just because a highmark decrease wasn't included in the company's official guidance doesn't mean the market wasn't already pricing in a reimbursement cut. for example, bank of america's estimates already had a 20% decline for their medicare projections.
cardionet stock is down 70% since april. in my opinion, a ton of bad news was already expected.
"CardioNet Slides On Warning Due To Reimbursements, Volume Wednesday 07/01/2009 7:54 AM ET - Dow Jones News
DOW JONES NEWSWIRES
Shares of CardioNet Inc. (BEAT) slid a day after the maker of outpatient monitoring devices slashed its 2009 earnings forecasts because of lower-than-expected reimbursement rates and slower-than-expected volume growth. The company now expects earnings of 30 cents to 35 cents and revenue of $156 million to $160 million, compared with its April forecast for 69 cents to 73 cents and $170 million to $175 million, respectively. Shares recently were down 20% at $13.13 in light premarket trading. The stock through Tuesday was down 41% the past three months. Analysts said last week that investors have moved to the sidelines amid uncertainty over the rate that Medicare will reimburse for the company's lead product, a mobile cardiovascular telemetry system."