plfm... sorry for the delay in a reply, but
I had several things going and just did not get to it until now.
I think that a couple of things contributed to this drop in ARAY's price. I believe a few of them are short term as well.
One thing that contributed to it is the shorting of BLOOD-in-the-Water hedge players who are capitalizing on the stupidity of management at the moment...
like letting the tongue-tied, deceptive looking McNamara speak for ARAY at analyst events while Euan hides in his office...
unless you subscribe to the "management is smarter than the shorts" theory.
Fact is, ARAY started buying back shares in the fall and keeping them as "Treasury Stock"... and since the drop at the first of this year, they have added about double the number of shares compared to the fall buyback. A bit less than 700K total.
When the PPS rises again, the company can "sell" these shares back into the market for a profit... or they can decide later on to retire them and drop the float which would "officially" remove them and make shares harder to come by... although I'd bet they are pretty tightly held right now as treasury stock!
In addition to the "perception" game, there was one center in Stuart, FL, that closed due to financial problems... it has nothing to do with ARAY or SRS effectiveness in treating tumors... it is a matter of demographics in the area, and the financial crisis of an over-extended PA group IMO based on what I've seen and read.
PLus the market was spiraling down due tho the sub-prime mess, etc.
I have taken the opportunity to add more shares... and I have no idea where the bottom might be... but I will take more at this price around 8 give or take some.
So the reasons summarized:
1. Games by shorts/hedge players
2. Lack of understanding of the SRS difference from traditional RT... failure of management to make the case!
3. Unprofessional appearance of inept management in presentations to the investment analysts & financial community
4. Management making good numbers look bad by the "glutton" incentives for employees.
5. The market and economic worries in general
BTW... we can affect the 3 "management" related problems by contacting IR & BOD members with professional "to the point" complaints about some of these reasons!
And voting our shares AGAINST management proposals that we do NOT approve of... like incentives packages... the next time around.
I have a feeling that some of the large private shareholders are NO happier than we are. Might get someone's attention this time around.
JMO...
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