It's bad enough that this is a risk-averse market that
is quick to punt on any small-cap company that doesn't post near-perfect
results, but Accuray's (NASDAQ:ARAY) own slow pace of progress makes it harder to aggressively defend the company and argue that investors need to reconsider these shares.
I continue to believe that Accuray is undervalued on the
basis of its long-term potential, but I don't think there has been
enough progress in the company's sales/marketing efforts or order growth
to argue that a long-term revenue growth rate roughly double the linac
market growth rate is "conservative." What's more, future performance is
hardly guaranteed when you consider that the company's two chief rivals
outspend the company on R&D by roughly 4x and 2x.
Despite that bleak summary, I'm hanging on. I believe Accuray is making progress and I think the company has more of a future in radiotherapy than today's price reflects.
Read the full article here:
Slow Progress Not Enough To Convince Accuray Skeptics
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