Tuesday, September 14, 2010

Bookkeeping: Restarting Thoratec (THOR)

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Thoratec (THOR) is an old medical device name we last held June 2009.  Because my long exposure has been sold off heavily the past 3-4 sessions, I am going to take a bit of a flier here as the name has blown through key resistance levels on huge volume.  Already at 11:15 AM it has done 1M shares which is the normal daily total.  I can't find any news so this would signal to me, "someone knows something".  I will restart with a 1.4% exposure today and if the company can hold these supports, I'd be willing to add as this stock - unlike so many others - is not overbought as it has done little during the September rally.   I am very curious as to what is driving the name today.


Technically, either this is the start of something good, or this is a quick game of chicken in which the computers pulled a fast one to pull in people like me, waiting for such a stock to show signs of life.  If its the latter case, we'll reverse back down shortly and this trade will be 'bad'.

Fundamentally, the company reported a very nice quarter in late July but in the nonsense world of Wall Street, it guided to a $380M - $385M revenue year versus analysts $387M.  For that $2M-$7M "miss" the company dropped from $42 to $35 instantly and went on to have a terrible 6 weeks, plunging to as low as $32.  Which pretty much exemplifies why CEOs manage to the quarter rather than to the long run...

(from late July)
  • Heart device maker Thoratec Corp. said Thursday its second-quarter profit surged on strong demand for its HeartMate II heart pump.  The company also issued full-year estimates for revenue and earnings that fell short of Wall Street expectations, and that sent shares tumbling down more than 14 percent in aftermarket trading.
  • Thoratec said net income rose to about $16 million, or 27 cents a share.  Excluding one-time items, adjusted earnings amounted to $22.4 million, or 34 cents a share, compared with $11.6 million, or 19 cents a share, the company said.  Analysts surveyed by Thomson Reuters were expecting a profit of 32 cents a share.
  • Revenue jumped 37 percent to $95.1 million from $69.2 million a year earlier. Analysts forecast an average revenue of $95.3 million.
  • Thoratec expects adjusted earnings per share to range between $1.19 and $1.23, reflecting increased operating leverage. Analysts predict income of $1.23 per share.
  • The company said fiscal year 2010 revenue from continuing operations will range from $380 million to $385 million, below the $386.9 million forecast by analysts.


[Dec 16, 2009: WSJ -Thoratec: Giving a Heart a Hand]
[May 8, 2009: Thoratec Executes Well in Healthcare Space]
[Feb 19, 2009: Thoratec Acquires Heartware]
[Feb 6, 2009: Thoratec Beats; Market Yawns]
[Dec 5, 2008: Thoratec with Positive Data]
[Oct 30, 2008: Thoratec Smashes Earnings; Somehow Guides Up]
[Aug 4, 2008: One for the Radar - Thoratec]


Long Thoratec in fund; no personal position

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