Small-cap radiation oncology equipment company Accuray (NASDAQ:ARAY)
continues to give investors more than enough reasons to strike it from
their lists and move on. I believe that the clinical evidence continues
to support stereotactic body radiation as a very effective method of
treating certain difficult cancers and that Accuray's CyberKnife is a
very good SBRT system. I also believe that Accuray need only establish a
mid-teens market share in the radiation oncology market with its
specialized Tomo and CyberKnife systems for the stock to do well.
The
problem is that Accuray just isn't on a clear path to growth at this
point. While the financial results in the third quarter weren't awful,
another sizable miss with orders puts near-term revenue growth at risk
and reignites concerns as to whether Accuray really can keep its foot in
the door with radiation oncologists. These shares are still priced to
potentially produce above-average returns, but the inability to
establish a firm, sustained trajectory of orders is a major worry and
sufficient cause, at least in my mind, to consider moving on to other
ideas.
Read the full article here:
Accuray On Its Way To Being A "Why Bother?" Stock
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