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Citron Update Arthrocare (ARTC)

Posted in Citron Reports by CitronResearch on the December 26th, 2007

 stock ticker: ARTC
As suspected by Citron Research in its initial report, the problems at Arthrocare had to be more systemic than first described.  Ergo, a note from one of their main “cheerleaders” — Lazard Capital Markets, who slipped out piece of research Friday after the close. Lowering their price target for Arthrocare, Lazard cited 3 concerns:

  1. Reimbursement issues, (exactly as identified in the Citron report)
  2. Arthorcare losing market share in the Opus shoulder division mainly due to increased competition and pricing. 
  3. Arthrocare’s response – a claimed share buyback, according to Lazard “seemed aggressive” (“given the company’s current cash balance and free cashflow run-rate” – as pointed out by Citron — while still, in Lazard’s words is at best an “indirect” response to the reimbursement concerns at issue.

It remains Citron’s belief that Arthrocare has been losing market share and margins in its mainline divisions, which would be the motivation for their aggressive billing procedures in their spinal division. (more…)

Citron Research Reports on Arthrocare (ARTC)

Posted in Citron Reports by CitronResearch on the December 20th, 2007

Citron Research comments on RemoteMDX (OTCBB:RMDX)

Posted in Citron Reports by CitronResearch on the December 4th, 2007