Is It Time to Buy This Robotic Surgery Stock?
Stereotaxis' (NYSE: STXS) poor financial management certainly disappointed investors during its first attempt at a public listing, even after a much-hyped initial public offering (IPO) in 2004. The IPO priced at $8 per share and surged to an all-time high in 2007, reaching nearly $150 per share, which represented an increase of nearly 2,000%. A freefall based on dismal earnings and concerns about backlog reporting later culminated in a delisting. But that disaster led the company into the seemingly more capable hands of an investor-turned-CEO who has brought the company back to the public markets. It's time to take another look at the company's proprietary technology, management, and prospects to see if the company is a buy.
St. Louis-based company Stereotaxis' was founded in 1990. The company's greatest strength lies in its proprietary surgery technology for the treatment of cardiac arrhythmias. Its surgery systems are used in more than 100 hospitals and have received regulatory clearance in the US, European Union, Japan, Canada, and China. The company's key offering is the Epoch Solution, a remote robotic navigation system. The system includes the Niobe, a tool that navigates magnetically enabled tools inside the body by controlling a magnetic field. One of its uses is the steering of catheters for atrial fibrillation ablation procedures, which work by scarring or destroying tissue in the heart to disrupt faulty signals causing the abnormal rhythm.
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Source Fool.com
