RITA

[Michael]

Well it is dilution at a premium of 15% compared to the close on Friday. The market should like that. At the same time the interest cost is going down.

[nikao]

the 50MA is crossing the 200MA .. bullish signal!

[aix]

What is the consensus on earnings tomorrow?

Thanks

[David Randolph]

Earnings will be out today before the open. Expectations are for 0 in earnings, compared with a loss of 11 cents per share a year ago.

I will hold the stock if it closes above $3.21, which is the ascending support trendline.

I think Michael is right in his analysis on these news: RITA Medical Systems Raises Approximately $9.7 Million in Private Placement of Senior Convertible Notes

[nikao]

will you sell tomorrow if it closes below the trendline.. or will you sell today when it violates it intraday?

[David Randolph]

will you sell tomorrow if it closes below the trendline.. or will you sell today when it violates it intraday?

No, I don't consider intraday signals. But I'll sell if, 5 minutes before the close, the stock is clearly trading below $3.21.

[Michael]

Earnings are out:

http://biz.yahoo.com/prnews/050809/sftu065.html?.v=22

It is really a mix of good and bad news.

They miss the EPS with 3 cent but exceed the revenue target. Revenue increased 156% compared to same quarter last year.

Not sure how the market will react to the figures but they are clearly on the road for a profitable Q4 and maybe even Q3 so I will keep the stock.

[nikao]

Earnings are out:

http://biz.yahoo.com/prnews/050809/sftu065.html?.v=22

It is really a mix of good and bad news.

They miss the EPS with 3 cent but exceed the revenue target. Revenue increased 156% compared to same quarter last year.

Not sure how the market will react to the figures but they are clearly on the road for a profitable Q4 and maybe even Q3 so I will keep the stock.

hmm this looks good .. I think there has been some selling from people who don't want to hold the stock through earnings.. a lot of them might be buying back today because the earnings weren't bad.. 

[nikao]

There is upside to our revenue outlook for the full year, which is based on our ability to market the Habib 4X in the United States. We believe the Habib 4X can have an incremental revenue impact in 2005 of up to $1 million depending on the timing of FDA regulatory approval of the device. We believe we are making solid progress in all areas of our operations and are excited about our potential for the remainder of 2005 and long-term," Mr. DeVivo concluded.

anyone knows when the descision of the FDA is expected?  (RITA might rise big time in expectation of the approval)

[Michael]

Applauds to you Nikao,

You are right that RITA is a great pick long-term but I expected them to fall back a bit today because they missed the EPS estimate with 3 cents. Nice to see the market actually works 

[David Randolph]

Earnings were out on RITA and Michael already did some analysis for us, thanks Michael 

I have some doubts about the end of this downside move from RITA right away. The candlestick today, although the stock was up 4.4%, wasn't very encouraging. Perhaps we still need to go down to test those lows, or even touch the ascending trendline before we move decisively up.

Anyway, I'll continue to hold RITA.

[aix]

David, would it be accurate/prudent to apply the same SMA analysis to RITA as you did on END?

Keep up the good work!

MG

[David Randolph]

David, would it be accurate/prudent to apply the same SMA analysis to RITA as you did on END?

Keep up the good work!

MG

Yes, I could use moving averages as a safety net on RITA, just as I did on END, but one isn't more accurate/prudent than the other. On RITA I have an obvious ascending trendline so I'm using that. On END it wasn't possible to draw a trendline so I used moving averages.

One can be flexible on technical analysis and making trading plans (it's wise not to have always the same indicators), providing one has a trading plan and follows it.

Considering RITA, nothing is wrong with the stock, I just bought it when it was overbought (one never knows if there will be a correction or if the uptrend just continues - I'm glad when I can determine trend) and the stock is having a correction to ascending support. For now, just 38.2% or 50% retracement. If the stock, as I expect, starts moving higher again this was an healthy and bullish pullback.

The threshold on my plan is to keep holding RITA as long as it closes above the ascending trendline, which for today's session will stand at $3.27.

[David Randolph]

Did I said $3.27?

The threshold on my plan is to keep holding RITA as long as it closes above the ascending trendline, which for today's session will stand at $3.27.

RITA did all of its shareholders a favor and came down to exactly touch the ascending trendline (the low of the day was $3.27). After touching that level we've had a strong intraday reaction and I expect some continuation of this move for tomorrow (it's a pity the candlestick pattern and the volume weren't better).

Anyway, support was reached, a rebound occurred to a close above the 50% Fibonacci retracement level, so I'm all smiles on RITA, though this is currently my biggest open loss position of -12% at the close.

For tomorrow the ascending trendline will be at $3.28 but I don't think the stock will come down to that level, as said I believe the rebound from the support level will have continuation.

[nikao]

RITA has news out: RITA Medical Launches New LifeGuard(TM) Vision(TM) Safety Needle

RITA Medical Launches New LifeGuard(TM) Vision(TM) Safety Needle

RITA Medical Systems, Inc. (NASDAQ: RITA - News) today announced the introduction of the LifeGuard Vision safety needle designed to provide safe, secure needle management and low-profile design for improved patient comfort. The LifeGuard Vision safety needle is used by oncology practitioners in combination with RITA Vortex® infusion port products and third-party ports in the treatment of patients 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 new LifeGuard Vision safety needle has been approved by the U.S. Food and Drug Administration (FDA).

http://biz.yahoo.com/bw/050816/165311.html?.v=1

What I'm wondering is if the FDA already did approve this in the past, or is this actually the message of approval??