written. SYK's OWN operating margin is 19.5%, so unlike ISRG the constant is slightly ABOVE trailing here; substituting 19.5% gives required CAGR 15.7% and margin -4.9pp - slightly WORSE, not better. Stated rather than silently applied, and the direction is why it does not change the verdict.
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 $304.98 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.
- FY2026 organic guidance cut below 8.0% at any print → Quality Criteria mechanism materially impaired. - Two consecutive quarters of organic growth below 8.0% ex-cyber → the 16-quarter streak is over; the entire Quality Criteria mechanism weakens. - A second material cybersecurity incident, or any auditor commentary on internal controls arising from the first → Quality Criteria mechanism materially impaired. The Q1-2026 10-Q already warns that manual workarounds "may increase the risk of errors, delays or data integrity issues (including with respect to… processes supporting financial and ope