BSX gets great news with the approval of the distribution of the Cartoid stent, and guess what, the price is down $0.05, when it should be up dollars... Oh well, MACD looks good, Bollingers are narrowing, and the next earnings call is in 5 days... Shareholders will just have to stick it out.
Gotta agree that BSX is getting hosed. It could be a break out kind of day with the slew of great news lately. Instead, the price is struggling to stay afloat. I have resigned to the fact that this is a dead horse until the litigation threats are fully resolved. If even good to great news, second generation products, and retention of DES market share cannot shake it free, then forget it. Even in a down market, the past two day's performance just shows that this stock is carrying a sack of bricks.
When BSX came out with their DES, it was easily the "sexiest" new medical device in the news (JNJ had one but most anticipated they would screw up when competition came along, and they were correct). Today, the market rewards those with "sexy" products coming down the pipeline.
MDT stock price has lagged over that last few years much because they did not have a good entry in the DES "sexy" market, IMO. Yet growth numbers were still decent.
I believe that there is an element of the investment community that rewards "sexy" products proactively, and "non-sexy" products retroactively. With new competitors positioning themselves to start chipping away at DES market share, these investors have moved out of BSX because they don't see a new "sexy" product coming out. There are many profitable products in the pipeline, but they don't have the "sexy" factor getting these investors excited.
So if this theory has any basis in reality, one could predict that unless BSX comes out with a new significantly "sexy" product, the stock price will not rise until after solid earnings are reported. Up to last summer, the market was so excited about DES that they were proactively rewarding BSX stock. Today, they are less likely to reward until actual earnings success is demonstrated.
This addresses some who have questioned why BSX has lagged in spite of the bright earnings future with DES.