Makes drug alluding stents. Its penetration rate in the US was 75% but has dropped to 65%. Will be launching in Japan in the fall. Have a lot of debt on the balance sheet and are in the process of selling assets.
What hurts them was they levered up for an acquisition using debt at the wrong time and have never been able to get out from under that cloud of debt and he doesn't think they will.
Had 2 approvals, May 27 and June 8. This is on his Watch list but was far more interesting before May 27 so it now holds no interest for him. Might be okay for momentum players.
The stock has been hurt, but it is more of an issue because of stents. Sales projections are falling off. At this stage, you are probably facing tax loss selling for the rest of the month and then get a January bounce if the company has a decent outlook going forward. Competition has increased in this area.
Have had serious problems with their stents. The whole area is having issues. Excellent management. They have big pipeline and the technology is still excellent.
They're very focused on one part of the business, which is stents. There is a lot of competition in this sector. Revenue projections have been dropping.
The worst news is already in the stock. At these levels, it's a Buy. Have product pipeline starting to develop. Looking at drug eluding stents in the Japanese market.
Not time to buy this one yet. They have the stent problem and the adoption problem. Lowering their earnings forecasts. Potential recovery, but wait for the recovery.
Had a long-term problem with stents. Made a series of acquisitions which all look very interesting. Not sure what the effect of this will be. A raving buy at this price, but does not like buying a stock on the way down.
If it breaks $7.35, it is going to go lower. His model price is hugely coming down. In September it was $16 and now it is $10.73, which is a positive differential, but earnings are dropping.
Guidance for this year was quite poor. Their stent business is not going to be as robust. Company needs to diversify their asset base and have been slow to do that.