Jan 13 (earning pre-announcement day), ZLTQ went up to 24.3 then gradually went down to register a loss.
The next day went down more and developed a reversal Doji.
Jan 15, CEO deliver at the JPMorgan Health Conference after market close.
Jan 16. big up day, because the reality started to sink in. (YOY 64% for Q3 and 91% for Q4, accelerated rate of growth)
Jan 17. digestion period, settling down a little.
Bottom line: I expect it will form a bullish triangle, then it will shoot up again at earning time with an adjusted bullish 2014 guidance.
does guidance take into consideration Valeant's entry into the space? How about 10Q's that shows Solta's Lipo extended sales in 2012 but not in 2013? could it be that Solta was in bad shape as a company? Is Valeant in bad shape. How do you justify a 800M cap with a no diversified company which is likely to see extended sales again because of Valeant? How about BTL ind's Vanquish? U do understand Zeltiq has increased sales because of next to no competition domestically right? Can you offer thesis to justify the 800M cap?
Look, mr. market is looking to future earnings, in the next 2 or 3 years ZLTQ can earn 2 to 3 dollars per share, assuming current growth levels, so the market cap can go even to 2 billion.
as long they raise and beat and deliver strong numbers, market cap is a none issue, b-c strong earnings will kick in faster then the current estimates.