Tuesday, September 14, 2010

Bookkeeping: Restarting Thoratec (THOR)

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

Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012 FundMyMutualFund.com