Two links & UPDATE
Bruce, I believe that press releases and times you asked about are given in post #909.
The following is a THRX update from 7/2 @ 16:31. Let's hope they are right about overreaction and "screaming buying opportunity"
UPDATE) Theragenics Shares Drop After Analyst Voices Fears Of Price Drop
Dow Jones Online News, Thursday, July 02, 1998 at 16:31
By Melanie Trottman, Staff Reporter
NEW YORK -(Dow Jones)- Theragenics Corp. shares fell 36% Thursday,
sparked by a Dain Rauscher note that cut ratings on several companies
involved in a technique for treating prostate cancer called
brachytherapy.
Brachytherapy is a process where a tiny radioactive implant is used
to destroy tumors. The Dain Rauscher analyst hinted that too much
radioactive material may come on the market, forcing prices lower.
"The market's reacting to Dain Rauscher's comments," said Nutmeg
Securities Ltd. analyst Kenneth Pounds. He added that the stock's sharp
descent is "a screaming buy opportunity."
Patrice Halbert, the Dain Rauscher analyst who issued the report on
the sector, wasn't immediately available for comment. But according to
the note, she lowered her rating on Theragenics to "neutral" from "buy"
and reduced fiscal 1999 earnings estimates to 67 cents from 77 cents.
She also cut her rating on North American Scientific Inc. to "neutral"
from "strong buy," and on Mentor Corp. to "neutral" from "buy."
Nasdaq-listed shares of Theragenics (THRX) fell $8.188 to close at
$14.813 on volume of 7.6 million shares. Average daily volume is 462,200
shares.
Shares of North American Scientific (NASI) fell $8.188, or 25%, to
$14.25. Shares of Mentor (MNTR) dipped $1.375, or 5.7%, to $22.75.
The downgrades reflect "the likelihood for the U.S. market to see
price pressure sooner due to growing potential for excess capacity," the
report said.
Sterne Agee & Leach analyst Frank Brown said the note heightened
competitive concerns that have been circulating in the industry for
weeks.
Theragenics makes therapeutic radiological devices, mainly to treat
cancer. The Norcross, Ga., company's products include TheraSeed, an
implant whose key active ingredient is Palladium 103. When implanted,
the device releases doses of radiation to destroy tumors from the inside
out. According to Brown, other companies gearing up to enter this
market.
"This panic is on a supposition that there will be a glut of
radioactive material" on the market, said the company's President and
Chief Executive Christine Jacobs. The fundamentals of the company, she
said, haven't changed.
The Dain Rauscher report said its enthusiasm on the market "has
cooled based on several new data points." One of those points is "newly
confirmed information that Amersham, the competitor to Theragenics and
North American, has escalated its capacity expansion sooner than we had
previously anticipated," the note said. "The window of upside
opportunity for Theragenics, North American Scientific and Mentor may
narrow."
At least one analyst disagrees. Salomon Smith Barney's Melissa
Wilmoth reiterated her "buy" recommendation on Theragenics Thursday. And
Pounds said the stock drop is an overreaction. His 1999 earnings
estimate is 80 cents a share. Brown's is 75 cents.
The company plans to release second-quarter earnings July 21, and
Jacobs said Theragenics is "comfortable" with analysts estimates of 10
cents a share.
-Melanie Trottman; 201-938-5260
Copyright (c) 1998 Dow Jones & Company, Inc.
All Rights Reserved.
|
