Wall Street’s Stormy Summer Medtech stock values bounced around like a ping pong ball in Au

Wall Street’s Stormy Summer

Medtech stock values bounced around like a ping pong ball in August after Europe’s debt debacle intensified and Standard & Poor’s downgraded America’s AAA credit rating for the first time in history. Double-dip recession fears also contributed to the meltdown, which left investors and device bigwigs alike exacerbated, frustrated, even a little nauseated. Orthopedic manufacturers generally fared worse than their medtech counterparts in the maelstrom, though no company escaped unscathed. Gainesville, Fla.-based Exactech Inc. and Alphatec Holdings Inc. suffered the most significant losses—Exactech’s stock price plummeted 18 percent in one day and lost 9 percent of its value that first week after the downgrade, while Alphatec’s stock value dropped 15 percent in one day and 17 percent over two weeks. Boston Scientific Inc.’s stock lost more than 7 percent of its value twice during the week of Aug. 8, but it recovered remarkably well to end that week just 1.3 percent below its Aug. 5 closing price. Varian Medical Systems Inc. shares also suffered a considerable loss, despite reporting stellar third-quarter earnings just two weeks before the volatility began.

Most investors and chief executives were relieved when the stock market ended its rebellious antics at the end of the summer and started acting normally again. But analysts believe such volatility is part of the landscape now, particularly as herd trading by hedge funds increases and traders react more emotionally to economic news.

Get ready for a bumpy ride ahead.