Looks like the managements of nvdq and isrg share the same philosophy: put the building blocks into place, and let the markets eventually price it in. They certainly are not day traders!
There's a rather ignorant (imo) sell piece on Novadaq that can be accessed via Google. The anonymous author recommends selling the shares because the stock has dropped and analysts have lowered their estimates. Time to buy!!
To me the most significant part of this announcement is that firefly will ship with ALL Xi systems. Apparently the value of firefly is such that it is no longer an optional feature. This is very exciting for both companies, but particularly for Novadaq....hence the pop in nvdaq shares today, and maybe yesterday. as well.
According to Barron's: even though the stock was down today on huge volume, the fact remains that there were more trades on the buy side than the sell side, and furthermore the volume of the trades on the upside was more than the volume of the trades on the downside ( "uptick/downtick ratio" was 1.07).
Based on this, I believe that a bottom may have been put in today.....time will tell. Comments?
Thanks Endo for all the info! Outstanding work! I'm surprised that the company would open up with individual investors such as yourself. Tremendous!!! Looks like the company is a screaming buy.
I think you're asking the right questions...unless Dave Martin's exit is material,( which I don't think it is).
Certainly never thought that the pps could be sliced in half.
The guidance about (only) 35% growth in the 3Q didn't help,but unless something else is afoot, that's not a worry. Today's news on Yahoo Finance references Taglich's renewing its buy rating but also lowering the TP from 19 to 16, based on "reduced minimum valuations" (that's read as LIfecell not pulling their weight).
But since Lifecell will be thrown overboard (IMO) the stand alone company's earnings will be immediately accretive. In the meantime we have to be patient.
Breaking off from LIfecell should be immediately accretive to earnings. Their world wide opportunity is also unfolding nicely. The rollout of the nuclear medicine application in 2015 can't hurt either.
Patience is a virtue.
" Asian sales in Japan and China - through partners - have not even begun yet (regulatory approvals coming)."
I'm not aware yet of any guidance or specifics regarding SPY sales/prospects in Japan or mainland China....can you fill me in with any references?
With the current pps of ~15...
and we compound at 40% (growth) going out 5 years, we come up with a pps of 80.
Now that's a buyout price I could live with!
Thanks for your post.
Small correction: " Recently, Intuitive won a negligence case by a jury vote of 10 to 2. That verdict will impact on other pending cases". Actually this was old news from 2013, spun by Bloomberg as fresh news to keep their negative narrative going. Let's hope the best is yet to come.
It's a classic, time honored strategy honed by Apple, Microsoft and a host of other companies. That is, lower investor expectations and set up a "beat" to boost the share price. Certainly no CEO is going to repeatedly mention 40% growth,and then fall short. jmo
Story is intact and improving.
Xi will include Firefly as a standard.
Terminating LIfe Cell agreement is likely....
Will be immediately accretive to revenue.
At the same time, the costs of selling are going down since hospitals are getting more comfortable with
Novadaq's products and outcomes.
Love the educational forums (4 this year) where 200 surgeons of multi specialties get a tutorial from the company. at each forum...talk about cheap advertising!
We must be patient over the next 2-3 years as the technology. acquisitions and sales force all combine to make the magic happen.
Secondary Sales Squeeze Investors
Slide in Technology, Health-Care Stocks Has Burned Those Who Bought Into Follow-On Offerings
A piece in today's (June 3, 2014) WSJ by Matt Jarzemsky may answer our questions. ( Just google the headline/author to read it if Yahoo disallows the link). Novadaq has been caught in a web of institutional selling, not particularly relating to Novadaq, but rather because of its status as a highflier in the med/tech space. This initially caused the selloff of similar companies, but has since continued because of nervousness by institutions who lost money buying IPOs and secondary offerings. That the bad news. The good news is that Novadaq's fundamental story is 100% intact and getting stronger. In time this draft(hurricane) will subside, and the stock will once again trade on its amazing fundamentals.
Sentiment is everything, and it changes all the time.
Keep the faith!
A good many of those institutions you cited will be back for a second helping, probably at a higher price than they sold at.
Between the two of us, we could just vote out the existing board and take over the company. I'd be honored to fill in as your assistant CEO, when you're OUS cutting deals with Japan and India. Perhaps other distinguished members of this panel would also be agreeable to selflessly joining our board of directors....comments?
Whereas the revenue shortfall and subsequent drop in the share price was triggered by SPY Elite, I have a hunch that
the the negotiations will end sooner, rather than later, and much to Novadaq's advantage. Arun does not strike me as the kind of person who would tolerate what is an intolerable situation for very long.