Tomahawk, WI 8/07/2013 (Basicsmedia) – Vocera Communications Inc, which is also known as VCRA in the NYSE circles, has made a name for itself in terms of provision of mobile telecommunications solutions for both the healthcare and non-healthcare clients.  The company, which is based in San Jose, California, has been around since 2000 when it was founded. The company has to provide its services and solutions using some 343 full time employees it has in its roster at the moment. Its stock has been on an upward trend of late. Why is that the case? This article examines the reasons why.

Why Is this Increase Attracting Attention?

One reason why VCRA tock has been on the increase thus attracting too much attention, has to do with the fact that there have been very few successes this year, not only in NYSE, but other stock exchanges as well. For a company whose revenue increased by around 1.7% compared to what it reported last year, the rise in stock price is quite impressive. Its adjusted per share profit was just marginal, settling in at around $0.01 and this is one factor which has caused consternation in the industry as more analysts examine the reasons which led to rise in price.

However, when you consider that the analysts had estimated that the company would report loss and not earnings, then you begin to get an understanding as to why there has been a surge in stock price. Wall Street had forecasted a loss in the region of $0.03 per share held. Investors are responding well to this news by trading with the stock, thus creating a huge demand for its shares. Any company which manages to post profits when losses had been expected, is worth in the eyes of investors hence will attract better stock price just like VCRA is doing at the moment.

Has VCRA Turned The Corner Yet?

This is the concern which needs to be addressed if investors are to be really satisfied that the company is doing well. It may have posted profits, but the bigger question is whether this is enough to make VCRA a perennially profitable entity as opposed to this being a one-off which may never be repeated in future. VCRA’s applications and technological solutions are not only cool for this era, but they are considered to be among the most practical in the market. The revenue and margins are still quite low and continue to be shrinking.


This image, obtained from, shows VCRA revenues and margins.

As I’ve stated earlier in this article, VCRA is still far off from being labeled a major success, in terms of posting continuous profits every single year. The company is expected to continue posting results which are not as impressive as might have been envisaged in many quarters. If anything, there is very little that investors can do other than hoping and expecting that the management will institute the right measures to make this company one of the most profitable in the market. Until then, one can only hope that the rising healthcare costs will work to its benefit.

The fact that the industry is forecasting more losses by VCRA, should be sufficient reason for those on the outside to keep off from buying VCRA stock. If you own stock here, hold on to them and see if there will be a change before disposing of them.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.