Shares of medical robotics maker Intuitive Surgical (NASDAQ: ISRG ) are in free-fall today after yesterday's earnings, with the stock plummeting 4.7% after losing a bundle yesterday as well. Earnings aren't the disappointment, however: Intuitive destroyed analyst expectations and showed solid growth in both procedures and device sales. Investors haven't been so kind to the stock, however, and with shares of the company down almost 8% in the last five days alone, it's time to ask: Why is everyone selling this stock?
Investors in a panic attack
The company's financial footing certainly isn't the culprit. Intuitive drilled earnings-per-share expectations, topping projections by $0.58 and beating revenue estimates by almost $30 million. The firm also racked up double-digit growth in both categories over the quarter a year ago, including growth of more than 30% in EPS.
So, what's really behind Intuitive's fall? It's fear.
The company has been in the spotlight recently with concerns mounting about the safety of robotic surgery. Shares weren't helped when the Food and Drug Administration announced it would investigate the company's da Vinci surgical device's complaints, looking to evaluate if the costly machine (da Vinci devices cost around $1.5 million each) added any value over traditional surgeries. That was enough to spark fear among investors, who have panicked over the thought that robotic surgery could come under fire by safety regulators. The FDA's investigation isn't an indictment, however; it's simply a follow-up on complaints.
Top 10 Investments For 2016: BioDelivery Sciences International Inc.(BDSI)
BioDelivery Sciences International, Inc., a specialty pharmaceutical company, focuses on developing and commercializing products in the areas of pain management and oncology supportive care. The company uses its patented BioErodible MucoAdhesive (BEMA) and Bioral cochleate drug delivery technologies in the development of its products. The BEMA technology is a small erodible polymer film for application to the buccal mucosa; and the Bioral cochleate drug delivery technology encapsulates a selected drug or therapeutic in a cochleate cylinder. Its pain franchise consists of products utilizing the patented BEMA technology, including ONSOLIS, a fentanyl buccal soluble film for the management of pain in opioid tolerant adult patients with cancer; and BEMA Buprenorphine, which is in the development stage for the treatment of moderate to severe chronic pain, as well as for the treatment of opioid dependence. The company also engages in developing product candidates utilizing the B EMA technology for conditions, such as nausea/vomiting. BioDelivery Sciences International, Inc. was founded in 1997 and is headquartered in Raleigh, North Carolina.
Advisors' Opinion:- [By John Kell]
Shares of BioDelivery Sciences International Inc.(BDSI) jumped after the company disclosed favorable results for a Phase 3 study of a treatment for severe chronic pain. BioDelivery shares surged 45% to $9.04 premarket.
Top 5 Industrial Disributor Companies To Watch For 2015: Petroleo Brasileiro Petrobras SA (PBR.A)
Petroleo Brasileiro SA Petrobras (Petrobras) is a Brazilian integrated oil and gas company. It operates in five segments: exploration and production; refining, commercialization and transport of oil and natural gas; petrochemicals; distribution of derivatives, electrical energy, biofuels and other renewable energy sources. Directly or through its subsidiaries, Petrobras is engaged in the research, extraction, refining, processing, commercialization and transport of oil from wells, shales and other rocks, its derivatives, natural gas and other liquid hydrocarbons, as well as in activities related to energy, promoting research, development, production, transport, distribution and commercialization of all forms of energy. As of December 31, 2010, it had 132 production platforms, 16 refineries, 291 vessels, 29,398 kilometers of pipelines, six biofuel plants, 16 thermoelectric plants, one pilot wind farm, 8,477 service stations and two fertilizer plants, as well as presence in 30 countries.
Exploration and Production
The domestic oil and gas exploration and production efforts are focused on the three basins offshore in Southeastern Brazil: Campos, Espirito Santo and Santos. The Campos Basin, which covers approximately 115,000 square kilometers (28.4 million acres) is the oil and gas basin in Brazil. At December 31, 2009, the Company was producing from 41 fields at an average rate of 1,693.6 mbbl/d of oil and held proved crude oil reserves representing 90% of the total proved crude oil reserves in Brazil. At December 31, 2009, the Company held proved natural gas reserves in the Campos Basin representing 53% of the total proved natural gas reserves in Brazil. It operated 38 floating production systems, 14 fixed platforms and 5,472 kilometers (3,400.3 miles) of pipeline and flexible pipes in water depths from 80 to 1,886 meters (262 to 6,188 feet). At December 31, 2009, the Company held exploration rights to 21 blocks in the Campos Basin, comprising 5884 square kilometers (1.4 millio! n acres)..
Petrobras have made discoveries of light oil and natural gas in the Espirito Santo Basin, which covers approximately 75000 square kilometers (18.5 million acres) offshore and 14,000 square kilometers (3.5 million acres) onshore. At December 31, 2009, the Company was producing from 46 fields at an average rate of 40.9 thousand barrels per day (mbbl/d) and held proved crude oil reserves, representing 1% of the total proved crude oil reserves in Brazil. On December 31, 2009, the Company held exploration rights to 23 blocks, six onshore and 17 offshore, comprising 8623 square kilometers (2.1 million acres).
The Santos Basin covers approximately 348,900 square kilometers (86 million acres) off the city of Santos, in the State of Sao Paulo. At December 31, 2009, the Company produced oil from two fields and one exploration area at an average rate of 14.4 mbbl/d and held proved crude oil reserves representing 1% of the total proved crude oil reserves in Brazil. It produces hydrocarbons and hold exploration acreage in eight other basins in Brazil.
Refining, Transportation and Marketing
As of December 31, 2009, the Company operated 92% of Brazil�� total refining capacity and supplied almost all of the refined product needs of third-party wholesalers, exporters and petrochemical companies. As of December 31, 2009, the Company owned and operated 11 refineries in Brazil, with a total net distillation capacity of 1,942 mbbl/d. It operates an infrastructure of pipelines and terminals and a shipping fleet to transport oil products and crude oil to domestic and export markets. The refineries are located near the crude oil pipelines, storage, facilities, refined product pipelines and petrochemical facilities, facilitating access to crude oil supplies and other users.The segment also includes petrochemical and fertilizer operations. As at December 31, 2009, the refining capacity in Brazil was 1,942 mbbl/d and the average throughput was 1,791 mbbl/d.
T! he Company owns and operates a network of crude oil and oil products pipelines in Brazil that connect the terminals, refineries and other primary distribution points. On December 31, 2009, the onshore and offshore, crude oil and oil products pipelines extended 13,996 kilometers (8,698 miles). It operates 27 marine storage terminals and 20 other tank farms with nominal aggregate storage capacity of 65 million barrels. The marine terminals handle an average 10,000 tankers annually.
The Company operates a fleet of owned and chartered vessels. It provides shuttle services between the producing basins offshore Brazil and the Brazilian mainland, domestic shipping and international shipping to other parts of South America, the Caribbean Sea and Gulf of Mexico, Europe, West Africa and the Middle East. The fleet includes double-hulled vessels and single-hulled vessels, which operate in South America and Africa only.
Distribution
The distribution segment sells oil products, which are produced by the supply operations. At December 31, 2009, the BR network included 7,221 service stations, or 19.2% of the stations in Brazil. The Company supplies and operates Petrobras Distribuidora S.A., which accounts for 38% of the total Brazilian distribution market. BR distributes oil products, ethanol and biodiesel, and vehicular natural gas to retail, commercial and industrial customers. In 2009, BR sold the equivalent of 767.4 mbbl/d of oil products and other fuels to wholesale and retail customers.
The Company also distributes oil products and biofuels under the BR brand to commercial and industrial customers. The customers include aviation, transportation and industrial companies, as well as utilities and government entities. It also sells oil products produced by the Supply operations to other retailers and to wholesalers.
Gas and Power
The natural gas business includes four activities: transportation (building and operating natural gas pipel! ine netwo! rks in Brazil), acquisition and regasification of LNG, equity participation in distribution companies, which sell natural gas to the users, and commercialization (purchase and resale). In January 2009, the Company completed construction of two LNG terminals, one in Rio de Janeiro with a send-out capacity of 20 mmm3 /d (706 mmcf/d).
International
The Company have operations in 24 countries outside Brazil, which encompasses all phases of the energy business. It is focusing the international upstream activities in the Gulf of Mexico and West Africa. During 2009, the Company conducted exploration and production activities in 21 countries outside Brazil (Angola, Argentina, Bolivia, Colombia, Ecuador, the United States, India, Iran, Libya, Mexico, Mozambique, Namibia, Nigeria, Pakistan, Peru, Portugal, Senegal, Tanzania, Turkey, Uruguay and Venezuela). At December 31, 2009, the total assets of the International Segment represented 7.4% of the Company�� total assets.
Advisors' Opinion:- [By Rudy Martin]
In addition, we recommend buying shares in Brazilian energy giant Petroleo Brasileiro Petrobras S.A. (PBR.A).
Despite a gradual rise in crude oil prices, problems with Brazil's economy, compounded by obstacles in Petrobras's scramble to finance significant on-shore and off-shore hydrocarbon discoveries, have ganged up to erode PBR.A's stock price this year.
Top 5 Industrial Disributor Companies To Watch For 2015: Celldex Therapeutics Inc(CLDX)
Celldex Therapeutics, Inc., a biopharmaceutical company, focuses on the development, manufacture, and commercialization of novel therapeutics for human health care primarily in the United States. The company markets Rotarix to treat rotavirus infection. Its lead drug candidate, rindopepimut (CDX-110), is an immunotherapeutic vaccine in Phase III clinical trial to target the tumor-specific molecule, epidermal growth factor receptor variant III, as well as in Phase II clinical trial for the indication of recurrent glioblastoma. The company?s other lead drug candidates comprise CDX-011, an antibody-drug conjugate in Phase IIb clinical trial for metastatic breast cancer and melanoma indication; and CDX-1127, a human monoclonal antibody in Phase I clinical trial for the treatment of lymphoma/leukemia and solid tumors. Its additional clinical and preclinical programs consist of CDX-1401, an Antigen Presenting Cells Targeting Technology program in Phase I/II clinical trial to tr eat multiple solid tumors; and CDX-301, an immune cell mobilizing agent and dendritic cell growth factor in Phase I clinical for treating cancer, autoimmune disease, and transplant. The company?s preclinical products include CDX-1135, a molecule for treating renal disease; and CDX-014, a human monoclonal antibody-drug conjugate for the treatment of ovarian and renal cancer. It has research collaboration and license agreements with Medarex, Inc.; Rockefeller University; Duke University Brain Tumor Cancer Center; Ludwig Institute for Cancer Research; Alteris Therapeutics, Inc.; Thomas Jefferson University; 3M Company; University of Southampton; Amgen Inc.; Amgen Fremont; and Seattle Genetics, Inc. Celldex Therapeutics, Inc. was founded in 1983 and is headquartered in Needham, Massachusetts.
Advisors' Opinion:- [By Jake L'Ecuyer]
Celldex Therapeutics (NASDAQ: CLDX) shares tumbled 9.36 percent to $25.66 after the company reported positive Phase 2 rindopepimut data in patients with recurrent glioblastoma.
- [By Bryan Murphy]
A week ago, yours truly recommended adding EnteroMedics Inc. (NASDAQ:ETRM), Arrowhead Research Corp. (NASDAQ:ARWR), and Celldex Therapeutics, Inc. (NASDAQ:CLDX) to your watchlist, all as bullish candidates. Although ETRM was a bust, CLDX and ARWR are both still compelling. In fact, those two survivors merit an updated look, as each has moved further along its bullish path, and each looks like it's itching to put the pedal to the metal.
- [By Luke Jacobi]
Celldex Therapeutics (NASDAQ: CLDX) gained 12.91 percent to $32.70 after a bullish report out of Leerink Swann.
Shares of Pandora (NYSE: P) lost 10.11 percent to $24.26 as traders looked to take profit on the stock after shares posted a massive rally over the past 3 weeks.
- [By Bryan Murphy]
If you're looking to get the new trading year started on the right foot, then you may want to keep Celldex Therapeutics, Inc. (NASDAQ:CLDX), EnteroMedics Inc. (NASDAQ:ETRM), and Arrowhead Research Corp. (NASDAQ:ARWR) in your back pocket if not in your portfolio. Why? Because these three small cap stocks are positioned to deliver big breakouts, if they're not already doing so. Here's a closer look at each, and exactly what you need to watch for with CLDX, ARWR, and ETRM.
Top 5 Industrial Disributor Companies To Watch For 2015: SeaChange International Inc.(SEAC)
SeaChange International, Inc. provides multi-screen video products and services that facilitate the aggregation, licensing, management, and distribution of video, television programming, and advertising content to cable system operators, telecommunications companies, broadcast television companies, and mobile communications providers worldwide. The company operates in two segments, Software and Media Services. The Software segment offers back-office products, including SeaChange Axiom, an on-demand back office software that allow operators to centralize video distribution systems, as well as video streamers; advertising product solutions, such as video-on-demand, digital video recorders, and over-the-top services; and home gateway product solutions, which include Nucleus, a hybrid gateway software product that provides control over channel changes, VOD/DVR playback, and trick mode set-top box functionalities. This segment also provides professional services, installation, training, project management, product maintenance, technical support, and software development related services. The Media Services segment offers content for video-on-demand and pay-per-view platforms; and marketing, promotional, and production services to cable operators and telecommunications providers. This segment also sources, acquires, packages, and markets video-on-demand services by providing access to content from local and Hollywood studio providers in various formats, including music videos, television programs, and feature length movies. The company sells and markets its products and services through a direct sales organization, independent agents, and distributors. SeaChange International, Inc. was founded in 1993 and is headquartered in Acton, Massachusetts.
Advisors' Opinion:- [By Monica Gerson]
SeaChange International (NASDAQ: SEAC) is estimated to post a Q2 loss at $0.18 per share on revenue of $26.80 million.
China Gerui Advanced Materials Group (NASDAQ: CHOP) is expected to report its Q2 earnings.
- [By Johanna Bennett]
SeaChange (SEAC) fell 16.5% to $12.03 after the company’s guidance for the fiscal fourth quarter fell well below analysts’ expectations.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on SeaChange International (Nasdaq: SEAC ) , whose recent revenue and earnings are plotted below.
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