Investors had already braced themselves for a bad quarter and a
near-total reset of expectations at small med-tech company Accuray (ARAY),
and the company actually came through with a slightly better quarter.
Even so, investors apparently didn't like the fact that management
didn't improve its order or revenue guidance, and/or the announcement of
a $100 million convertible debt offering.
I've spoken at some
length regarding my frustrations with Accuray, and my continued interest
(and ownership) in the stock comes down to this - Accuray has developed
some radiation therapy systems that offer solid advantages over the
systems sold by Varian (VAR) and Elekta (EKTAY.PK).
If the company can effectively manufacture, market, and support these
systems, the shares are undervalued today. There's still a real window
of opportunity for this company to become a player in the radiation
therapy space, but the window is closing and the company needs to
deliver over the 12-18 months, or there may be little left.
Please continue here:
Accuray Buys Some Breathing Room, But Orders Need To Materialize
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