Imho, the 40% drop we experienced in the April/May timeframe had very little to do with the fundamentals of the company, other then the changing circumstances surrounding Intuitive Surgery.
At the end of December Institutional ownership had increased to slightly more then 70% due primarily to the $106 million equity placement in October, 2013. One would have thought that Institutional Ownership would have moderated in growth after that placement. Instead, it continued to rapidly increase in the 1st quarter this year.
By March 31st, there were 19 new institutions investing $8.5 million with only $500 thousand of sold out positions. Existing institutions increased their positions by $11.5 million, with existing institutions decreasing by only $7 millions. By the end of the quarter Institutional ownership accounted for 44 million or 80% of the 55 million shares outstanding. In my mind, this was a clear case of piling on and it drove the stock up past $24 per share. We had become a momentum play.
We all saw what happened to the momentum stocks in April. There were a great many Institutions who had a substantial investment in Novadaq and a very substantial profit. A large number either exited or reduced their positions.
I, for one, am very glad to see daily volume on Novadaq down substantially from the April/May period. The market for our stock has calmed down in either direction. Maybe now, these folks will again begin to focus on the fundamental progress we are making across the board. And this progress is accelerating. It was great news for us when the company reported that in the 1st quarter 17 medical articles were published related to our products as compared to 15 for ALL of 2013.
Market goes down 100+ points, this thing does down $.55 points. Market goes UP 100+ points, this thing goes Down $.45+ points. I guess because it went down less on an up day, that could be considered a positive. BULL. Doubt this has anything to do with Intuitive.