TSB has never believed in attending the AAOS. Years ago, spine broke off and created its own venues. As one reader so eloquently stated, "there are way too many meetings in this industry." Besides, why would we attend a meeting that really caters to the reconstructive, sports, and trauma markets? But that's not what this post is really about. Today, we wanted to discuss the irrational exuberance that still exists within our industry, especially when one looks, or can't avoid looking at the stock performance of some companies over the last few weeks. How does one company's stock decrease, and then increase an estimated 63% on news that there were no reimbursement issues to begin with? Yet, another company can report that they have had one of their best quarters ever and the stock continues to "slog" along? Obviously, much has to do with the analysts' spin on what is hot and what is not. In addition, one must speculate as to how much of their own capital do they have invested in specific stocks?
Do any of our readers, let alone the analysts' understand the long-term strategy of some of these companies, and, is there a defined road map to where they are going? Or, will some of these companies continue to ride an existing product in hope of finding the next new, new thing for their portfolio? It is apparent that many of the early growth stage companies take umbrage when TSB asks the question, who are these companies? Some of our readers believe that it is an assault by TSB or the legacy companies on their existence and survival. Is it an attack on their freedom to operate, or are they responding to their vulnerabilities in a free market? Yet, it is evident that any business where you can sell a product and make fast money is going to attract some nefarious characters. In many respects we are a mirror image of those that create mortgage bonds out of sub-prime loans hoping to sell their portfolio to the larger investment houses. The problem that all these companies face is that they have been exposed as having much of the same thing, looking to operate in small markets, avoiding too much exposure.
It will be interesting to witness how many of these companies attend the next set of meetings. Minimizing one's expenditures has been important for many of these early growth stage companies in order to survive in the current economic climate. When OTW advertises asking the question, are there too many spine meetings, or, are there too few good spine surgeon meetings, you know they industry is pulling all stops to keep people spending their money. And if OTW is offering subscriptions at 30% off the current rate, are they looking for new subscriber's or is this a sign of the times? TSB wants to know what its readers have heard about the current climate in the industry? You voice, is the only voice that matters.