Tuesday, November 5, 2013

Seeking Alpha: Can A More Realistic Volcano Perform Better?

Following Volcano (VOLC) has been a frustrating exercise for many years. Despite strong clinical data supporting the company's core IVUS and FFR platforms, the company has struggled to live up to its own growth expectations and management has stubbornly thrown good money after bad with M&A and R&D spending on projects with unclear (at best) paths to management's growth expectations.

Maybe this is the turn. Missing top-line expectations for the sixth time in seven quarters isn't exactly good news, and neither is the present state of stent procedure volume. On the other hand, abandoning the OCT, FL-ICE, FL-IVUS boosts the probability that management is now looking at its real business prospects in a more rational way and may become more disciplined with its spending priorities. Unfortunately, while I do not ignore the possibility that Volcano could still attract a bid, I don't see a lot of internal value in these shares.

Follow this link to continue:
Can A More Realistic Volcano Perform Better?

No comments: