Today's decline is a reduction in market cap of $20MM to back being below $300MM. That is nominal compared to its future market cap.
I f I recall correctly, last dec-Nov. it was estimated that 5 to 6 million shares we held privately/institutions so you could estimate that about 19 million shares are in float. But who knows what that number might be today. Regardless, as cpafirmsearch pointed out, a short squeeze would cause a spike.
For the past fourteen years health care cost have on continued to escalate, usually in the 15% to 20% range. Given that the U.S. burden for sepsis is probably now exceeds a $100 billion. But with the way hospitals inflate their prices to allow for discounts to the payors who knows what is the actual cost, regardless it has to be high.
People keep forgetting that there are only 25MM shares outstanding. A pps of $100 will yeild a market cap of $2.5 billion. Consider Dr, Chan's statement that the market of the filter for use in CBS is $500 million to $1 billion. For this application alone a conservative multiple of 4 times sales could put the market cap in that range.
Additionally, if the company trades at a PE of only 15 (not likely for a growth company) the earnings needed to support a $100 pps would be valuation $6.67. With 25 million shares this would equal $173 million. With a gross margin of 80%, $173MM in earnings could be realized off of even $500MM in sales.
Maybe the February ppt presentation has something to do with it. Dr. Chan use to estimate the market for the filter was $10 to $15 billion. Now the market is estimated at $20+ billion. Initially CTSO had a presence in just a few countries. Now there are 29 countries. The gross margin on the filter is 65% and Dr. Chan has always said it should be closer to 80%. Add to that the high percentage Q over Q sales increase.
Yes, there is no discrete PR associated with the move to $9. But $8 seems to be a floor that is a baseline for the pps, e.g. "basing" a context one might read in the IBD. I think that people saw that $8 was a floor and the stock was not getting any cheaper and given the low number of shares and market cap for a company with such an upside potential, it is evident the upside reward overshadows the downside risk. So the demand for the security is greater than the supply, reference the volume, so the price has to go up in order to convince folks to sell some of their position.
at has a market cap of $200MM. The log-logistic curve best represents the product life cycle. The initial phase is essentially flat but gradually increases before it accelerates with is exponential growth. Todays CTSO sales are essentially still equivalent to zero, a flat line.
With distributors world wide, multiple indications for the cytosorb filter being evaluated, new products being developed, the FDA trial application pending approval, expanding production, increased working capital, KOL collaboration, industry recognition associated with Fresenius and ect. it is just a matter of time before CTSO market cap will increase as much.
Sure things are moving slower than we would like but it will happen.
Perhaps Fridays news will be bad - for those who short the security. The weekend will give them time to ponder their next decision.
$805MM? Granted PWE has debt, but with decreasing production world wide, oil prices should expect to increase towards an equilibrium. So how does one value PWE when there are these wide swings in the price of Oil?
The hospital would have to have assurance of efficacy that the filter works. The physician board would need to approve it and a protocol before the filter would be adopted in the hospital.
Under your reasoning "... The device has been certified to be safe, so of course they can give it a shot. If it works, great. If it doesn't, oh well" that could also be applied to ground up rhino horn. But that isn't used either, and for good reason, it doesn't work.