ArthroCare (ARTC)

ArthroCare (ARTC - Analyst Report) develops, manufactures and markets products based on their patented Coblation technology. Coblation combines bipolar radiofrequency energy with a saline solution to gently and precisely remove soft tissue at low temperatures, typically 40 to 70 degrees Celsius.

We recommend avoiding this stock until the company has resolved its ongoing issues - financial restatements, FBI probe and class action suits. The company's patented Coblation technology and other innovative, clinically superior surgical devices for the surgical treatment of soft-tissue conditions should help pull them from the mire once they emerge on the other side of the aforementioned issues.

The company has been unable to complete its financial statements for the quarter ended March 31, 2009 and does not expect to file them until the restatement process, the Audit Committee's review of the scope and nature of the Company's internal controls, and management's review of the effectiveness of internal control over financial reporting have been completed.