It is now clear that ETRM wanted to keep the BIG SPLASH for huge POCKETS. Telling those investors that ETRM is entering a $ 210 billion market where they carry a valuation of only $ 88 million as of today will send floods of buyers to this stock.
Those magical words which investors needed to hear "building commercial infrastructure".
This is the next stage where significant value will be added to the stock as we move from science lab work to selling the device. It is earnings which will rock this stock much higher. Entering a $ 210 billion market which a device in which we have NO COMPETITORS and patents. Company needs to lay down a VISION of this commercial infrastructure which is being developed. This will clear the clouds and once investors see better you can expect institutions upon institutions to load up including many upgrades. ETRM should be trading at 4 to 5 times what it is now just on this news alone of commercialization.
ETRM kept the PR splash for the Canaccord audience. It is becoming clearer now. Stock took a beating because of the silence and only encouraged short sellers as longs lost faith that company had no vision and no plans to market the device. They took the silence as confirmation of this.
In the background ETRM was strategizing as to how best to get the word out and it was decided with a Canaccord audience where there are analysts and people have big pockets was the best place to promote their vision. In the audience will be competitors and also people from firms whom may be looking at ETRM.
It does appear that Knudson is about to turn the PR machine on. Reaffirmation of $ 5 price target by Roth Capital when stock is close to $ 1 is pretty gutsy and confident call of the future.
If I were shorts I would cover in a hurry as this will spike up pretty hard as long investors whom sold will return after realizing they made a mistake to sell and, will drive this up aggressively since stock is illiquid and now in strong hands.
Dr. Knudson will provide an overview of EnteroMedics and its development and commercialization program for VBLOC® vagal blocking therapy.
August 14th Canaccord conference. Finally going to get details on commercialization side of the business as approval seems to be a done deal. This will give investors a VISION of the future and a reason to buy a high growth stock. Who knows perhaps this sell off was to permit those attending the conference to come and load up cheaply so Canaccord looks brillant.
Do not over think this. It is easy to get discouraged and say that you did something wrong. There is absolutely nothing wrong with your investment or with the company or with the approval process or with VBLOC for obesity and other devices.
ETRM is a very illiquid stock and therefore there will be huge fluctuations in price one way or the other. The markets have been correcting of late so buyers kind of stay away. It is also the seasonable slow period for obesity market. And institutions may have seen some investor redemption which forced them to sell some shares.
There can be other motives too. I have often seen huge volume on ETRM and price has barely moved. This would indicate wash trades in which there is same buyer and seller. Most people who are not sophisticated will look at volume and get discouraged to sell. It is called shaking the tree. Then longs sell and those whom did wash trades accumulate. This has been going on for 6 weeks since June 17th date.
What I see is ACCUMULATION and not selling from an interested acquirer. It may be Medtronic or someone else. Imagine if they didn't do this, to buy 1 million shares they would have driven the price up to $ 5, another 1 million shares another $ 2 up, and so forth. With wash trades they accumulate large quantities cheaply and then announce huge buyout to rest of shareholders who have endured the abuse.
Most of the trading I say is wash trading which scares longs into selling. On the other end, the ones whom are doing the wash trading to get longs to sell are ACCUMULATING hence why I say there will be a BUYOUT.
Again kudos to you on this one at this TIME. Nothing else you can say will affect or scare people who have been in a typical holocaust here. There is only bones left on people, not even an ounce of fat.
You were right about sell off and so are 8.5 million shorts and put buyers. So you are not that unique. The thing is that you are RIGHT at this moment in time 100%, lets see where we are in 6 months, 1 year, 3 years, 5 years, 10 years and 25 years. I bet we will be much higher than today.
Good, so then I can LOAD UP on Friday at 52 week low, buy low and sell high, right!!!!
I am going out on a limb and will say that there has been a quiet acquirer who has been accumulating stock in order to announce a buyout of ETRM. They are sitting on a device, which is new and targets $ 210 billion market. Notice that market is down 175 points and stock is almost up. It is a buy signal and that there is solid support for this at this level.
Deal may be $ 400 to $ 500 million offer, which is small change to be big firm. I don`t think it is Medtronic but we will soon find out.
It was posted earlier this evening on this message board. Innsbrook even asked a question and so did I . The poster said it was on twitter, a tweet stating that an interested acquirer of ETRM was accumulating a position and news update would follow soon.
Innsbrook speculated it was a hedge fund while I asked for details on the tweet.
After 30 minutes, yahoo removed the post. Why would they do this?
EnteroMedics Inc (NASDAQ:ETRM) Pursues $210 Billion Market With Obesity Implant
This was from a press release on piece of cake press release.
And you don't think someone is accumulating.
It is only $ 400 million offer, which is peanuts. It is like getting best basketball player in the world for $ 100,000.
I think this is probably the update that had to be done following Fed Panel approval of June 17th and, was not done. Management probably decided it was best to do it with earnings call when everyone would be tuned in and they get more time to prepare to answer questions as there will be many so close to FDA approval.
I believe it will be positive and am hoping that they lay out their vision of the future so we don't always have to guess which way they are going. A good business strategy will go a long way to restoring confidence in management once more.