3 Healthcare Companies Worth a Look

On this week's episode of Industry Focus: Wildcard, host Jason Moser and Motley Fool contributor Brian Feroldi take a closer look at three companies in the healthcare space that possess many of the characteristics of investments with the potential to offer patient investors tenfold returns!

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This video was recorded on March 3, 2021.

Jason Moser: It's Wednesday, March 3rd, I'm your host, Jason Moser. On this week's Wildcard episode, we're swinging for the fences in healthcare, folks. Today we're going to take a closer look at three companies in the healthcare space that possess many of the characteristics of investments that have the potential to offer patient investors up to 10X returns, maybe, potential. Joining me this week, again, as we did about a month ago, I think, Brian, I really am happy to have you back. It's Mr. Brian Feroldi, everybody. Brian, nice to have you back here in the virtual studio.

Brian Feroldi: Jason, awesome to be here. I love that Wildcard Wednesday is returning to its healthcare roots today.

Moser: [laughs] We know listeners love healthcare. I love talking about healthcare. I think healthcare is a fascinating market, particularly as technology is changing so many different industries, healthcare is certainly no exception. I think that today's conversation is going to be a really fun one because everybody loves the dream of finding that next 10-bagger, and it's [laughs] a lot easier said than done. But you got to start somewhere. I mean, 10-baggers require a few things, they require companies with big market opportunities, require investors with a lot of patience. Before we dig into the actual companies, I want to talk a little bit about just these 10-bagger stocks, and what are some of the characteristics that you look for in these potential 10-baggers?

Feroldi: For a stock of 10-bag, it has to go up 10X in value, and its market cap has to go up 10X in value. When I think about what I look for in a company that could potentially do that, the No. 1 thing to me is a relatively small market cap, usually below, say, $5 billion. Although, there's no hard and fast rules. I mean, Microsoft was worth $200 billion and then 10-bagged. There you have to keep the scale of things in mind. But, when you're thinking about opportunities in the market that can go up hugely, starting from a very small market cap is certainly a big help. Then I also look for companies that do something special, they are inventing a new market, they have a new product, or they're rapidly taking market share. It's one of the reasons why I love looking at healthcare, because there's so much innovation in healthcare, and a lot of times companies create new solutions, and they literally have no competition, or their solution is so different that it's not hard to believe that they can capture market share from incumbents for a long time. The final thing is just huge growth potential. They are just early on in the beginning stages of their commercialization phase, and basically, if they can do what they hope to do, it's not hard to believe that their revenue could grow 10X, a 100X, or a 1,000 fold over the next couple of years.

Moser: Now, to your point there, on smaller companies, and they can tend to be a little bit on the riskier side. Maybe it does feel like the healthcare sector has a lot of these types of businesses, probably folks will see a lot of those smaller businesses with low share prices, small market caps. Biotechs really come to mind. I mean, there are a lot of biotech companies that play in the space. It seems like they offer that potential. The lure is there, but you have to be really careful with those too, that requires a certain intimate knowledge of that market, that not everyone really possesses.

Feroldi: I mean, there's lots of biotech companies that will go onto 10-bag, but there are hundreds of clinical stage biotechs on the market, and that is truly like picking a needle out of a haystack, not only do you have to be right with your clinical assessment about the company, you have to be right with the company getting it through the regulatory process, you have to draw all safety hazards, and then there's just the commercialization of the product itself. That doesn't mean that there aren't, their companies in there that will, there certainly are lots of great biotechs to buy. Biotech in general is just in my too hard pile. I've discovered that about myself. The companies that we're going to talk about today are all on more of the diagnostics or the medical device aside. That's an area that I'm much more comfortable with. More importantly, all three of these companies are past the regulatory barriers. They either just recently got FDA approval, or they have had FDA approval for a while, and they're in the commercialization stage. That's my favorite area to invest because the risk is so much lower.

Moser: Yeah, that regulatory risk really does rear its ugly head. I'm like you, I put those biotech companies. I don't know enough about them, and I don't have any inside knowledge as to what goes on in that universe. Fortunately for me, I learned that early on as an investor. It was a lesson from a positive outcome. I'd invested in a small biotech company, it was going through those phases I, II, and III trials pursuing a unique condition, and I just thought, "Well, that's pretty cool, I am going to learn more about this as I go along." I got out while the getting was good, I made some money from the investment. That was all fine and dandy, but I learned very quickly through that process. I was, "Man, this is really hard." What threw me for a loop is when you get that Phase III trial positive report, and then the stock tanks on great news. I was "This doesn't make any sense at all, what's going on?" [laughs] A lot of that stuff added up to just what you said. It's too difficult for me to really fully understand. I typically avoid them, and that's what investing is all about. It is learning about yourself as you go along, and where you feel most comfortable. With that in mind, let's dive into these stocks that we want to talk about today, and stock No. 1, one that I think folks in our Foolish universe are learning more and more about. I've certainly seen a lot of talk about it in some of our services and elsewhere. It's a company called DermTech (DMTK -3.63%). The ticker is D-M-T-K. Tell us a little bit about what DermTech does and why you like it.

Feroldi: I'm hoping this name sounds familiar to your listeners because we talked about an Industry Focus way back in October when the stock was at $12 per share, it's currently at $68. It's had a bit of a run over the last couple of months. The good news there is that the market cap is still relatively small. This is a $1.7 billion company, and I think if this thesis plays out even from today, there is still 10-bag potential. Please don't anchor to that $12 price that you would have gotten that several months ago. But as a reminder, DermTech is focused on non-invasive skin disease diagnosis, and particularly on cancer. Skin cancer is the most common type of cancer and in fact, more people are diagnosed with skin cancer than all other cancers combined. About one in every five people will develop skin cancer at some point in their life before they reach age 70. Now, if any cancer and skin cancer falls into this category, early diagnosis is key. If you can diagnose skin cancer in the very early stages, it's extremely treatable. If you diagnose cancer in the later stages, it's much harder, much harder to treat, and survival rates just plummet. The current way that we diagnose skin cancer is with a lesion. So a dermatologist will go, they'll find some part of your skin they don't like and they literally cut it out with a scalpel and they send it up to a lab for analysis. Unfortunately, that isn't a relatively invasive procedure. It leaves scars on patients and the accuracy rates on diagnostics are just not that high. DermTech's innovation they created a clear band-aid-like patch that you put on top of a troublesome skinny area. That patch collects the RNA and DNA from the site of the lesion and then you take it off and send it off to DermTech's labs for genetic analysis. Not only is their test more accurate, but there's no scar that the patient goes on. It's literally putting a band-aid on, waiting a couple of seconds, and taking the band-aid off. So there's a big win on the diagnostic side as well as a big win on the patient side.

Moser: Yeah, that's interesting. Do you feel like it's part of the calculus here for the patient to more or less say, well, I've got a spot on my arm here that maybe looks a little bit concerning, I may want to have that checked out and then they would be able to use that patch or is this something where you would go visit a doctor and the doctor would say, "Hey, this is something we need to be a little bit aware of, and so we're going to go ahead and take this patch and do the quasi biopsy that it offers?" Or maybe it's both? I guess my question is, is this something that only takes place through visiting the physician, or is there something that patients can do at home?

Feroldi: The answer there is both in the long term. They just started commercializing this product a few months ago. Expect it to do about $2 million in revenue in the fourth quarter. So we're talking very, very early days here, but again, it is generating revenue at least. This company's initial focus is on dermatologists because that's where a lot of the diagnostics do take place. You can see this being very attractive for their practices. A lot of times if a patient is on the fence, do I want to have a scar in me to get something checked or not? I could easily see this device helping doctors, dermatologists talk their patients into checking something because there's no invasive thing, there's no scar or anything like that. So I can also see that being used more often. Now, longer-term, the company does recognize that the vast majority of patients do not visit a dermatologist. They visit primary care. So DermTech longer term does want to go into the PCP market, the Primary Care Market, as well as they're making investments in telehealth. You could imagine you having a telehealth visit with your doctor, and this thing just comes in the mail. I don't know if it's simple enough that you can do it at home on your own or if you have to do it while a doctor is watching you do it over telehealth, but there is massive potential for this company to penetrate in markets that are beyond dermatology.

Moser: Yeah, I like that idea. To that point about telemedicine and primary care. You go through Teladoc Health's recent quarterly results in seeing their enthusiasm for the primary care product that they are building out. It really does feel like this entire way that we're visiting the doctor, this entire way that we perceive having the doctor in our lives is changing for the better. I think it's giving us more options as patients, which is ultimately a good thing. In regard to the actual market that's pursuing, clearly, very early stage companies are not making a whole heck of a lot on the way to revenue here, but it looks like it's a pretty decent market opportunity that they're pursuing here overall at least domestically.

Feroldi: Yeah, they believe that the opportunity for their current approvals in the United States are about a $2.5 billion market. What they've been doing over the last couple of months has been gaining reimbursement access. They do have access to Medicare, which is half of the market. So that was a really key win in 2020. More recently, one of the reasons that stock has been soaring so much is, they've signed on a number of other insurers to start covering this, including Blue Cross Blue Shield plans, [...] plans, etc. So as we see those announcements come out on the access to this grow and grow, it makes sense that investors are getting excited about it. Now, they believe that their opportunity is $2.5 billion just within the U.S., but that is just within their current indications. They believe that this platform can be used in other types of cancers. They have carcinoma and something called CTCL. That is in the proof-of-concept and validation stage and their pipeline. They also have a number of research partnerships with the likes of Johnson & Johnson, AbbVie, AstraZeneca, Biogen, L'Oreal insights to use their technology on other types of skin diseases like psoriasis, and lupus, and atopic dermatitis, etc. So this company is not starved for opportunity right now, but even if they don't get any label expansion claims at all, they believe that the opportunity for their current products are $2.5 billion in the U.S. That's a lot of room for growth between $2.25 million and $2.5 billion per year.

Moser: Yes, absolutely. No question about it. Given everything that we've covered, clearly no investment idea is risk-free. What are one or two of the things that concern you or risks that you feel like investors should be aware of with their own thing?

Feroldi: It's really hard to go from being a research organization into a commercialization organization. Those are two different skill sets and the management team here does have some history behind them, but it's a mistake to just say, "Oh, this company is really great at research, therefore, they're going to be really great at commercialization." Those are just two different things. All three of the companies that we're going to talk about today, to me, the biggest risks with all three of them is, this doesn't work, period. They do not have operating histories behind them that show that their products and services have been adopted by the market. I worked in healthcare for 10 years and I can tell you, things that seem like no brainers on paper, might not necessarily work in the healthcare community for a number of reasons. It can make sense again to go slow with these companies and really judge them by their revenue growth. In a sense say, OK, this sounds awesome. Prove it with some strong revenue growth and then we will believe you.

Moser: Yeah, I think that's a great point there. You have the idea, the product, the concept, it all sounds awesome. How do you gauge success? It really is just as simple as looking at that top line. Let's see that revenue growth because that really tells the tale. Certainly, that seems to be a core metric to stay focused on would be that revenue growth, but absolutely neat business there. Clearly, skin cancer seems to be something that is only becoming more and more prevalent. I think it's something that we're seeing more education, more awareness. There are far more people focused on it. It's a big plant, full of a lot of people, and the sun is shining bright most days. So I think that this is a problem that has a lot of opportunity for them in trying to solve. Okay, let's take a look at stock number two here. I have not heard of this one before, but the notes that you have here are really neat. Outset Medical (OM 3.85%), ticker is OM, tell us a little bit about what you like about Outset Medical.

Feroldi: This is a company we did a deep dive on in September of 2020, just after it came public. Outset Medical is a medical device company that is focused on dialysis. Dialysis is treatment for kidney failure. So your kidney stops functioning for a range of reasons, like, your kidneys can no longer take toxins out of your body and regulate the fluids. That's one of their key functions. If that's the case then you have no choice, you have to go on dialysis to live. Dialysis is the process of filtering your blood and regulating the fluids inside your system. Dialysis is incredibly important to keep people alive, but it's hugely expensive. There's about 800,000 Americans that are on dialysis, and while it's only 1% of the Medicare population that is on dialysis, dialysis accounts for 7% of Medicare spending. So once somebody goes on dialysis, it is hugely expensive to treat them. If you know anything about dialysis, you're probably familiar that most patients go to a dialysis facility and they have to go there several times a week to receive treatment. The reason they have to go to a facility is, there is a huge training and cost burden to getting set up with dialysis. What Outset has done that's really exciting is, they have developed a device that they call Tableau, which is now again FDA approved, it is on the market. This takes essentially seven machines that are used in dialysis treatment and converts them into one. So it is a much smaller version of all these other treatment options that happen at the clinic and you could use by the patient or by the healthcare provider.

They have simplified everything about the dialysis so that there's only two parts to the system. There is the actual console itself, which looks like a [...] that you would have in college. [laughs] It's about that big and it has some wheels on the bottle with a little iPad on top. Then there's a disposable part that goes into it and it has everything in that disposable part that you need to have dialysis done successfully. You basically plug it into the wall, you add some tap water to it, you put in the little cartridge that is replaced and boom, you are up and running with dialysis. This machine is also Wi-Fi connected. So if you're using this in the home, if you're using this in the hospital, all of the information that you are using about your dialysis and treatment is constantly being upload to Outset's medical system and can be shared with your physician so they can monitor what's happening with your dialysis treatment while they are far away. The simple way of saying this is, they have revolutionized the way that dialysis is done and made it simple and easy.

Moser: There are so many things that I like about that, and selfishly [laughs] just from one of the services I run at work here that focuses on 5G and the economy developing around 5G technology. We hear a lot about the Internet of Things, but there is a sub-sector of the Internet of Things called the Internet of Medical Things. This certainly seems like it plays into that, at least a little bit, bringing the hospital to the home, and we're seeing more and more medical device companies really making those investments. One that stands out to me is Masimo. We've talked about Masimo before, about a pulse oximetry company that's working on the same type of stuff. Bringing the service from the hospital to the home to make it easier for the patient and the physician to communicate and keep up with each other, monitor progress, and ensure better outcomes. It really feels like this is honestly growing. I think I might be putting this one on my watch list for the 5G service, now that we're talking about it. But I tell you what really got my attention, when I looked through the business model for this business, very similar to Intuitive Surgical you said, please elaborate.

Feroldi: Yeah. If you're a fan of Intuitive Surgical, and you should be, if you are in the healthcare industry.

Moser: I am. [laughs]

Feroldi: Yes, exactly. It's a very similar business model here. So Outset will sell, they call it the capital sales, which again is the fridge-sized machine that houses all the equipment that you need, as well as the iPad. That is sold to healthcare facilities, and then Outset also receives recurring revenue from two sources. First, every time that a dialysis is done, there is that one piece that is a consumable part so that has to be changed out between every single treatment, that is a recurring revenue source for the company. As well as for each of these systems, they have to be serviced over time, so there's a service contract component to this. Now, Outset has only just recently launched this. This is a relatively new technology. They do have revenue already. Through the 1st nine months of 2020, the company did about $33 million in revenue. The bulk of that was from the capital sales because they're still getting these devices out into the world, but they did have some service revenue and some product revenue that's starting to pick up there. So it's going to be several years before that recurring revenue takes over and becomes the lion share of revenue, just like we saw with Intuitive Surgical in the early days. But I really love that over the long term, if this company is successful, you could easily see that 70%, 80% of its revenue is coming from recurring sources.

Moser: Yeah. That recurring revenue, it's just such a great quality for a great long-term investment. We just look forward to it all the time. It does feel like in oftentimes, the healthcare space has a lot of these types of opportunities, and so it was really nice to see that aspect of this business model. Let's talk a little bit about the financials here, because it's still a fairly young business and not really generating any money, so to speak, but it is growing very quickly.

Feroldi: Yeah, it's reporting triple-digit topline growth. Getting this kind of system off the ground is hugely expensive, that's one of the reasons this company came public. We do have data from Q3 2020, we should get Q4 data within a couple of days here. The revenue is growing extremely quickly, 349% revenue growth of products, 1,200% revenue growth for the services segment. When you add all that together, it's only about $16 million in quarterly revenue. The gross margin here is still negative, so it's costing them more to make this system than it is for them to capture. That is something that will be improved over time with scale. If you're not making money on the system sales, how can your company be any more close to profitability.

Moser: Exactly. [laughs]

Feroldi: Their quarterly net loss is about $28 million. They do have plenty of capital for right now. They had $377 million before coming public, at the IPO, they raised another $200 million. So that gives them call it $550 million, roughly, in capital that they should have had at year-end. That will allow them to commercialize this thing, and get it up off the ground at least for a couple of years. It will be sometime before that gross margin turns positive and they start covering their cost, but no surprise given the stage that they're at.

Moser: The market clearly is enthusiastic about this. Certainly, there's some belief out there right now that what they're doing is working, but it feels like a lot of the same types of risks that we talked about. DermTech probably played for Outset as well, another thing that stood out to me. I'm not sure how familiar you are with Davita. But this company made me think of Davita, which is a company that also works in the same space, dialysis. It's not a sadly larger company, it's a $11 billion market gap versus Outset's $2.2 billion. I guess really the difference there is that Davita is generating around $11 billion in sales and Outset is not quite there yet, of course. What are some of the things to keep an eye on in regard to an investment like this?

Feroldi: Same things for all three here this year. When you read through management's commentary about Tableau, it just seems like a no-brainer. It simplifies the training procedure, it allows people to do these things at home. There's actually a cost saving component, we didn't get into. But the Cleveland Clinic did an analysis using Tableau in their hospitals, and they noted that they saw a 55% cost reduction in using dialysis because of Tableau. A half of those savings were from the supplies, and the other half were from the labor and the training costs. I know one thing about healthcare, if you can lower training costs, boy, do healthcare providers pay attention. Especially for something like this, where there's a huge patient training cost. If you want patients to be doing this in the house, you have to subject them to hours upon hours of training to make sure that they're using it right. If Tableau can simplify that process, it sounds like a no brainer. The question is, is it? Are there some other things that we are overlooking here? That we don't know. But I do like seeing that this company has grown it's revenue so quickly, and if this works, boy, is there a lot of room for this company to grow.

Moser: Yeah. To your point on the training, Brian, you and I did some work together on the augmented reality beyond service era. Just got that I wouldn't be shocked at all, if there were some type of immersive technology or augmented/virtual/extended reality dynamic to some training that they offer very similar to what Intuitive Surgical has done. That's something we see more and more in the healthcare space. So maybe Outset is the company that belongs on the watch list for both the 5G service and the augmented reality service.

Feroldi: Boy, that'd be great. The CEO of Outset is a lady named Leslie Trigg, and I reached out to her to potentially come on Fool, I have to interview her. If we get that, I'll say, "Well, hey, what's the augmented reality angle here?"

Moser: [laughs] Excellent, save that question for sure. Well, let's jump into the 3rd stock here. The final stock for the day, this is TransMedics Group (TMDX -5.84%) and the ticker for this one is TMDX . I do recall you and I had spoken about this one a while back, when I was reading through what the company does, really working to solve an important problem. Tell us a little bit about TransMedics and what they do.

Feroldi: So TransMedics is a $1.1 billion company. It is focused on organ transportation, on specifically keeping organs alive between the donor and the recipient. This is a really sad stat, but only about 20%-30% of donated hearts, lungs, and livers make it successfully into the recipient. That stinks, if you're an organ donor. I hate that knowing that only there's a 20% chance of my organs making it into somebody else to keep them alive. Now, why is that? Why is the failure rate so high? That is because the standard of care way to transporting organs between people is by flushing them with cold pharmaceutical solutions and then putting them on ice. Now, I don't know about that, but I do know that [laughs] organs generally like to be in 98 degree temperatures with warm blood put over them. That is their natural operating environment.

Moser: So I've heard. That's what I've heard.

Feroldi: [laughs] That's exactly what TransMedics Group enables. They have a device that they call the Organ Care System, the OCS, and it does exactly that. You can take a donated heart, liver, or lung, you put it in the OCS, and this will keep it at the right temperature. It will continuously circulate oxygen and nutrient-rich blood over the organ. You can actually monitor the health of the organ in transit. If you go to this company's website, I really warn you from doing so, you will literally see hearts beating outside the body, lungs breathing outside the body, livers producing bile outside of the body. But because of this system, they dramatically improved the survivability rate of these organs between patients and they allow these organs to be outside the body and live for up to 20 hours. Now, that matters hugely because it enables long-distance travel of organs. If there is a donor that becomes available in say, Hawaii and you live in Tennessee, that organ can now get to you in time because it can stay alive for many hours. The big benefit here is it increases the chances of having a successful transplant surgery because the organ is healthier when it's going into you as well as it could dramatically increase the total supply of organs by keeping them healthier.

Moser: Yeah, it really feels that way. It's essentially creating just a nice temporary little body for these organs, which makes a lot of sense. That statistic is just astounding to me. The 20%-30% actually make it. It'd be different if it was 20%-30% fail, but only 20%-30% actually making it. That is a bit depressing because, yeah, I've got that little thing checked on my driver's license. I'm an organ donor and I'd like to think that at some point, maybe I would be able to help someone else out. But man, knowing that the chances are better than not that even if you try, you're going to fail. That's frustrating. That's what really caught my eye about this business in really what they're trying to do. It looks regulatory-wise, they're pretty much clear for take off here, aren't they?

Feroldi: They do have regulatory approval for their lung version of their system, but they are currently pending FDA approval for the heart and the liver versions of the system. I do like that they already have one of these approvals through the FDA. The management on their recent conference call did say that they expect to have the other two in the second half of this year. So it isn't fully a de-risks, but again, they have gotten one device, one system through the FDA, and it is already generating revenue for them. Now, there isn't a lot of revenue to go on here. 2020 was a pretty tough year for a lot of medical companies. There were hospitals that were just shut down. It's really hard to get physician interest in this when everything was focused on, all resources were devoted to COVID. But in the most recent quarter, we saw revenue grow 26% to $7.6 million. This company does have a positive gross margin already of about 63%. It did lose about $6.3 million in revenue and about $29 million for the entire year. But it ended the year with about $126 million in cash, so it can fund itself for a few more years. The exciting thing about TransMedic in the long term is not only what the technology enables, but for investors, this company believes that once it reaches scale, that 90% of its revenue will come from recurring sources.

Moser: Nice.

Feroldi: Every time an organ is transported from one spot to the other, it requires these perfusion sets as well as liquid to keep them alive and healthy. Those are disposed between every single treatment. Just like we saw with Outset Medical, the majority of revenue for TransMedics's case should be recurring in nature in time.

Moser: I love seeing that. In regard to the market opportunity, what do you estimate the market opportunity pursued today? Do you feel like that grows over time or is that something that it's pretty plain to see with what they're doing today?

Feroldi: Management believes that if it can get FDA regulatory approval for lung, heart, and liver and execute as well as the things that it can, it projects that it can get to about $8 billion in revenue over time. Again, for last year, they only did far, far less than that, less than $30 million in total revenue for the year. Lots of room for this company to grow if it could be successful.

Moser: Yeah, sounds like it. Assuming that probably the same types of risks exist here with the other two businesses that we've spoken about today. But does anything stand out in particular, otherwise, in regard to TransMedics? I mean, risk outstanding specific to a company like this.

Feroldi: Again, everything that we've talked about with all three of these companies are all post-FDA approval. They're all three very, very early on in the commercialization stage, and management is telling a really good story for all three of these companies. Now, the risk is they don't execute period [laughs] for whatever reason. For insurance reasons, for their commercialization reason, for manufacturing reasons, that's why they call it risk. These are not foregone conclusions, but all of these companies check enough boxes for me that I think it's worth highlighting them and it could be worth building a basket. I'm talking to Jason Moser here, right? [laughs] This could be an interesting healthcare basket.

Moser: This could be the Wildcard Wednesday basket, man. [laughs] I think we may have just invented a new basket, Brian.

Feroldi: There you go. [laughs]

Moser: Well, you've may have invented a new basket and we can brand it the Wildcard Wednesday basket. Because I was going to ask you, when we look at these three businesses side by side, you've got DermTech at a $1.7 billion market. We got Outset at $2.2 billion, TransMedics at $1.1 billion. All fairly small. Absolutely can see 10-bagger potential there just through the numbers. Can certainly see it with the problems that they're solving and the market opportunities that exist. I was going to ask you to pick one, but it really sounds like you think that just all three make the most sense. To me, that makes sense too.

Feroldi: If you forced me to pick one, I would probably go with DermTech just because I think it sounds the coolest. I think that there is huge potential for that company. I really like the optionality that's embedded in the company's long-term pipeline too. But yeah, I wouldn't go hog wild with any of them. If I was going to play this, I would buy a small basket of these three companies, as well as many of the other high-risk, high-reward companies that we've talked about on Wildcard Wednesday before, and then watch them and add to the ones that are executing.

Moser: I think that's a great point there. Watch them and add to those winners because typically, those winners are winning for a reason. It means they're doing something right, and those are the businesses you want to keep building those positions in. Listen, Brian, this is terrific. All three really fascinating companies. I know our listeners always enjoyed getting fresh ideas, particularly ideas that offer so much potential upside. I think you've really keyed in on three businesses that a lot of folks need to know more about in three businesses. I'm going to enjoy following one in particular with Outset. So I'm going to dig a little bit more into this one for the purpose of those services. I think after we get done taping me, you and I need to set a meeting and talk a little bit more about those one. [laughs]

Feroldi: Let's do it.

Moser: Well, I think that's going to do it for us as this week, Brian. But thank you so much for all the work and for taking the time to jump on the show today.

Feroldi: Anytime, Jason. Happy to be here.

Moser: Remember, folks, you can always reach out to us on Twitter @MFIndustryFocus or you can drop us an email at [email protected]. As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. Thanks as always to Tim Sparks for putting the show together for us. For Brian Feroldi, I'm Jason Moser. Thanks for listening, and we'll see you next week.