Accuray, Inc. (NASDAQ:ARAY)

Nice growth prospects as uses for CyberKnife system expands, solid balance sheet, beaten-down stock price. What's not to like?!

Accuray's niche is robotic laser surgery. This has low toxicity and a dramatic impact on cancer treatment (though no treatment is perfect). ARAY is both first mover and top dog in this particular area because I believe its CyberKnife to be the best available technology as reflected by widespread adaptation. Its acquisition of TomoTherapy allowed it to expand into related fields. Varian Medical is the main competitor with differing products providing similar methods of treatment. But the essential premise I base my investment thesis on is that hospitals are not nearly saturated with either technology. There are hundreds of hospitals with these technologies, eventually there could be thousands in the USA alone. If the CyberKnife can consolidate its position and/or displace Varian Medical, the sky is the limit. But if Varian Medical starts to take market share as saturation approaches, the outcome is less rosy.

Yahoo small cap growth (P/S <1).

Buying at a discount and there is really nothing to show why they are so undervalued except for S&P downgrade scare. Waiting for some consolidation

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There are other, more important factors than 3D beam positioning when treating a cancer patient. The Accuray system has quite a low output and is limited to one energy. This means that treatment times are MUCH longer (up to 10x). This means that the patient throughput is much lower than with a Varian accelerator = loss of income. It also means that the patient has to lie on the table for a much longer time and that is VERY uncomfortable even for a healthy person!

Could they be the next ISRG with their CyberKnife? I have liked this stock for awhile now. The recent outbreak is for real. The gap is not being filled. With that said, I think this one goes much higher as the CK is being developed for other uses such as brain, neck, liver, lung, breast, and prostate cancer. Radiosurgery will become the preferred method of treatment over invasive surgery. CK is well positioned to take advantage of this trend. Although Varian has a competing product, the CK is the superior choice. This company is in high growth mode. Watch out for this one. New management will make this one a winner.

Great company with a great product

Another unique-in-its-field company, also developing a constantly growing list of procedures for which Acuray's equipment will be the radiological treatment of choice, especially because its equipment automatically compensates for movements that take place during treatment of the targeted cancer site.

ARAY is a very innovative company and it is in a class by itself!!!The very fact that it is being very smrt and applying its technology in different directions show how clever it is..

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This longshot has an interesting product in CyberKnife and with a global distributional and mutual back scratching hook up with Siemens AG deserves a hard look while in the pennies. I will add though,in a market like this you just might get it cheaper with Management looking to the lower end of guidance. Other than that Looks good post parade,and should at least bring those long odds in the trifecta to add value,good shot to get in the exacta,ha!ha!

200 systems installed is a big milestone and backlog is ramping faster than installations.

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I believe that with the growing number of medically-insured people, the new regulations, and the need to be more cost-effective this stock will skyrocket. People will actually be able to afford these procedures because of their health insurance and their insurers cant deny them coverage, thus widening the poolof applicable candidates for this surgery.

Founder of company recently resigned from Board of Accuray and as a consultant to Accuray.to join Accuray's main competitor Varian citing poor management and business strategy at Accuray. Founder was also Accuray's largest individual shareholder.

Accuray being held back by reimbursement issuesin US for use of its only product, Cyberknife, and arrogant insular inexperienced management, Accuray lacks an effective strategy for addressing the critical reimbursemnt issue. Upper management poorly regarded internally and talented middle managers are leaving.

Stock is selling at one third of IPO price. Company has world class, game changing product but third world management. Company is doomed if current management is not replaced.

I have watched this stock sink over the past two years. Top management are the only ones that make out qtr after qtr. They treat the company like their own piggy bank. This is why the lawyers are circling

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This met a high level screen to indicate a buy and strong outperform against its peers (other tickers in its industry). My 1st version of this spreadsheet devles deep into the company's balnace sheet and recent income statements, combined with other relevant price data for the company including insider/institutional holdings, short interest, debt levels, etc.
Testing capabilities of this 1st version of my automated, valuation spreadhseet matched with my personal criteria and see how it holds up.