I can't claim to have done thorough research, but I am a strong believer in the stock. The reasons are:
1. the Medicare reimbursement approval. There is a huge market for this non-exclusive, non-invasive procedure. I have had a sextuple bypass at $100,000 and if more treatment were necessary I would take this in a minute if offered. It looks safe and effective. I think it will become the standard treatment for many or even most stable angina patients.
2. the economics look reasonable from both hospital and small clinic POV.
3. it is a conservative noninvasive treatment.
4. Although the upcoming presentation is on heart failure is limited in number of patients in the trial, this is a huge new market of people who need treatment. When this is approved for Medicare reimbursement for heart failure they will perhaps double their potential market.
5. The board appears to be a committed group. They and other insiders have been buying shares for about a year.
6. This company has a long period of development. Its assets on the book are modest, only about $3 million, but the negative owners equity of about $35 million represents the accumulated costs of R&D. Money has been pumped in and spent every year. In the past few months sales have picked up rapidly. I see only one real insider seller. Everyone else seems to be piling on. Excellent. By the way, I would not be surprised at some modest insider selling during the last week. I know several speculators have taken profits -- a seven bagger in a week is worth some cashing out.
7. I would not be at all surprised at some additional financing via convertibles, and this would be bullish to me. IMO this company needs to spend to build its market, and start moving overseas, rather than sell off overseas rights.
China would be a good place to start for obvious reasons.
My personal target for this stock is $100 by the end of the year, although this understates its long-term value. This is purely on anticipation by the market of acceptance. Profitability is still a couple of years away IMO. |
