Comments on Paolo Gorgo's articles RSS Syndication from SeekingAlpha.com http://seekingalpha.com/author/paolo-gorgo/articles http://seekingalpha.com/article/187180/comments?source=feed#comment-888624 888624 Mon, 08 Feb 2010 20:29:52 -0500
"Beginning with the fiscal year commencing on 1 July 2010 and for each fiscal year thereafter, the total annual amount of non-salaried management compensation, including the aggregate amount of both cash bonuses and the cash value of stock options as determined by the Black-Scholes method, shall not exceed 50 percent of the lesser of the company’s total net free cash flow or total net after-tax profit as reported to the Securities and Exchange Commission for such fiscal year."]]> http://seekingalpha.com/article/187180/comments?source=feed#comment-888158 888158 >Jefferies boosts Accuray rating A Jefferies & Co. analyst upgraded medical radiation equipment maker Accuray Inc. Monday on the sales potential of its CyberKnife system. Dr. Joshua Jennings raised his investment rating on the shares to "Buy" from "Hold" and boosted his target price on the stock to $8 from $6.60. He said in a research note that new orders of $92.1 million suggest demand for the CyberKnife system has been good despite "constricted hospital capital equipment spending." ... "We believe in the innate technology value of the CyberKnife system, and accelerated clinical interest and adoption could precede long term positive clinical data," Jennings wrote in a note to clients. http://finance.yahoo.com/news/Ahead-of-the-Bell-Jefferies-apf-4244612006.html?x=0&.v=1 Donzoab: as I wrote to you also in the other article's comment section, the elephant in the room is that the technology might be very interesting for a competitor, and Accuray a decent acquisition target, at this price. PP: about one third of shareholders recently voted against the Company’s Performance Bonus Plan - may be a way to send a strong message to management. >>2) The stockholders approved the Company’s Performance Bonus Plan, the purpose of which is to motivate certain executives to achieve corporate or business unit performance objectives and to reward them when those objectives are satisfied: 22,891,474 voted "for" - 10,202,700 voted "against" http://investors.accuray.com/phoenix.zhtml?c=177244&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd2l6YXJkLmNvbS94bWwvZmlsaW5nLnhtbD9yZXBvPXRlbmsmaXBhZ2U9NjczNjA5MSZhdHRhY2g9T04mc1hCUkw9MQ%3d%3d]]> Mon, 08 Feb 2010 14:45:44 -0500
This morning Jefferies upgraded the stock:

>>Jefferies boosts Accuray rating

A Jefferies & Co. analyst upgraded medical radiation equipment maker Accuray Inc. Monday on the sales potential of its CyberKnife system.

Dr. Joshua Jennings raised his investment rating on the shares to "Buy" from "Hold" and boosted his target price on the stock to $8 from $6.60. He said in a research note that new orders of $92.1 million suggest demand for the CyberKnife system has been good despite "constricted hospital capital equipment spending."

...

"We believe in the innate technology value of the CyberKnife system, and accelerated clinical interest and adoption could precede long term positive clinical data," Jennings wrote in a note to clients.

finance.yahoo.com/news...

Donzoab: as I wrote to you also in the other article's comment section, the elephant in the room is that the technology might be very interesting for a competitor, and Accuray a decent acquisition target, at this price.

PP: about one third of shareholders recently voted against the Company’s Performance Bonus Plan - may be a way to send a strong message to management.

>>2) The stockholders approved the Company’s Performance Bonus Plan, the purpose of which is to motivate certain executives to achieve corporate or business unit performance objectives and to reward them when those objectives are satisfied:

22,891,474 voted "for" - 10,202,700 voted "against"

investors.accuray.com/...]]> http://seekingalpha.com/article/187180/comments?source=feed#comment-888063 888063 Mon, 08 Feb 2010 13:54:37 -0500
However, bonus policy can be changed and/or management can be replaced. Check your inside holders. You only need about 20 large shareholders to agree and you’ve got control of this company and none of those 20 are affiliated with management. Since they have stuck it out so far, even through the downturn into the $3s, don't look for these shareholders to invoke the Wall Street Rule. The Gang of 20 has demonstrated that they are committed to CyberKnife technology, not necessarily Accuray management. I like Dr. Thomson and hope to see him continue as CEO but he needs to realize the importance of this issue and his vulnerability thereon. If management doesn't start to share a reasonable portion of the benefits with those who shoulder 100 percent of the financial risks of this enterprise, they are going to wake up one morning and find they themselves trying to outmaneuver a group of shareholders holding a majority of the outstanding votes. In other words, looking for a job.]]> http://seekingalpha.com/article/187180/comments?source=feed#comment-887233 887233 Mon, 08 Feb 2010 07:31:01 -0500 When will they find a means to a larger recurring revenue stream.

Great device, lousy management. Excessive use of stock options.
Doesn't add up to a great investment.]]> http://seekingalpha.com/article/187180/comments?source=feed#comment-887121 887121 Mon, 08 Feb 2010 03:42:51 -0500
“CyberKnife is a frameless whole-body image guided robotic radiosurgery system which uses precisely targeted radiation to destroy tumours anywhere in the body usually in less than 3 treatment sessions termed factions. It is a revolutionary system which has expanded the potential of precision radiosurgical treatment to every part of the body allowing the delivery of tumorcidal doses of radiation while sparing delicate adjacent tissue. The technology is unparalleled in the world as it utilizes multiple small radiation beams generated from a linear accelerator mounted on a robotic arm and image guidance to destroy neoplastic tissue. Each beam is aimed with submillimetric precision permitting delivery of extremely high doses of radiation within a hair’s-breadth of normal tissue and organs. Additionally, because of its precise real-time image guided robotic feedback, the CyberKnife can also perform radiosurgery on moving tissues with similar targeting accuracy to stationary lesions. The device is revolutionizing tumour treatment as it is the only radiation technology in the world that can tract tumour movement as a patient breathes. Patients are treated in an outpatient setting without discomfort, loss of blood or the need for rigid immobilization. The technology provides a nonsurgical treatment option for patients who have inoperable tumours, surgically complex tumours or those who prefer an alternative to surgery.

“At present, more than 75,000 patients have received CyberKnife treatment world-wide for tumours of the central nervous system, head and neck, spine, lung, pancreas, liver, kidney and prostate at over 175 medical centers. As a result, a significant body of preliminary evidence has emerged demonstrating the clinical efficacy of the CyberKnife for the treatment of cancer and other neoplastic conditions. Multiple clinical outcome studies have demonstrated rapid, dramatic and sustained improvements in tumour pain and quality of life following CyberKnife radiosurgical treatment. Similarly, published studies have also demonstrated that treatment with the CyberKnife yields superiour or equivalent tumour control rates to many surgical and radiotherapy treatment strategies currently utilized in North America and Europe today. The CyberKnife outcome data is even more attractive from a resource allocation perspective as it is based on an outpatient treatment paradigm in which the vast majority of patients are treated in less than 4 daily fractions each lasting on average less than 1 hour. Comparatively, tumour surgery requires significant hospital resources and often has limited applicability in the management of cancer because of elevated risks associated with patient age, co-morbid disease or advanced oncologic stage. Conventional radiotherapy also frequently requires significant resource allocation as treatment usually occurs on a daily basis fractionated over a period of weeks.”

www.alfred-plantagenet...
]]> http://seekingalpha.com/article/181099/comments?source=feed#comment-887108 887108 Mon, 08 Feb 2010 02:57:17 -0500 Janfersing: very interesting and revealing comment. It certainly added a lot to the understanding of this story.
Best of luck with your health and for your appeal.
Donzoab: the elephant in the room is that the technology might be very interesting for a competitor and Accuray a decent acquisition target, at this price. ]]> http://seekingalpha.com/article/181099/comments?source=feed#comment-881029 881029 Wed, 03 Feb 2010 17:39:07 -0500 Also janfersings comment gave so much more information and it does seem, as usual, that some medical providers are more interested in their financial interests than their patients health.
Best of luck with your recovery and compensation janfersing]]> http://seekingalpha.com/article/181099/comments?source=feed#comment-844476 844476 Mon, 11 Jan 2010 05:33:58 -0500 http://seekingalpha.com/article/181099/comments?source=feed#comment-836383 836383 Wed, 06 Jan 2010 15:44:39 -0500 Accuray need to communicate more of what the patents and facilities are saying about the product. If it works that great spread the news. For example, The thnk the George Washing Hospital, Washington DC, has a commercial about the Cyberknife system on the radio most every weekday. I believe they do it a few times a year.

]]> http://seekingalpha.com/article/181099/comments?source=feed#comment-836289 836289 Wed, 06 Jan 2010 14:52:17 -0500
Naturally I searched many of the alternative treatment methods, and CK, although new (in medical terms), was easily a persuasive first choice. Only five out-patient treatments, short term side effects, and almost no biological failures. I had been sent to an IMRT physician who offered 42 out-patient treatments, more and longer possible side effects, etc, etc. And of course CK is less expensive to the insurance company as well ! So what's not to like ?. Well, let me tell you ......

There are three problems - and they are key to the lack of financial success of CK so far. First, the CK physician is not in my primary care physician's network. Second, and most important, prostate cancer treatment using CK is NOT covered by Medicare in Texas, although they ARE covered in 37 other States. And CK treatment for many OTHER cancers IS approved by Medicare in Texas. And third, they do not have the support of the other pysicians because they are a disruptive technology which is an economic threat to them.

I am currently in the fifth level of appeal process, which has gone on for over a year, of the refusal of my insurance company to cover the treatment - they take their clue from Medicare coverage, even though I am technically not ON Medicare.
In the meantime, an additional PSA test last July resulted in a recommendation that I do something, so I got the CK treatment by offering to pay for it myself. (~ $21,000). My side effects have essentially disappeared, and a PSA test in early February will hopefully confirm the dead cancer cells are being flushed out of my system. My appeals have been coached and most recently underwritten financially by the good folks at Accuray, with whom I have the highest personal regard and certainly great appreciation.
As a result I have financed my own trip to talk to legislators in Washington on their behalf, have joined Project Zero, and am part of a volunteer task force working to get the Medicare non-coverage reversed in Texas, Oklahoma, New Mexico, and Colorado. (We are all combined in a single Medicare territory controlled by a single contractor). But I digress......

The third reason for slow progress of CK treatment, and the most important, is that the Radiation Oncologist who treated me can, in the same day, also treat brain cancer, lung cancer, liver cancer, and pancreatic cancer.. etc In doing so he steps on the financial toes of a Urologist, a surgeon, a Pulmanologist, etc, etc. So are they going to refer patients to him ? Not hardly.

Additionally, since the CK has only been approved for 10 years, the history of biological successes is short. And, to hedge their bet, CK is only recommended for Cancers that are detected early and are localized. A metasticized cancer is not normally treated .
So how do you detect cancer early ? That's the big issue. With prostate and some brain tumors it is easier. Basically, however, you can (and many do) have cancer in their body for a long time before symptoms become evident. But that's why we retired folks go to our physicians for regular checkups. And, while we can easily and inexpensively check our weight, temperature, blood pressure, and even blood sugar at home - as yet we do not have a method of checking for cancer. (another investment opportunity ?)
Breast cancer is also more easily detected at home, but CK treatment for breast cancer has not yet been approved.
When I recently talked with my radiation oncologist here in Ft. Worth, I asked how other his other (than prostate) cancer patients were diagnosed. His answer was "accidentally", and he went on to explain that patients getting an XRAY, CAT Scan, or bone scan for some other ailment sometimes have an indication on their scan that suggests more investigation, and it would turn out to be cancer. As a consequence, his local Center for Cancer and Blood Disorders gets limited referrals and has had their machine for 3 years and has treated only around 125 prostates. It sits idle much of the time. CK prostate cancer treatment is covered by Aetna nationally, and by some of the Blues in some instances, but most commerical insurance companies follow Medicare and that's a major reason why our healthcare system is so screwed up. It's not the PATIENT that is the priority, but the income to docs and their friends in the insurance business.


I am not sure how Accuray is compensated, but don't believe they are compensated for each procedure, like the Lasik eye treatment folks, and therefore they may be trying to change that process. But if the patients aren't referred, little else will help.

Let me tell you something else before I quit. Major cancer centers in the U.S. are recognized as Johns Hopkins in Baltimore, M.D. Anderson in Houston. Probably others, with these two will make my point. Johns Hopkins will drown you in email newsletters for all kinds of medical treatments, but none of their cancer treatments newsletters even show CK as an option. Why, because their major competitve hospital in Baltimore has TWO CK installations. Similarly, you will not hear about CK from M.D. Anderson. Why, because they have a financial arrangement with a CK competitor that gives them special pricing for an exclusive arrangement, even though the competior's equipment is not as technologically superior. I am not sure about Sloan Kettering, but these two should make the point, and my inquiries to each of them go unanswered.

I am convinced that Accuray has the technology of the future, and you can get on their web site to confirm that statement with many videos showing successful treatments for otherwise hopeful cases.. Successful trials and studies are and will continue to be published and successful patient care stories will continue to spread the word.. Unfortunately ACCURAY stock will not be an overnight success, so if you buy it, be very patient. I am holding on to my loser, but intend to increase my investment when I win my appeal and when we reverse the Medicare coverage decision in Texas.
I am in the phone book if anyone would like more information.]]> http://seekingalpha.com/article/181099/comments?source=feed#comment-835735 835735 Wed, 06 Jan 2010 10:59:36 -0500 http://seekingalpha.com/article/181099/comments?source=feed#comment-835375 835375 Wed, 06 Jan 2010 07:53:13 -0500 The company simply cannot turn a profit, has not generated any free cash flow, and still has not shown how they can actually make any money above salaries, SG& A expenses and options sales.

Throw out this management team and sell this technology to a company that can truly run with it. Cyberknife is fantastic. ]]> http://seekingalpha.com/article/178408/comments?source=feed#comment-809846 809846 Thu, 17 Dec 2009 06:55:30 -0500 http://seekingalpha.com/article/173565/comments?source=feed#comment-764241 764241 Tue, 17 Nov 2009 15:26:59 -0500
To complete the article, here is the link to Tier 1 Research comments about Cramer (there's more than I quoted):

T1R Insight: Cramer blows it with call on Equinix

t1r.com/client/view.ph...


]]> http://seekingalpha.com/article/173565/comments?source=feed#comment-763150 763150 Tue, 17 Nov 2009 03:25:10 -0500 http://seekingalpha.com/article/142824/comments?source=feed#comment-548432 548432 Tue, 16 Jun 2009 08:41:27 -0400
Yesterday, Equinix announced the exercise of the Overallotment Option for its Convertible Subordinated Notes Due 2016 (an additional $48.75 million aggregate principal amount).

On June 10, 2009, Standard&Poor's Ratings Services assigned its issue-level and recovery ratings to Equinix Inc.'s (B+/Stable/--) new $325 million 4.75% convertible subordinated notes. The issue-level rating is 'B-' (two notches below the company's corporate credit rating).

www.alacrastore.com/st...

]]> http://seekingalpha.com/article/142824/comments?source=feed#comment-544400 544400 Fri, 12 Jun 2009 16:14:48 -0400 http://seekingalpha.com/article/134924/comments?source=feed#comment-516263 516263 Sun, 24 May 2009 15:28:06 -0400
Bottom line... This is one for the watch list.]]> http://seekingalpha.com/article/139193/comments?source=feed#comment-514227 514227 Fri, 22 May 2009 09:36:23 -0400 http://seekingalpha.com/article/119476/comments?source=feed#comment-382093 382093 Tue, 10 Feb 2009 08:47:20 -0500 http://seekingalpha.com/article/117937/comments?source=feed#comment-376383 376383 Thu, 05 Feb 2009 00:56:26 -0500 http://seekingalpha.com/article/117937/comments?source=feed#comment-375224 375224 Wed, 04 Feb 2009 06:59:47 -0500 http://seekingalpha.com/article/117937/comments?source=feed#comment-373947 373947 Mon, 02 Feb 2009 20:40:00 -0500
The offer is a commodity (real estate) seekign to capture fast shrinking corporate budgets, particullarly in the financial sector. With all sorts of real estate prices coming down why would anyone want to pay 2.6 times book value for a company who historically has delivered value destroying, sub 5%, returns on (book) equity?

This stock is only down 25% from the peak and is a great short in my view.

DISCLOSURE: Short DLR]]> http://seekingalpha.com/article/111802/comments?source=feed#comment-354872 354872 Tue, 13 Jan 2009 16:39:24 -0500
DFT may now be interesting as a speculative investment for risk-tolerant investors - there is an interesting heads up here:

www.telecomramblings.c.../

I would still weight very carefully, in my investing decisions, the potential costs the Company might suffer from the suspended building activity.

I see Santa Clara as a nice potential acquisition target (Equinix?) and hope they will move toward restructuring their goals, that they seem uncapable to achieve right now.

Sorry for the delayed response... ]]> http://seekingalpha.com/article/111802/comments?source=feed#comment-351357 351357 Fri, 09 Jan 2009 20:27:59 -0500 http://seekingalpha.com/article/111802/comments?source=feed#comment-348204 348204 Wed, 07 Jan 2009 01:34:03 -0500
Higher Prices Loom For Data-Site Users

online.wsj.com/article...
]]> http://seekingalpha.com/article/111802/comments?source=feed#comment-336298 336298 Tue, 23 Dec 2008 00:37:46 -0500
-John R]]> http://seekingalpha.com/article/102028/comments?source=feed#comment-293773 293773 Wed, 29 Oct 2008 16:19:58 -0400 http://seekingalpha.com/article/102028/comments?source=feed#comment-291775 291775 Mon, 27 Oct 2008 15:41:59 -0400 http://seekingalpha.com/article/102028/comments?source=feed#comment-291776 291776 Mon, 27 Oct 2008 15:41:59 -0400