Tuesday, November 12, 2013

Seeking Alpha: November Brings A Cold Gust Of Reality To Hologic

Diagnostics and healthcare imaging specialist Hologic (HOLX) has been an odd duck within my coverage list for some time. The company has a pretty mixed record of creating shareholder value, with a pronounced tendency to overpay for M&A deals and then under-develop the technology it acquires. And yet, investors and analysts have generally stuck by the company, likely afraid to turn their backs on the potential of 3D mammography and molecular diagnostics.

With fiscal fourth quarter results in hand and disappointing guidance for fiscal 2014 laid out in black and white, investors sold the shares off sharply on Tuesday. Even with the reset in expectations and valuation I struggle to see a major mispricing in these shares as there seems to be a piece of bad news to offset almost all of the bullish points. I am not really expecting this latest disappointment to puncture the optimism bubble around Hologic, but I can't get all that excited about a company that appears to need a lot of work to get back to fighting (i.e., "growth") trim.

Read more here:
November Brings A Cold Gust Of Reality To Hologic

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