Matria (MATR) is turning into a chronic pain for shareholders.The company, which manages the treatment of long-term illnesses, punished investors Thursday with its second weak forecast in two months. The company slashed its aggressive full-year targets, sending shares down 18%. Matria maintained its
Meanwhile, some of the very risks that Off Wall Street warned about -- including acquisition-related challenges -- have come home to roost.
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.
O'Neil simply happened to recommend it last. "If you are a half-empty short-term or 'expectations-driven' investor, we would suggest it is impossible to know whether MATR can pull (its current goals) off in the next few weeks and would suggest you avoid these shares until there is more visibility," he wrote. "On the other hand, if you are a half-full, long-term (investor), or focus more on the 'reality' of the company's accomplishments than on how the same stack up relative to 'expectations,' we'd suggest the risk/reward here is incredibly compelling." O'Neil has a $50 price target on the stock. After Thursday's plunge, however, the stock is sitting much closer to the $22 target that short-sellers established some three months ago.