QuidelOrtho Corporation

Data

Bull case:

• Forward P/E 6,
• operating margin 56%,
• low gearing,
• return on equity > 50%,
• trading below 200 DMA (and roughly at 50 DMA),
• price/sales ~1.9.
• Price has crashed a lot.

Bear case:

• the company offers PCR and other diagnostic testing, the demand for which is likely to shrink in the coming years,
• recent merger of Quidel Corporation and Ortho Clinical Diagnostics to form QuidelOrtho might create cultural clashes and management departures,
• Amazon gets into medical testing,
• the US govt. starts to use its monopony power to get a better deal for Medicare and Medicade,
• anti-trust legislators come after the company (I don't know how big it is, but it seems to be the biggest in its segment).

The company operates in the medical field which, to me, is fairly opaque.

Ortho Clinical Diagnostics Faces Uncertain Merger And Inflation Environment (Seekingalpha, March 2022).