Hedge Fund Metric Says These Two Stocks Deep In The Red Today Could Be Good Buys

Here is an excerpt from Sientra Inc (NASDAQ:SIEN)‘s press release concerning Silimed, which is a Brazilian contract manufacturer for Sientra:

On October 2nd, Sientra (SIEN) learned that Brazilian regulatory agencies announced that, as they continue to review the technical compliance related to Good Manufacturing Practices (GMP) of Silimed’s manufacturing facility, they have temporarily suspended the manufacturing of all medical devices made by Silimed, including products manufactured for Sientra. ANVISA has also suspended, as a precautionary measure, the use in Brazil of all implantable products manufactured by Silimed.

It isn’t completely bad news, however, as the Brazilian agency notes that there have been no reports of adverse events over Silimed implants and that there is no need to adopt corrective procedures on patients who already have them.  If Sientra could get the contract firm’s manufacturing back up again, its stock could bounce back, although the company needs to start improving its bottom line sooner rather than later. Sientra has some time, however, as it has $5 per share of cash on its balance sheet as of the most recent quarter.

Six funds owned $129.77 million worth of Sientra Inc (NASDAQ:SIEN) shares at the end of the second quarter, representing 34.50% of the company’s outstanding shares. Samuel Isaly‘s OrbiMed Advisors owns 3.19 million shares.

Disclosure: None