Is Mediwound Ltd (MDWD) A Good Stock To Buy?

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Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Mediwound Ltd (NASDAQ:MDWD) but similarly valued. These stocks are First Security Group Inc (NASDAQ:FSGI), Numerex Corp. (NASDAQ:NMRX), CARDIOME PHARMA CORP (NASDAQ:CRME), and Hill International Inc (NYSE:HIL). This group of stocks’ market valuations is closest to Mediwound Ltd (NASDAQ:MDWD)’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FSGI 7 59375 0
NMRX 5 8467 -2
CRME 8 38454 0
HIL 10 16308 0

As you can see, these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $31 million. That figure was $8 million in Mediwound Ltd (NASDAQ:MDWD)’s case. Hill International Inc (NYSE:HIL) is the most popular stock in this table. On the other hand, Numerex Corp. (NASDAQ:NMRX) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks, Mediwound Ltd (NASDAQ:MDWD) is even less popular than Numerex Corp. (NASDAQ:NMRX). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case, more research is warranted.

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