I agree. Obesity is huge market, $ 147 billion per year in health care costs. If VBLOC get 1/10 of 1% of USA market, which means almost nothing, it generates $ 1 billion per year in sales. Now what happens if they get 1% or 3% or more, can you understand these numbers. It is huge and those selling today were penny flippers, the buyers are institutions and they will be loading up for the next 4 months before FDA Panel, which is almost certain to approve.
So valuation of $ 600 million to $ 700 million means a stock price of $ 12, which is not unreasonable.
Those selling for mere $ 120 million market cap are nuts.
Avoid the paid bashers otherwise you will miss even a bigger rally in the works. FDA Panel of Doctors to meet in Q1 and we should be at $ 4 per share by then, upon approval easily at $ 7 to $ 8 and, on FDA stamp we will be double digits and then buyout could be as high #$%$ 40 if Medtronic bids.
I had predicted this move much earlier so I know what I am saying, we are going to $ 12 per share, read my posts and ignore paid bashers who are here to steal your shares.
Institutions are buying in large lots and will be doing so for the next few months, everyday, so penny traders are not able to keep up with selling. Watch as we soar to $ 12 per share.
Top, remember penny traders selling and institutions are loading up, matter of time before we explode back up as institutions have alot more money and results were superb.
Penny traders getting out while institutions loading up. I saw this on RMTI, stock did same thing before it soared to $ 15 per share from $ 3.75. Penny guys and traders have to leave first. Institutions will keep loading up as clinical results were great and no need to panic anymore. Sure they may need some money but any offering will be done at much higher prices. Also great buyout candidate. See at $ 12 per share.
Thanks, the fun has just begun.
Keep putting up the $ 12 post as people will understand and be able to calculate.
Lots but it was worth it. Imagine those poor people hearing that liar penny_dreaddful and having sold too early. What he did was pure criminal.
With such a limited float of just 36 million shares, rest is held by insiders and institutions, we should be at $ 12 per share within days, just like OXBT did with limited shares.
Today's news was bullish and clinical results were so strong that approval is becoming a certainty.
Load up as institutions are going to be all over this and they have just begun buying.
Best to hold, I have mines at $ 1.14, was early to see this. I expect quick rise to the $ 12 per share area. Hold on.
If you do 5X sales as buyout and first year sales are say $ 500 million, to be conservative, you are looking at a buyout price of $ 2.5 billion which is about $40 per share. This is definetly worth to buy and hold as buyout is a huge possibility per analyst, area is in demand.
Northland Capital Markets analyst Suraj Kalia was impressed with 18 month data for EnteroMedics (NASDAQ: ETRM) ReCharge trial and as a result more than doubled his price target from $3 to $7, suggesting nearly 300% upside from current trading levels of $1.80 (up 30%).
Kalia sees the strong data as leading to a positive FDA panel ruling. " Based on the current 18-month data, and barring any unforeseen kinks in any subgroup analysis (only top-line data has been released so far), we do not envision a mixed or negative ruling in an FDA panel," the analyst said.
The price target of $7 would give the company a $400 million market cap. The company could also find itself the target of a takeover, according to Kalila. "While we can articulate on DCF's as to how our PT was achieved, we believe that Enteromedics could now be a good takeout target post-approval and post-first few quarters of launch," the analyst said. "The diabetes and obesity space are usually high takeout multiple spaces, with premiums @ 5 - 10x forward sales."
For an analyst ratings summary and ratings history on EnteroMedics click here. For more ratings news on EnteroMedics click here.
Shares of EnteroMedics closed at $1.37 yesterday, with a 52 week range of $0.81-$3.23.
With great news that VBLOC device works at 18th months which is data FDA is looking at, with limited shares in ciriculation (small float), which institutions wanting to load up on ETRM before FDA and as quickly as possible, I expect us to jump dollars in the coming days as momentum heats up, much like it did with OXBT which went from $ 3 to $ 12 in a few days.
I expect same here, hold on, as stock is illiquid and surge in buyers will send this double digits.
Today's buyers were large institutions whom were waiting for 18th month data to load up since they wanted to see that device maintained weight loss over placebo not just at 12 months but at 18 months. As a matter of fact the results in the treatment arm have put to shame the results in the placebo arm. I expect more institutions to load up shortly as this goes to $ 12 per share.