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!
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.
April 24, 2014, 7:06 a.m. ET
NOVADAQ Announces Definitive Agreement to Acquire Aimago SA
"TORONTO, ONTARIO--(Marketwired - Apr 24, 2014) - Novadaq(R) Technologies. the leading developer and provider of clinically relevant imaging solutions for use in surgical and diagnostic procedures, announced today that it has entered into a definitive agreement to acquire all outstanding shares of Aïmago SA. Aïmago is a privately held medical imaging company, founded in 2008 as a spin off from Ecole Polytechnique Fédérale de Lausanne ("EPFL"), a Switzerland based academic and research institution.
Aïmago's lead product, the EasyLDI Perfusion Camera, incorporates patented, high-speed, full field laser Doppler technology. The design of the device is tablet inspired, and is capable of "point-and-shoot" perfusion imaging at the surface of the skin, without the need to administer any imaging agent to patients".
Sorry that Yahoo doesn't allow links.
This broke only a few minutes ago. Nvdq spending 10 million in cash and stock, with another 2.4 million later on. I believe this is a tremendous acquisition, and will jump start sales, especially in Europe, where this technology is already CE approved. It's also already cleared by our FDA!
Suggest google this for the full report. Arun is a genius! (imo).
Sentiment: Strong Buy
A good many of those institutions you cited will be back for a second helping, probably at a higher price than they sold at.
"Expect resolution of the Lifecell agreement saga by years end".
I thought this comment was significant.
Maybe Lifecell will blink and a better financial arrangement for Novadaq will be agreed to by year's end. Wishful thinking?
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.
There's no doubt that the marketplace links the 2 companies as one. The charts are almost identical over the past 10 trading sessions. Only when nvdq is profitable with luna and pinpoint will the chain be broken, imo. Then the tremendous opportunity of Novadaq will come to the fore. Thoughts?
If Lifecell wants to end the partnership, and Arun wants closure by year's end, then it sounds like Lifecell might be willing to abrogate the relationship earlier than full term in return for a severence fee.
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.
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?
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!
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
(From Globe Newswire, April1, 2014)
" the da Vinci Xi System is built to be compatible with Intuitive Surgical's Firefly(TM) Fluorescence Imaging System. While it is not currently available, we plan to seek regulatory clearance for use of Firefly Imaging with the da Vinci Xi System. This technology is currently available as an option with the da Vinci Si(TM) model"