NASDAQ.com shows that several of the 7 analysts have markedly reduced their estimates for the next several quarters. Reduced estimates are never good for a stock's price. One can only wonder what the analysts used to make these estimates with no guidance provided my management. Apparently they weren't overly impressed with the "positive" spin from the cc.
I think the analyst think they are going to lose their lawsuit against CLZR and now that a third of profits come from royalties and settlement, this will be a major setback since they look to be losing market share.
I wonder what the time lag was on those lowered estimates before they were known to all (by way of Nasdaq.com, Yahoo, and other data sources)? That might explain the continued hammering of PMTI and reinforce "selling on technicals" before the "fundamental" bad news hits the street and the portfolios of retail investors!
Talk about reduced estimates! FY07 EPS consensus estimates went from $1.74 to $1.47. That takes the PE back up to 30 with the share price at $44. If PMTI undercuts the low of its last base ($32.67), which is a very good possibility considering the run up and number of bases it's had since the current bull run started, its PE will be 22...for a negative 25% growth in FY07. IMO, I think PMTI is on its way to take out that low.
Newest analyst's (WR Hambrecht + Co.) EPS estimate has taken the consensus FY07 EPS estimate down another .04 to $1.43.
NOTE: Looking out, the FY07/Q2 report should be interesting when considering the comparison Q will include Cutera's ONE-TIME back-owed royalties.
well, analysts are sometimes right and sometimes not.....
PMTI launched new very high margin lasers (fractional) some weeks ago and these could propell the turnover and of cource the profits dramatically up. The first influence we should see already for this 1st quarter. And: the more Star Lux machines are sold the more the need for the high-margin hand-pieces as "razor-blade income" is increasing. So PMTI has a very nice growth ahead. It�s silly in my mind to discuss from one quarter to the other if they earn 1 or 2 cents more or less. Their numbers are very very good.
- they have the right product family at the right time
- they are close to the huge Gillette-deal (turnover in 2008) but they receive now over time the first US $ 10 mio
- there is a good chance to win against Candela and others
witch could result in new licence deals and another 10, 20 or even more mio more money in the bank......
and and and.....(JnJ-deal as the mega Windfall !)
perhaps a split also
Investors only have to have T-I-M-E !
and should see these low valuations as of today (short-seller driven) as a new buying opportunity !
pmti has broken technical support and needs to find a bottom. This is danger of owning heavily shorted stocks, sooner or later they get slaughtered. hopefully the short position has been reduced significantly over the past few days. If you look at a chart of pmti since fda approval the stock has had way more down days than up and has had a buyer strike. most institutions buy and sell on technicals and right now we have no bottom. we need volume to dry up and stock to find a new base. this stock has not even had a bounce fro being oversold. All news is bad news whether good or bad. my guess is alot of institutional selling and hopefully shorts getting out because they have done very well.