Accuray (ARAY)

Company

"Accuray Incorporated, based in Sunnyvale, Calif., is a global leader in the field of radiosurgery dedicated to providing an improved quality of life and a non-surgical treatment option for those diagnosed with cancer. Accuray develops and markets the CyberKnife Robotic Radiosurgery System, which extends the benefits of radiosurgery to include extracranial tumors, including those in the spine, lung, prostate, liver and pancreas. To date, the CyberKnife System has been used to treat more than 80,000 patients worldwide and currently more than 190 systems have been installed in leading hospitals in the Americas, Europe and Asia." (company website)

aray(1-1)
ARAY 4-month chart
aray(1-1)_1yr
ARAY 1-year chart

Sell short

12 March 2010. Sell short 500 at $7.25.

Accuray got a big boost from earnings at the beginning February. Since then volumes have fallen off, and it has pulled back for the second time to the 20-day moving average.

  • Percentage price oscillator (PPO) — just crossed below the signal line
  • Volume — dropping off

Based on technical analysis, MarketEdge calls ARAY a "hold" and notes "mildly deteriorating conditions," with the stock trading below the support level $7.46.

Buy to cover

gain Bottom line
-1%

17March 2010. Buy to cover 500 at $7.32.

It is beginning to look a new upcycle has started, so rather than wait, I decided to cover the short today.