Seeking Alpha: Steady, Albeit Not Spectacular, Progress At Accuray

Patience may be a moral virtue, but it's not a particularly compelling investment thesis. To that end, Accuray (NASDAQ:ARAY) is most definitely making progress from an operational standpoint, and is operationally outperforming its much larger rivals Varian (NYSE:VAR) and Elekta (OTCPK:EKTAY), but the pace of the progress is likely stifling the enthusiasm of would-be new investors.

I continue to hold Accuray as a small position in my portfolio because I think the company has turned the corner and remains meaningfully undervalued. Not only has the company improved its Tomo platform to a point where it is a legitimate standalone option, but the company's CyberKnife system is well positioned to take advantage of growing adoption of stereotactic radiosurgery and stereotactic body radiation therapy. With a fair value range of $9 to $12, there is still meaningful upside if, or when, investors become more comfortable that the company is establishing a more consistent pace of order and revenue growth and a credible road to profits and free cash flow.

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Steady, Albeit Not Spectacular, Progress At Accuray