The reason BSX is not at $40s is their stent. People hopes BSX will take 1/3 of the market shares so that BSX's revenue can grow. If not, BSX will drop for sure. Now that BSX has trouble with their stent, maybe just maybe, they cannot grab that 1/3 needed market shares.
Other negatives about BSX: (1). core bussiness falls (look at their previous quarter report), (2). Schneider purchase is EXTREMELY expensive (somesaid AVEI wanted to destroy BSX by betting up high on Schneider), (3). S&P downgraded BSX's rating (results: BSX will pay higher interests rates for their $2billion debts because of Schneider deal).
Overall, BSX is really risky. Don't touch it above $60.
Just a small rummor of a recall on the NIR delivery system will drop the stock price back to 40 where it belongs. Then I will gladly buy it. Boston Scientific is a great Co. with an excelent management. The sale force is astounding.
I've used the Nir and the Nir on Sox in difficult situations without any problems, although I've never attempted deployment without predilatation. I routinely use a 6 Fr system unless I plan to rotablate. Unfortunately some operators lack judgment; recall the "problems" reported with the rotablator early on, before the Boston Scientific acquisition. This concerned the analysts and the stock dropped. Improvements in technology have allowed us to approach more complex anatomy, but operator judgment and experience remain critical for procedural success. The Nir and the gfx have in my mind set the new standard for stent technology.
Word on the street is that BSX already is tracking at more than 33% Stent market share. Even with all the rumors and troubles that have been circulating. Sit back and wait for the good word from the TCT. That will be the official launch of the NIR stent to the UNITED STATES. If the SCIPPS course in San Diego was any indication it is going to be a huge bang. Afterall Richard Schatz, who is in the Cordis camp, said that the NIR was the best stent on the market. Plus the Schnieder purchase was mostly done in cash. And the early estimates on third quarter earnings are that they will come in around .51 cents a share.
If that is true I think you are going to have to re-think your negative attitude towards BSX
If you believe that the NIR is tracking at 33% marketshare, I want to be your stockbroker! They have stopped shipping the NIR with SOX to any new customers as of last week, and they are not even close to opening even half of the hospitals in this country as of today. Any company can make the numbers look favorable by opening large accounts and requiring them to buy several months worth of inventory, then reporting to analysts that they have unbelievably "captured" nearly a third of this market. Cooking the books is a tried and true trick, and nothing more.
Stock down over 5 today, still believe the problem is overblown?