Fundamentals Look Great...And, yet, TOS sells off? All is going according to TSO3's plan with development on all fronts and hiring staff to keep up...
Could this be short selling? This stock has a strong pattern of responding very positively to news (because news has always been positive) and analyst coverage (also always positive); but, also TOS has an obvious history of declining post quarter and cc, because it is anticipated that the news is all out at the cc and there will be a lull for a few weeks or months. Wise? and aggressive short sellers know this and might see an opportunity to take advantage, and cause a cascade of margin calls and take out a ton of stops on the way down.
My impression is that RR may have emboldened the shorts even more by intimating that their won't be much news in the very near term, or until the EU VP4 installs start late next month? and the new pass-through sterilizer is rolled out in early 2017, or until the FDA submission for duodenoscopes is sent in ?January, or there is an investor day or update in very early January (to report that sales exceeded expectations during Getinge's traditionally strong quarter - reps need to sell now before the year end if they want those bonuses!), or there are some strategic installations that want to announce that they have (for their patients and docs) the latest best disruptive low temp sterilizer and that their scopes are sterile, (not contaminated as at present and at other health care facilities). While all of these latter will be very good for TOS, they might be a month or more away.
Should RR et al get it together to release news unexpectedly, or earlier than anticipated, or should new analyst coverage be announced, (there were more US analysts on the cc than ever before - wasn't that Lake Street Capital's health care analyst (?Jackson) on the call asking a question, for the first time?) these shorts will be caught out and squeezed hard, as they were back at 1.50, particularly if the coverage comes out of the US as GoPats has suggested is possible. (Too bad National Bank didn't wait until the cc to put out their analysis!!)
Just some thoughts.
BTW, with fundamentals strong, nothing negative whatsoever around the corner, and more very positive news coming, I continue to add to my position.
Have a great weekend!
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