Matria Mashed Again

Meanwhile, some of the very risks that Off Wall Street warned about -- including acquisition-related challenges -- have come home to roost.

Bad Call

Piper Jaffray analyst Sean Wieland finally cooled on Matria, cutting the stock to market perform on Thursday after the company's dismal forecast. Meanwhile, a bullish report from a competing analyst started to look especially ill-timed.

Avondale analyst Brooks O'Neil reiterated his outperform rating on Matria just hours before the company warned of a shortfall. O'Neil had been hoping for some good news from the company.

That said, O'Neil rattled off a series of reasons to avoid the stock right now. He portrayed Matria as a volatile stock, vulnerable to near-term hits, and portrayed it as a long-term investment only.

He even hinted at a second-quarter miss, while forecasting better times ahead.

"If you are an investor who cares (about guidance) and you still own MATR shares, you are probably someone who enjoys going to the casino with a pair of dice and playing craps," O'Neil wrote on Wednesday. "It is a game with which we are unfamiliar and would never think of playing. [So] you are on your own."

He went on to offer some cautious words about the company's leadership as well.

"Petit is who he is, and we love him for it," O'Neil stated. "Those who don't love him should simply move on. Expecting him to become a kinder, gentler Pete is virtually out of the question. So is expecting him to consistently hit the forecasts he makes."

If anything, O'Neil's report seemed to do more harm than good. Matria's stock slipped nearly 4% on Wednesday, even before the company issued its warning later on that night. Before that update, virtually every mainstream analyst on Wall Street had been recommending the stock.