Investing in Medical Devices, The News Isn't All Bad

The stock market slump for small cap medical device firms has meant problems for public investors. As disappointing sales and earnings have pushed down stock prices, those who bought in at the IPO have nearly all lost money. Not so for private investors, who still see a healthy return from the last round of private financing. Some believe the current slump is only temporary. If it isn't, expect a smaller gap between last private round and IPO valuations.