Some of my best stocks of the past have had good run ups as public stocks, been taken private by savvy business people and gone crazy from there. There are many benefits to a company being private.
This will be my last post on this thread as don't want to bore everybody, but will answer your question. Lots of money is made on private stocks and there are many benefits to being a private company that fit the ARAY current situation.
Thanks. You sound like you might be somebody at the company, and current action in the stock price is proving me wrong, both of which I hoped for.
Thanks for the education. I have no idea how to short a stock and have had good market success since buying my first shares in 1960. This stock has been from 11 to 3 and 9 to three again since my treatment, but you are to be congratulated on your success with it. I really don't care about the stock price, but would like more patients to have the opportunity for cyberknife treatment which I have stated many times would be most likely to happen if they were a private company.
My experience with medical stocks which might be of interest. Companies that have a disruptive technology often have a big run up in stock price shortly after IPO because this seems to be an area where savvy stock market investors make money-consider ARAY, HNSN, ISRG. Then the stock drops off radically in price while they are not making money-consider the same. If they continue not making money, the stock price stays low (ARAY, HNSN ), but if they make big money the stock takes off (ISRG). Then there are those like MAKO which go up and down and don't make much money, but are acquired by Stryker for over $1b. Go figure?
Glad to be wrong if this keeps going. ViewRay, which is doing IPO this week, has Chris Raanes and other former ARAY people involved and an MRI vision treatment system. Some will recall ARAY jumped to over $30 a share shortly after IPO. Stay tuned.
created this post as much for those at the company, who do monitor some comments here, as for the intelligent posters and folowers
I have been a booster of ARAY since my Cyberknife procedure in 08 which was convenient, painless, no side effects, cancer gone. The company has great technology and the 600+ installations around he world and the people who operate them are amazingly successful in treating this terrible disease. Therefore it pains me to say it is dead money in ARAY stock because the company can't generate earnings as currently structured and as such does not make a good investment opportunity or acquisition candidate either. Just MHO. Would be interesting if somebody at the company would comment on this and that action in the stock price would prove me wrong.
Another important lesson from ISRG-keep the number of shares outstanding low as the company evolves. They have only 36.6m shares out and market cap of 18.6b.
RMTI investor since 2002. Many on this board are expecting short time results that cannot be predicted and are greatly influenced by the high short position which will not go away soon. I keep referring to ISRG but it is the example of what can happen in the long run if things are done right. FDA approval for ISRG main offerings came in 2000 and 2001. Their stock was $7.34 in Feb 2003 and now over $500. That is because they had a disruptive technology, good initial financing, an amazing marketing plan that took sometime to get going, and a brilliant businessman Lonnie Smith as CEO. The numbers they put up are amazing and of course that is why the stock price is high. Whether RMTI can do this will not be known for many years. In the meantime, all speculation on what will happen to the stock price in he short run is pure gambling .which some people enjoy.
RMTI investor since 2002. While there are differences between drugs and medical devices, the ISRG stock experience (as low as 7 to over 500) and how it came about is interesting to understand. ISRG had a disruptive technology (DiVinci Robotic System) from Dr Frederick Moll, and good initial private equity financing to get started. The real secret to their success was bringing on board a brilliant businessman, Lonnie Smith, who kept costs under control, executed an amazing marketing plan.; and of course the technology works. Time will tell whether RMTI can do this themselves or find such a person to help
The above is an outstanding local business publication. RMTI is in suburban Wixom. The article is very positive with projections on sales and profits previously put out by Summer Street. The only cautionary comments are from a large local Health system stating that more clinical study data is needed before purchasing decisions can be made. This is common to all medical disruptive technologies. IMO short time stock price will continue to be influenced by the large short position and the big run up is years in the future depending on profitability. RMTI investor since 2002.
I bring this back only because I believe the stock will continue to gyrate under 10 to back in the 3's again and what I have posted after long exposure to the company is the only way cyberknife will grow as it deserves to
I won't be posting forawhile because I do realize most here are trying to make decisions involving short time money and my inormation is not helpful to that. My reason for appearing at all is that at my stage of life, sharing experienced information might be helpful to others.
Because there are recent intelligent posts on this board, I bring this back up from page 12. HNSN has nothing going, but has more than doubled in the last month because short time traders can make money through manipulation and that can continue for some time. ISRG has some problems, but the stock stays up because of their good numbers. It will be exciting to see how RMTI develops, and there are many factors, the most important of which is Rob's health and ability to take the technologies on the long profit journey, In the meantime, a buyout will not produce the same appreciation in the stock price. Many of my best investments got to the high profit stage, were taken private and have gone into orbit from there.