Behind The Idea #98: Varian's Moat May Be Worth The Price
We continue our special November series. Mike shares his long thesis for Varian Medical Systems, an industry leader in oncology treatment devices that has a lot of attractive business aspects, though it's valuation is also challenging. Daniel tries to probe the thesis for any gaps, but the moat here seems quite strong. Topics Covered 5:00 minute mark - Introduction to Varian Medical Systems and the business case 12:40 - How much does it matter that there are two revenue lines in the income statement? Oncology vs. Proton and Product vs. Service 19:30 - Any reason to think they are transforming more to a service business? 24:30 - Market and customer relationship strategy... moat around business. 31:00 - Is a throughput based model something to be concerned about? 36:00 - Valuation 53:30 - The under the radar aspect of VAR. Learn more about your ad choices. Visit megaphone.fm/adchoices