RITA

[David Randolph]

RITA Medical Systems develops (RITA), manufactures and markets innovative products for cancer patients including radiofrequency ablation (RFA) systems for treating cancerous tumors as well as percutaneous vascular and spinal access systems. The Company's oncology product lines include implantable ports, some of which feature its proprietary Vortex(R) technology; tunneled central venous catheters; safety infusion sets and peripherally inserted central catheters used primarily in cancer treatment protocols. The proprietary RITA system uses radiofrequency energy to heat tissue to a high enough temperature to ablate it or cause cell death. In March 2000, RITA became the first RFA Company to receive specific FDA clearance for unresectable liver lesions in addition to its previous general FDA clearance for the ablation of soft tissue. In October 2002, RITA again became the first company to receive specific FDA clearance, this time, for the palliation of pain associated with metastatic lesions involving bone. The RITA Medical Systems website is at www.ritamedical.com.

Here's the all history chart, where we can see $2.5 is a strong support for the stock:



And the medium term chart where we have a bullish breakout:



The trend now is bullish on RITA and volume confirms the price action. Results will be released on August 9. I don't see any news attached to the move, which is a good thing, probably those positive news will come out in the near future  

There were some reports on CNBC about very strong insider buying on RITA's shares. I bet earnings will be a positive surprise.

I've decided to buy RITA at the open for the 3 Stocks on Fire Portfolio.

3 Stocks on Fire Community take on RITA

This analysis is part of Top 5 Stocks for Tuesday, conducted by David Randolph from 3 Stocks on Fire. He's looking for interesting charts and after DD he might consider this stock to be bought for the 3 Stocks on Fire Portfolio. David Randolph is managing a public and diversified portfolio which is up 144% since May 2005.

www.3stocksonfire.org is a traders and investors new Community growing everyday, with 2368 registered users in just about 2 months. We exchange great trading strategies and stock picks everyday on our boards. If you want to join our Community and receive a free newsletter, please register.

[nikao]

isn't that last candle a nasty 'hangman' ?

[AussieTrader]

Nah, just a nice white with a lower shadow that touched the 9ema

[David Randolph]

Nope, check the short term chart nikao:

[nikao]

Nope, check the short term chart nikao:

ah sorry.. it looked like a black candle on the other chart

(bad experience with that on ADST )

[atl_trader]

Looks like a great find.  Especially like the support level - looks like its been well tested.  Here's some additional technical flavor for RITA:

http://www.trade-ideas.com/StockInfo/RITA/RITA_MED_SYS_INC_DEL.html

Good volatility too

[Michael]

Great pick! Bought at 4.04.

This is probably the fastet fundamental analysis I have done yet (4 minuttes and 30 seconds )

Insider interest looks good:

http://yahoo.smartmoney.com/eqsnaps/index.cfm?story=insiders&symbol=RITA

[David Randolph]

RITA is so beautiful I'm not willing to let her go ... not before she ages until $6 plus 

[Igaryok]

Not a good day today.

[Igaryok]

Making a come back.

[David Randolph]

RITA may pullback or rest a bit now, but the medium term target and resistance level only comes at values above $6, so I'll continue to hold this stock for the foreseeable future.

Here are the short and long term annotated charts:

[la-onda]

RITA Medical Launches New Vortex EZ and Vortex EZ MAX Port System
Thursday July 28, 8:55 am ET 
New Products Include Key Functionality Required by Interventional Radiologists, Surgeons and Oncologists


FREMONT, Calif.--(BUSINESS WIRE)--July 28, 2005--RITA Medical Systems, Inc. (Nasdaq:RITA - News) today announced the introduction of the Vortex® EZ(TM) and Vortex EZ MAX(TM) infusion ports designed for maximum patient comfort and clinical ease-of-use. The new plastic ports are part of the Vortex EZ Port Infusion System which has been approved by the U.S. Food and Drug Administration (FDA) for use on any patient requiring repeated access of the vascular system or other selected body sites.
Vortex EZ and Vortex EZ MAX expand the RITA Medical Systems Vortex product family, and are part of the only port system in the industry to use the Company's patented rounded chamber design and off-set stem clinically proven to promote more efficient infusion and aspiration flow dynamics resulting in fewer patient complications. The Vortex EZ and Vortex EZ MAX are magnetic resonance imaging (MRI) compatible with a "suture anywhere" silicone construction base designed to make implantation easier, and incorporate a low profile shape designed to improve patient comfort.

Joseph DeVivo, President and CEO of RITA Medical, commented, "Our new Vortex EZ family of ports, which offer the same proven clinical benefits as our titanium ports, position us to further extend our market share by allowing us to offer premium products at competitive prices." Mr. DeVivo continued, "The EZ and EZ MAX were created to meet clinicians' needs for ports with low profile designs for improved patient comfort, suture anywhere bases to make implantation easier, and prices that are comparable to other competing products. The introductions of Vortex EZ and EZ MAX demonstrate our commitment to growing our market share by providing our sales force with products that can help them to expand our relationships with new and existing customers."

The new Vortex EZ and Vortex EZ MAX products have convenient depth markings on the entire catheter length to promote more accurate catheter placement. The EZ MAX port uses the FluoroMax high-radiopacity catheter and tip for better imaging during port placement. Both products are available with complete placement kits and safety infusion sets.

The Vortex EZ Port Access System is indicated for any patient requiring repeated access of the vascular system or other selected body site for the delivery of medications, nutritional supplementation, fluids, blood, blood products, and sampling of blood. The Company's ports are routinely used in the treatment of cancer patients who require multiple infusions of chemotherapy agents over weeks or months. Vortex EZ and EZ MAX are now available in the United States.

[Igaryok]

I was about to post the news heh, this should drive up the price.

[David Randolph]

Thanks for posting the news la-onda (Igaryok will receive an applause too  ), RITA is holding amazingly well near the highs, it's just a matter of time (short, I believe), for RITA to continue shooting higher.

[Michael]

As David rightly has pointed out the present run of RITA is due to expectations that revenue and earnings will exceed expectations. This has been fueled by insider activity.

With earnings around the corner it might be worthwhile to see what the expectations are:



As you can see the analysts expectations to Revenue are quite conservative whereas the earning expectations are a bit more aggressive. I am personally convinced that they will beat the revenue forecast. They have taken several mesures to cut cost. I do however only expect them to meet or slightly exceed the EPS forecast. Anything more than that would be great.

You should however expect a significant increase in earnings in Q3 (IMHO) and I am sure that we will also get some guidance in the CC.

RITA is a typical turn around story they have generated huge losses since their IPO but it finally seems that they are turning profitable. The future really seems bright. They have several patents for equipment which significantly extend the life of cancer patients.



Whereas most Biotech companies are software oriented (read drugs) RITA is hardware oriented (read equipment). You could actually say that they are a real biotech company