Why did this company NOT do a secondary when the stock was at 20x revenues ? Instead they have a line of credit for 50m that will result in dilution anyhow. They could have done a secondary for 5m shares at 35 and they could now buy all of those shares back and still end up with a 100m in the bank. They obviously knew the stock was way overvalued since management sold a net 1.4m of their own shares over the last 6 months.
The first 6 months are behind last year in sales of rio systems. They have to match last year for the next 2 Q's to get to the low end of guidance. That seems questionable.
If number of procedures increases over the next 2 Q's at the same rate it did from Q1 to Q2 they won't make the low end of procedures guidance.
It will be interesting to see what management has to say about how realistic the guidance for the year is when CC takes place. It looks like there is at least an even odds chance of additional disappointing news over the next two quarters given that guidance looks to be optimistic.
