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Volcano Corporation Message Board

  • z_for_three z_for_three Nov 3, 2009 11:38 AM Flag

    Do Weak Technicals Signal Weak Earnings/Guidance?

    Unfortunately, I am long and getting my ass kicked by this stock. The technicals are very weak and usually the market is right...although not always. I pray its the latter but fear the former is true. It's just very disappointing. Anyone know the current short interest? The weakness has come on relatively low weekly volume, so maybe this is just a sign of weak hands leaving. There's the healthcare bill uncertainty as well as the opportunity cost of capital (why hold or buy VOLC if I can buy stocks that move?). So, VOLC clearly needs to beat and guide higher this week in its earnings. IF it does, we could see a $3-5 point move higher, particularly if management indicates that its customers are buying systems in light of the uncertain future in the market. That is the key.

    BTW, healthcare has SIGNIFICANTLY underperformed this year. Will it catch up in November and December? It's a super cheap sector.

    Also, M&A activity has picked up. Is VOLC a target for Boston Sci (for IVUS), St. Jude (for FFR) or for Abbott (help support stent busienss)? Seems like a lot of synergies for all three firms. Leverage each buyer's salesforce and remove that HUGE SG&A at VOLC...and voila....a highly accretive purchase.

17.980.00(0.00%)Feb 13 3:59 PMEST