Oozhee22 the paid basher for institutions whom load up while he talks trash is back. It means we are going to have a RALLY soon. He first showed up in October 2013 as penny_dreaddful to bash and we rallied to new highs of $ 2.60. He showed up again in April 2014 and this type bashing of non approval and we got approval in June 2014.
He now shows up again at end of August 2014, so I expect approval and rally.
Oozhee22 is Ernest Marmer and, he is a retired having worked for medical field. He writes trash for seeking alpha along with the other whom has same reputation. They both are paid with envelops to simply write articles while they are paid by institutions load up and shorts cover.
The fact that he is back is actually very bullish news.
When there is a news vaccum where we are in a holding period it is difficult to watch as stock gets trashed from one side to another, much as if you are making casino bets. There is no logic in buying or selling, simple emotions of trading within a core to generate some profits.
Fundamentally to make a bundle on any stock is to find one which is cheap in valuation compared to its market potential and earnings going forward. When you remove the noise of up and down, this is what I see:
- ETRM carries a valuation of about $ 90 million at this moment.
Question is: What is valuation of ETRM going into the future.
If approved and I say this is a rubber stamp procedure on ETRM, the valuation for a device company the first of its kind in a huge obesity market where there is a need, is going to be 10 times to 20 times it present market cap especially when one considers the type of earnings it will generate.
There are 200 million eligible patients and, even getting just 50,000 patients a year at $ 10,000 per device with 80% margins gives $ 500 million in revenue of which $ 400 million is profit. Removing some cost for administration and say you arrive at $ 300 million which gives earnings of about $ 2 to 3 per share and a $ 60 stock price.
So you can go ahead and sell based on the noise or you can do your homework like I did and LOAD UP while fools sell.
I mention it because I am tired of hearing negativity on ETRM when in reality it is people whom should work on their PATIENCE. If you were to put a 5 year time frame you wouldn't b so frustrated with stock price.
Where is stock price in 5 years?
How about 10 years?
How about 15 years?
Make it 30 years, if I give stock to my kids?
When you complain about daily trades micro analyzing every single tick with news or not, it gets depressing to hear you. If you have news to share, mind you, go ahead, if not then keep negativity to a minimum.
ETRM filed PMA in September 2013, we are now going to September 2014, which is only 1 year and we have FDA Panel approval and close to FDA approval.
Say approval is October 2014, then 1 year from this we should have material revenues and a much higher stock price.
So I say, what is the problem?
Why don`t you just sell your position? In this way I don`t have to constantly read your lamenting as to why? why? why?. At one point you sound like my ex-wife, constantly nagging and complaining.
Enjoy the ride or get out.
Bid Monday September 1, 2014, $ 6.25 per share, $ 4 per share in cash + $ 2.25 in stock for a $ 785 million deal?
Just my honest opinion of course,
A report came out today that after 16 weeks of outflow of funds from mutual funds from investors, last week saw investors flocking back into stocks with $ 5.2 billion. This is a very good sign. We can safely conclude that we should see 16 weeks of strong inflow of funds, some of it will find a home into ETRM for sure. Our timing is perfect with FDA catalyst and rush of investors.
Can you say "NEW HIGHS SOON". There is absolutely no selling at all. With the slightest rush of buyers we will be quickly back at $ 2.
Notice that ETRM is on up ramp and ARNA, VVUS and OREX are on downtrend. What does that tell you? People are coming into ETRM as obesity choice to help them.
Better load up....
FDA approval is around the corner for ETRM device for obesity, the first of its kind in 10 years. Nice up ramp is forming on ETRM on good volume. It will break out to new highs Make the switch to profit from this rally and then you can come back to VVUS and buy more shares while it trades sideways to lower here.
It is obvious that it will take time for ARNA to grow, hence instead of waiting around with dead money, why not make the switch to ETRM which has a pending FDA catalyst of approval and where stock is forming a now steady up ramp, with good volume, hence breakout is coming. You can profit there and then come back to ARNA when it is done to get more shares or buy lower if this keeps. ETRM will alone in the obesity market with its device, the first of its kind in 10 years.
I believe they are pretty close as in last conference call management said they were discussing labels, which is usually a sign that approval is in otherwise why discuss labeling. Plus ETRM has a firm idea on pricing $ 15,000 to $ 30,000 per procedure, profit margins of 70%to 80% and, distribution network of 12 Health places + Mayo clinic. They are always speaking to folks, which translated in laymen terms means, we are negotiating with interested parties whom see buyout.
Just hold on, this will EXPLODE.
I did not even divulge the bigger ones I know, one is sitting on $ 125 to $ 150 million, two others were at one time both sitting on $ 125 million and $ 375 million. I don`t know what they are at now.
I will start with the little ones I mentioned before by dropping hints and recommendations. You can`t go direct with people of extreme wealth as they may get defensive. You have to trigger greed feeling first. Once that is tone then I will start with the truly big guns whom can buy 5 ETRM companies.