Jesup and Lamont initiate with a buy and a $15 target. They believe that Intravascular Ultrasound represents an extremely attractive market opportunity and they perceive Volcano as a dominant player. Of course the stock does nothing. Who is Jesup and Lamont? They are a full service Brokerage and Investment Banking firm that has been in business for more than 25 years.
You could have said the same thing at any time for the last few years -- IV ultrasound is an attractive market blah blah etc etc. Problem is, VOLC has not shown it can operate profitably, and what else matters? Instead of concentrating on generating positive earnings in its core business, they made an acquisition. Hard to understand.
They have to start generating better revenue growth with positive earnings (it would be nice to see that grow too) within the next two quarters or the board has to act. They cannot keep burning cash and/or diluting. The IPO honeymoon is over.
If that does not happen, this stock will trade south of $5, especially if the economy really slows.
Yeh it sounding more and more risky...I am out taking a loss for the 2nd time on this dog ...can't sit here and hold it for the earnings report the way the market has been acting if you miss. Sidelines for now.