Thursday, January 29, 2015

Seeking Alpha: Progress From Accuray, But Still No Big Turn

It's not hard to understand why investors could be bearish (or at least ambivalent) about Accuray (NASDAQ:ARAY). This company is well behind Varian (NYSE:VAR) in terms of market share and Varian has the financial wherewithal to spend on R&D in one quarter what Accuray spends in a year. What's more, there are still questions about whether Accuray can/will get an important product enhancement to market on time and just how much benefit the company can expect to see in terms of orders, revenues, and profits.

Although I believe I understand the bear arguments, I'm not bearish on these shares and I still see reason to own them. Yes, Accuray has a steep hill to climb to get radiation oncologists to view it, and its systems, as a true peer to Varian and Elekta (OTCPK:EKTAY). But, I believe there are advantages to Accuray's technology and products and I believe that management has made meaningful strides in improving its product quality and its marketing approach. All of that being said, orders have to materialize for Accuray's potential to be anything more than just words and figures on paper.

Read the full article here:
Progress From Accuray, But Still No Big Turn

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