Rochester Medical may finally be catching some notice after closing at $12.50 today. Starting on April 1st, Medicare is implementing a new reimbursement policy covering the use of Intermittent Catheters. This has been expected for many months, but the news has finally allowed investors to react to "actionable" news.The main policy change now allows an intermittent catheter user a maximum of 200 catheters per month instead of four catheters per month under previous policy. Rochester Medical put out a press release about this change, understanding that this was news. They believe this is a very positive change in helping reduce urinary tract infections and improving the quality of life for Intermittent Catheter users, which they manufacture and market.
This is a long term secular trend that should lead to increased sales in the US. Investors will now be waiting in anticipation of growth generated from a beefed up sales force - stay tuned, management needs to execute on this one. Regardless, this will add some relevance to this quarter's conference call.
On another note, I added some more deep ITM calls with GRMN today. The stock is now trading at 10x 2008 earnings and was down today on some poor results by Tom Tom. I truly believe that GRMN is severely undervalued at this point.
I also hung onto my ATI puts today. The market really didn't give me an opportunity to cover at open. The thesis is intact, and I intend to hold for now while also carefully watching any breakout above $86.00 which will chase me to the sidelines.
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