Why Short Term Business Results Are Misleading for Somanetics Corp. (SMTS) Stock Value
This stock demonstrates the fallacy of exits based on short-term setbacks in results. Analysts have been unpleasantly surprised by a profit drop during the Most Recent Quarter. The management has toned down its business expectations for the full year. The stock market has responded with severity, as the stock price at the end of the second week of May 2008 was just $16.73 against a 52-week high of $29.53. Discerning investors will disagree with the market and will remain invested in this stock for strategic reasons. The company provides solutions for medical professionals who need to monitor critically ill patients…