Edward Lifesciences Corp (EW)

RADAR: 3 circles,

UNDERSTANDING: Designs and manufactures artificial valves used in the treatment of heart disease.

MOAT: Secret: Owns several patents on the most commonly used heart valves. Brand: most referring
physicians are very familiar with the brand and with CEO’s endless work in the field.

MANAGEMENT: CEO: Michael A. Mussallem has been Chairman and CEO for 17 years. Serves on various
medical boards and committees (AdvaMed, Healthcare Leadership Council, advisory board member for
the Leonard D. Schaeffer Center for Health Policy & Economics at the University of Southern California
and a trustee of the University of California Irvine Foundation. Salary of only $976,731, very reasonable.
Other stock value and options bring his total compensation to $9,734,099.

CFO: Scott B. Ullem has been corporate vice president, chief financial officer since January 2014. Prior to
joining Edwards, he was the chief financial officer of Bemis Company, a global supplier of packaging used
in leading food, consumer and healthcare products. Ullem also had leadership responsibility for one of
Bemis' three business segments and the company's information technology function. Before joining
Bemis, Ullem spent 17 years in global investment banking, serving as managing director at Goldman
Sachs and later for Bank of America. He serves on the board of directors for Berry Global, Inc. and is a
Henry Crown Fellow at the Aspen Institute.

ROE: 21.7

ROIC: 16.6

DEBT: 1.44 years

FGR: 15.20(Analysts) FP/E: 30.40 FCH/Share: 2.65

MEANING: 93 MOAT: 88 MGMT: 95

CURRENT: $118.89 EPS: $0.60 EPS Growth: 15.1% STICKER: $93.11 MOS: $46.55 PBT 8: $42.21

LOVE – I used to be a fat guy and have an interest in heart health and science.

GURUS – Jim Simmons(Rennaissance Technologies) increased his holdings by 7% to 926,300 up from

865,200.

Paul Tudor Jones(Tudor Investment Coro Et Al) bought in for 208,491 shares in April, 2017.

EVENT – “This maker of heart valves stumbled with lower-than-expected international sales in its most
recent earnings announcement, but Mussallem—the only CEO the Baxter spinoff has had in its 16 years
of existence—has an impressive record, with 11 straight years of increases in operating earnings.” Is this
an event? Stock seems to be steadily climbing.

STORY INVERSION – There may be competitors developing similar heart valves and other competing
technologies. I believe that this won’t affect EW though as they have a secret moat and a brand moat
amongst referring physicians

11 analysts recommend a strong buy and only 3 recommend a hold

Summary, stock on watch, buy at $47.