The problem with small-cap radiation oncology company Accuray (ARAY)
is not that it never has good quarters. The problem is that the company
has never been able to put together a good run. With two pretty good
quarters in the hopper, though, maybe the actions that management has
taken over the past couple of years are starting to make a real
difference in order flow and revenue conversion.
I'm
still skeptical (and still a shareholder), but if management is playing
it safe with guidance, there might be some actual momentum in the
business now. I will explain my thinking later in this piece, but I'm
now more comfortable with a valuation approach that suggests a fair
value in the mid-$7s, making Accuray worth a look if you can take on the
risk that this is yet another head fake in what has been a frustrating
pattern of "two steps forward, 1.9 steps backward" for many years.
Click here for more:
A Spark At Accuray - Will It Catch Fire This Time?
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