Does Lombard Medical Inc (EVAR) Represent A Good Investment?

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 also examine hedge fund activity in other stocks similar to Lombard Medical Inc (NASDAQ:EVAR). These stocks are Xplore Technologies Corp. (NASDAQ:XPLR), Aldeyra Therapeutics Inc (NASDAQ:ALDX), Amtech Systems, Inc. (NASDAQ:ASYS), and Comstock Mining, Inc. (NYSEAMEX:LODE). All of these stocks’ market caps resemble EVAR’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
XPLR 4 2768 0
ALDX 7 13025 0
ASYS 4 9742 0
LODE 4 3173 -1

As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $7 million. That figure was $5 million in EVAR’s case. Aldeyra Therapeutics Inc (NASDAQ:ALDX) is the most popular stock in this table. On the other hand, Xplore Technologies Corp. (NASDAQ:XPLR) and Amtech Systems, Inc. (NASDAQ:ASYS) are the least popular stocks in this table. With only 4 bullish hedge fund positions, Lombard Medical Inc (NASDAQ:EVAR) has the same popularity as the least popular stocks in this group. Considering that hedge funds aren’t fond of this stock 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.