Almost all of my charts look the same, time to take cover and hunker down. This is why it is not wise to be a long term investor using margin, you can't withstand the always coming storms, this will pass soon, I still see 10 on the horizon , months away in my opinion.
7x sales is certainly expensive unless earnings picks up considerably. I believe I remember Petit mentioning that earnings would start to show improvement in 2014? Is it unreasonable to expect $25m in earnings on $125m in sales (both annualized at the end of 2014)? If so, the PE multiple could be around 30x - 40x which may be cheap given the international growth potential, epifix potential in the united states and amniofix potential. Nothing is ever a given in this world but it certainly seems as if the company just needs to grow into its stock price a little. My guess is the stock price will rally when the company gives investors a better understanding of what that growth picture looks like and some uncertainty disappears as noted above and in the other posts. All in time
Storm not over yet, I will not be surprised to see spx hit 1700, about 5 percent lower. Everything getting marked down across the board. It is rough waters that reminds us not to use margin. In all of my years of trading, I can assure many of you investing in healthcare related stocks during rough periods can be prudent. People still will get sick, need products and mdxg will be fine. With zero debt and exploding sales we are in a great position, that doesn't mean that it won't get more painful, it does mean when the storm clears and the sun shines mdxg will rise fast once again, fasten seat belts as there is turbulence in the air.
It is days like these which make it easy to understand why this stock is not marginable at Charles Schwab.
Schwab will tell you that they are just trying to protect your money, and that is partially true. It is their money which is their bigger concern though.
I can understand the slaughter in the small cap biotech space. Many of those companies have no revenues, and some probably never will. MiMedx on the other hand has revenues that are growing quickly. There is cash on the balance sheet, and a revenue stream increasing rapidly.
In my 30 years of trading I would not use the word hysteria, the market was up 30 percent last year, mdxg is up 8 fold in 5 years, that is not normal, there must be pain in the markets to wipe out the idiots and stupid money, this is capitalism and the forest fire analogy, invest in great companies like mdxg, put your seat belt on and never use margin,, Investing isn't easy, which is what makes it so great, look what happened to mdxg in September, panicking would have cost a long term investor greatly. This too shall pass. And I believe very soon as Janet Yellon the new fed chair will want to make a positive beginning to her term.