JPM don't throw $75 million at no-hope companies!
Their DD will have included an assessment of when re-filings are likely to be achieved and of course, whether or not they are full of bad news (which they clearly aren't!).
Wish I'd bought more on Friday!
This could be good for quite a nice little lift this week.
No such luck.......
I'm basing that on projections running forward from their last stated ENT and sports medicine sales (allowing zero for spinal!). My assumption is that the non-spinal business numbers were clean and genuine.
It all depends on how the economy moves forward and how the healthcare environment develops.
Back in '06 someone might have bought the ENT/Sports business for $75 pps just for org synergy.
Those days are gone though.
You are right. Arthrocare is a really nice company with well respected products.
Unfortunately they got greedy and became the worst kind of ambulance chasers with the spinal wand.
I'f instead they'd knuckled down and done some nice clinical validation of the wand IN THE RIGHT PATIENTS, they might have a billion dolar technology right now.
Instead, suckering a few insurance companies and booking questionable shares has set them back 5 years.
The core of the company is really good though and once litigation threats have cleared, it could still be worth $40 to an acquirer.
Fair enough. I just see it as the glass half full.
I've been in medical sales for 10+ years, interviewed with ARTC twice now- that probably looks lame for me to mention it. It's funny- my last interview was last July and the hiring manager kind of squirmed when I brought up the investigation against them, etc.. I think i freaked him out. He didn't call me for a 2nd interview. (Now I'm making a ton of money off them, I'm just not "working" for them)
But the fact is, they have a great product, it's a great company, surgeons love their ablation product, and the fact thay got caught up in working the system doesn't take away from their core product. Once the new #s come out, everyone will see what I'm talkin about! (I really hope so anyways)