A True Believer Walks Out On Cardica

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Medical device market Cardica (CRDC) hit a all-time high last Wednesday as a group of surgeons "successfully used its automated system during coronary artery bypass operations." It was not hundreds of surgeons in various locations. It was just two teams. One in Nashville and one in Richmond.

But, the shares jumped to $12.04, almost 3x their 52-week low. The company’s market cap got to almost $200 million. CRDC lost $12.1 million last year on $2 million in revenue.

This morning, A.G. Edwards & Sons Inc. downgraded the shares from "buy" to "sell" "saying the company’s positive update last week was overblown on Wall Street," according to The Associated Press.

The analyst, probably with good reason, thinks that doctors will want to see more than a couple of operations. The stock is down 13% today to $8.60.

Douglas A. McIntyre