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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