Remember equity offerings. We have a slew of them this week -- Teekay (TK), Autoliv (ALV), Accuray (ARAY), Buckeye Partners (BPL). These are real deals, good secondaries that might work.

cancer hurts, this helps

Robotic surgery from Stanford researchers; already up and operating (pardon the pun) in over 100 world class medical centers. This one is a sleeper that will soar once is becomes more widely known on the street.

11:30

Saved my life

Bargain at $10 levels

GROWTH

Is this your last chance to buy ARAY on the cheap?

One thing that I have learned about the market, big market moves generally do not occur when too many observers are predicting them. This seems to work both ways. When nearly everybody is on board the consensus, look out. You can get blindsided. Right now, the overwhelming market sentiment is gloom and doom and that probably indicates that all those doomsday scenarios are already priced into the market.

The drive-by media want to lay it all off on the subprime fiasco. But once you get outside the housing and finance sectors, subprime is overplayed. The real reason why the market is in decline is anticipation of those typical Democratic policies, i.e., take as much as possible from successful people even if that hurts the economy so that you can play Robin Hood to all those voters that you can convince to have some reason to think of themselves as a victim. But comrade Hillary is not yet party chairman and, if voters get a chance to know her, she very well may not make it.

This is one of the issues address by Doug Kass in his recent piece entitled, “This Bear Sees A Year-End Rally”.

http://www.thestreet.com/_yahoo/s/kass-this-bear-sees-a-year-end-rally/newsanalysis/newsonthego/10389050.html?

Accuray took quite a pounding back in August when Amit Hazan misreported a 2007Q4 profit of $0.01 EPS as a $0.49 EPS loss and further went on to incorrectly pooh-pooh their CyberKnife technology. Post 2008 ASTRO, we seem to have enough investors getting up to speed on the technology that even another downgrade by Hazan coupled with yet another erroneous earnings report (Accuray misses by $0.02 was reported by Briefing.com even though the company in fact hit its consensus estimate of $0.04 per share) hasn’t been able to keep the stock under $17 even during a week when the Dow dropped 4.1 percent and the NASDAQ 6.5 percent.

Management forecast “a flat quarter” for 2008Q1 but still delivered on consensus EPS with record revenue. Their fiscal 2008 revenue guidance remains at $250 to $270 million. So if we start to get indications that the upturn in revenues management is projecting is, in fact, panning out, we are likely to see some appreciation in the share price, perhaps significantly so.

We also might get some more positive news on the Medicare front. We have been trying to confirm a report that approval by Medicare for a reimbursement increase for CyberKnife has occurred or is imminent. If and when the announcement of this increase becomes official, look for investors to view this as a sign that government is starting to recognize the obvious cost advantages of CyberKnife SRS versus open surgery supported by chemotherapy and traditional radiotherapy.

We might also get some positive news on the insurance reimbursement front. Aetna is already on record. Who’s next? How about a steady stream of announcements as the whole insurance field comes on board? I like the sound of that.

Then we might also get some positive news from government-financed systems. We already have one unit sold to the VA and one to a private group in the U.K. If the VA comes on for more units and/or the bureaucrats running the U.K. and/or other public health systems catch on to the cost saving advantages of CyberKnife, we could see a major announcement or two from these sectors.

We might also get some positive news in terms of clinical results. Dr. Jack Roth, a leading thoracic surgeon at M.D. Anderson, has already come on board to lead a study comparing the outcomes of CyberKnife SRS versus open surgery for early-stage lung cancer. Dr. Roth has already stated that he expects CyberKnife to hold its own,

"The results achieved with radiosurgery appear to be comparable to those achieved with traditional surgery for early stage lung cancer patients… The results of this study may change the way lung cancer patients are treated."

It will probably be at least a year before the results from the Roth/Anderson study start to trickle in but over the next few quarters, we could see publication of other ongoing research with respect to CyberKnife. The clinicians involved with CyberKnife are clearly enthusiastic about its results. This is going to become more apparent as we go forward.

Word-of-mouth is huge for CyberKnife. Patients are seeking out this treatment option. Existing CyberKnife centers are experiencing high demand for these services. They are also advertising their successes with the effect being that an even greater wave of interest is building.

The bottom line is the future of therapeutic radiation is SRS and Accuray has far and away the best SRS technology protected by dozens of U.S. and international patents and software copyrights. It’s not a matter of if Accuray will dominate this market. It’s only a matter of how soon. Wanting to time your move and find another bottom for ARAY is only natural. At this point in time, however, you may have more to risk by waiting than by jumping in. Long term, we know we’re going to win and win big. Right now, short term is looking pretty good as well.

2nd too ISRG, when ppl start selling ISRG they will jump onto this solid stock.

CYBERKNIFE

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