http://www.fool.com/investing/general/2010/11/15/thoratec-shares-plunged-what-you-need-to-know.aspx Thoratec Shares Plunged: What You Need to Know
By Travis Hoium | More Articles November 15, 2010 | Comments (0) THOR
Thoratec Corp Watch THOR CAPS Rating 2/5 Stars
$25.47 $0.73 (2.95%)
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Thoratec (Nasdaq: THOR) shares fell 20% today on news of increased competition.
So what: HeartWare International said its new five-ounce implantable pump, that will compete with Thoratec's HeartMate II, has seen positive results in a study. The new device has yet to be approved in the U.S., but is half the weight of the HeartMate II.
Now what: The weight difference alone is astounding for an implanted device. It doesn't sound good for Thoratec's $230 million device unless regulators hold up the new device some surgeons are raving about. I hate to sell on a down day but the increased competition doesn't look good for Thoratec in the long run.
HIN Price at posting:
$2.46 Sentiment: LT Buy Disclosure: Held
