The shares of DRAD have been ignored for a long time, and frankly there has been no reason to get very excited about the prospects of this company. All that is going to change in 2011 as each quarterly report gives hope of a sustained renewal. I hate to sound like a pumper here but those folks that want to get in near the ground floor ($2.88) should consider doing so before the Q1/2011 report and conference call come into view on May 6th. I see each successive quarter showing more and more positives as we work through 2011 and into 2012. I'm counting on DRAD to produce a nice multi-bagger given some patience into the long term (12 to 24 months). The problems of the past are now history. The catalysts are now in place for northbound share price direction. I rate this stock as a "strong buy".
Love the balance sheet but their business is in the toilet. Unless they pull a rabbit out of a hat, their Q1 will not look good at all. I don't see any urgency to get in until they show they aren't going to either burn up all their cash over time or not foolishly spend it on an acquisition to paste over their problem business. It may take years till reimbursement schedules are adjusted to prior levels. They are not only taking the hit on rates but it would appear that they are also losing absolute volume (without regard to the $$/per)
I also like the fact that the key players, at least so far, are not taking huge salaries and larding themselves with tons of free stock or dilutive options. Sort of a watch and wait for me. $2.88 reflects the risks and my hunch (just a hunch as I have NO information) is that Q1 will be a stinker.
the problems in the business are more than reflected in the depressed valuation. even the slightest hint of a turn around and a path to sustained profitability will cause this stock to at least double. it does seem like drad is under heavy accumulation at the moment.
with new product launches and new partnerships this year, the risk-reward on drad is outstanding.