Traders who sold puts in the Palomar Medical Technologies (NASDAQ:PMTI) position breathed a small sigh of relief today after the issue moved higher on solidfavorable earnings. The company posted record revenues and profitability for the fourth quarter and fiscal year 2004 as gross earnings from product sales improved by 73% and net income rose 417%. Chief Executive Officer Joseph P. Caruso said he was "pleased with Palomar's progress" and "especially encouraged" by the fact that revenues continue to increase at a rapid rate allowing PMTI to further expand sales, marketing, research and development efforts.
We are simply pleased that Palomar did not "surprise" investors with a mediocre report and our review of the company's fundamentals prior to recommending a bullish position suggested a positive outcome would occur. With any luck, the trend will continue for another week.