Not looking good for transenterix
by james | February 29, 2016 3:43 pm
Just read a downgrade for trxc from streetsweepers calling the company an operational disaster. And they own stocks. Any thoughts.
Source URL: https://www.stockgumshoe.com/2016/02/microblog-not-looking-good-for-transenterix/
For folks who are wondering, this is a question about the StreetSweeper negative article that came out last week, you can find that piece here:
http://thestreetsweeper.org/undersurveillance/TransEnterix__Nine_Top_Reasons_TRXC_Is_An_Operational_Disaster
I think it’s important to read analysts who are negative about stocks to get a fuller picture, so it’s certainly worth a look — though at first pass this doesn’t seem to be one of their stronger or more convincing pieces (StreetSweeper has done some good work in the past, I think). I haven’t looked at the details of the reverse merger that brought Transenterix public, which is a major criticism from the Street Sweeper folks, but that’s not terribly germane to the future. The stock is obviously overvalued based on its current business, but investors aren’t buying it because of the current business — they’re buying it because they think Transenterix will be able to sell a lot of surgical robots once they get FDA approval in the next month or two.
I don’t personally own this one, I try to avoid buying biotech stocks that are covered in this space — but I’m also generally a little skeptical of expectations for rapid sales uptake in medical equipment — if they are a success eventually, my guess is that there will be many opportunities to buy along the way as they have setbacks, sales hiccups or whatever (as there were with Intuitive Surgical). That doesn’t mean I’d short the stock or don’t like it — I do think it’s quite risky to short stocks that are heading into anticipated FDA response periods, since investor response to FDA news can sometimes be dramatic.
Promo round two started this afternoon. Nice chart off the bottom.
We are so caught up in the moment that when a new technology comes along, the negative pump and dumper reports come out. They are probably invested in ISRG and it’s at $583.05. TRXC is at $4.10. I bought it at $2.78 and $3.05. I believe there are surgical groups that will buy this and try it out. It take training to use a robot surgical device. If we can come out with a Surgibot 2 with total automation, on surgical team handling 100 operations all at the same time. I believe this is just the beginning of a surgical revolution. I’ve written them 4 letters. I believe they will use MIT and other research universities, e.g., Case Western Reserve, etc.; get preliminary approval on total automation; execute it, and sell a lot of them and we will have another monster surgical stock. It will be worldwide competition for these surgery patients. Do we want to be the surgery leader or the surgery follower?
Go to this web address: http://www.thewallstreetfox.com/2016/02/the-evolution-of-transenterix.html. Here’s a guy who has owned TRXC ever since it was called SFES on the OTC. He has studied this stock inside out. He keep acquiring more and building his position – what we call scaling into a stock. The mark of maturity in purchasing stocks is self control, research, manage, manage, manage. What are you trying to achieve? An ego trip short ride or an ego trip long ride, baby, ride. I’m just a shot a away! I’m just a shot away! I’m just a shot away! And I haven’t had any alcohol since Vietnam 1970. I’m just referring to a shot of Joe!
Hey bill897 welcome to the Gummune top shelf. 🙂 The current biotechnology thread is here: http://www.stockgumshoe.com/2016/02/special-commentary-turbulence-for-esperion/ . We look forward to your input and sharing with you. Best2YouAlways-Benjammin’