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
So what: Thoratec's stock price has been on a falling trajectory since October, plunging several times as investors have questioned its product pipeline and mulled competitive concerns regarding its implantable heart pumps. Thoratec's major rival is HeartWare International
Now what: Despite the beatdowns administered to Thoratec's stock price over recent months, investing in the company seems risky, especially since its latest quarter shores up the reasoning behind a pessimistic outlook. Thoratec is trading at 15 times forward earnings, but given HeartWare's pending challenge, it may be difficult to achieve forward targets. Investors should count to 10 before pumping cash into Thoratec.
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