I spoke to management and to two of the four analysts having current recommendations on the stock (short-term hold).
Collectively, they cite 4 reasons for the recent weakness (none of which involves bad news from FDA. Rather, all were optimistic.
1. Cancellation of G.S. presentation. Pres. Gail Naughton, who was to make the presentation, had an emergency appendectomy. After consulting with G.S., and with total agreement, both thought it best to postpone. ATIS said "the first two questions would be: 'when is the reinspection and when do you expect approval?'" Since they couldn't answer and, in fact, didn't even want to speculate publicly (may upset the FDA somehow), it was a perfectly good decision. Public viewed it as a negative, however.
2. Obviously the warning letter. A former FDA inspector told me that it was no big deal; done all the time. But couldn't understand why the FDA did a full pharm inspection which is very rigid rather than a medical device inspection which they would have easily passed.
3. ORG's poor performance after receiving approval.
4. Co. also said the very uninformed negative hype and calls for management changes etc.on the chat boards actually does have an effect on the price. Claudia does monitor the internet and said it's highly inaccurate and that they do have a problem with it.
There is also another observation that many, many stock recommended by Business Week, Forbes etc. that follow a similar pattern. A 2 to 3 day rise, then a sharp pull back. Usually, then, the stock begins a more sustainable longer term rise. (Let's hope that's where we are now).
Watched pots never boil, unfortunately. Don't focus too hard, and, hopefully, we'll have a good, hot cup of tea shortly. |
