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How do you manage to find a tech company with spectacular results that trades around its 52-week low? Well, welcome to FoxHollow Technologies (NASD:FOXH) which "engages in the design, development, manufacture, and sale of medical devices primarily for the treatment of peripheral artery disease."

This company has run its revenue from $2.6 million in 2003 to $38.6 million in 2004 to $128.2 million in 2005. The company had an operating loss of $13.5 million last year. For Q1 06, revenue more than doubled from $21.5 million to $46.6 million. The loss from operations for the quarter was $15.2 million, but stock-based compensation was $14.8 million of that. The company said its sizeable relationship with Merck (NYSE:MRK) was going well.

Guidance for Q2 is $46 to $48 million, with the Merck contribution dropping some before picking up again in the second half, or as the company put it: "Research collaboration (with Merck) revenue will decrease in the second quarter and then increase in the second half of the year, as more significant numbers of patients are enrolled in the two new studies." Full-year guidance is for $210 to $220 million, a big jump over 2005.

FoxHollow has been operating with an interim CEO, which may be perceived as a negative, but it certainly has not hurt results. The slight slowdown in Q2 appears to be revenue moving to later quarters this year. In the meantime, the company's stock has gone from a 52-week high of $55.20 to it recent price of $27.30.

It is hard to find enough wrong with the company to account for that kind of drop.

FOXH 1-yr chart:

Douglas A. McIntyre is the former Editor-in-Chief and Publisher of Financial World Magazine. He is also the former president of Switchboard.com, which was the 10th most visited site in the world at the time, according to MediaMetrix. He has been chief executive of FutureSource LLC and On2 Technologies, Inc. and has served on the boards of TheStreet.com and Edgar Online. He does not own securities in companies he writes about. He can be reached at douglasamcintyre@gmail.com.

Source: FoxHollow Gets Cuffed Around (FOXH)