CDIC could be a long run winner, Dow Jones excerpts here:
As it becomes clearer that an invasive procedure for obtaining cardiac data can harm patients, doctors and institutional investors are looking to CardioDynamics International Inc.'s (CDIC) non-invasive digital monitoring devices as a promising alternative.
Sales of CardioDynamics' BioZ monitor have helped cut the company's quarterly losses to practically nil, giving investors an incentive to buy the stock. For over a month, the shares have traded above $5, and on Friday, the stock surged above $6 a share.
"There is almost this mythical $5 trigger," Gerard Klauer Mattison & Co. analyst Andreas Dirnagl said. "Since it's been trading at or around the $5, it may mean it's popping up on more institutional trading screens."
"We've been above $5 for some time now," Chief Executive Michael K. Perry said in an interview. "We have been getting more recognition from the institutional investment community."
Two years ago, only 8% of CardioDynamics' stock was held by institutional investors. Today they hold around 31%, Perry said.
"Because of the fact that we've had excellent financial results - our losses keep getting smaller - institutional investors are looking very closely as we're getting closer to profitability."
Dirnagl expects the company to post profits in its fiscal third or fourth quarter. The company's fiscal year ends in November.
But it's CardioDynamics' non-invasive heart monitoring technology that really has attracted investors, Perry said.
In July, the Journal of American Medical Association reported that Researchers at Brigham and Women's Hospital in Boston found the standard invasive right heart catheterization, or RHC, procedure, which involves cutting into the body and is used more than one million times a year, may increase the risk of a heart attack.
Using CardioDynamics' non-invasive BioZ monitor, doctors can gather cardiac data through a test performed much like an electrocardiogram, with no cutting involved.
Shares of CardioDynamics were recently up 46 cents, or 8%, to $6.22 on Nasdaq volume of 1.6 million shares, compared with average daily volume of 177,600.... |
