I spoke to the company and they are not happy. They screwed up by not financing six months ago. You may not see it, but the market for small caps raising money is tough, especially when you have none. They did say existing shareholders did buy the bulk of the deal, and why not. Talk about averaging down. I told them to get out in front of this and have a conference call and get the sales guy and the woman who is working reimbursement to be the main speakers. Knudson is useless as far as I am concerned and I would fire him. If Kevin Douglass gets active I would urge him to act on the Board and executives. We have dead weight. Deals on our technology would not work with a weak balance sheet. The whole plan now is VBLOC. I told them I want to hear about centers, surgeons and 48 month data if we have it. I told them their IR/PR is worthless and they have to do more to keep the shareholders on page one.
I still think the science is first rate as I can read a patent and obesity the number one killer in the world...next to ISIS of course. VBLOC will make it but it will take longer. A whole lot of what matters is the reimbursement phase. We get that it changes the game, but they have to work harder. The financing mess has been going on for three months. I told them be honest with your shareholders.
The stock trades here because management is incompetent. They don't talk to shareholders, they have bad legal and investment advice, and now all their net worth is gone. Put them on unemployment. Some smart company is going to waltz in here a low ball bid and buy ETRM. Only reason I am not selling.
But the biggest threat I see now is a player like Kevin Douglass getting someone to bid for the company.
ARNA, OREX have a currency ( stock price ) and a ton of cash on their balance sheets. They could expand their obesity franchise for a song. Someone bids $1.50-2.00 for ETRM and I think it trades. Remember they also have a world class technology that we get no value for. The management of ETRM and their Board of Directors does not own enough stock to do anything about it. And there is no poison pill to the best of my knowledge. There are a lot of smart biotech players out there and they do not miss a trick. And I bet a lot of them are over weight!
Get rid of management. They are inept. I have been urging a financing for 6 months and those dopes did not listen.
They have a great product but the CEO and the CFO have done nothing to help the sales guys by getting them capital. The hit all the employees took due to the ineptitude of the CEO and CFO is amazing. Great product. Dopes in charge. I gave them the benefit of the doubt. Expensive error.
This is all about management. Lea is a joke and the CEO is not a businessman. How would you like to be Kevin Douglass with all his stock and over priced warrants. If he does not get involved I will be greatly disappointed.
Lets look at this from the inside out. Management is useless as they have proven time and time again. Good clinical guys and useless businessmen. We all agree. I think they agree. But we are a company much like Apple. Apple manufactures nothing. All their components are made by QCOM et al. They invented all their products much like we did. We make nothing. We have it assembled. The key operating point here is an acquiring company has the expertise to manufacture so the cost structure is a lot lower. Marketing by a large company is easier and getting a pile of doctors as trainers like Scott Sikora is a lot easier. A well run operation could expand VBLOC sales exponentially and we would not have to wait for our slow assault on sales. I think all along the BOD and management had the sale of this company in mind once they got market acceptance, but we are too small and do not have the capital to really jump start the product. It is why I believe they have never sought a foreign partner as worldwide distribution is better than just Europe or Australia.
Today's PR has been in the works for months. This is not a knee jerk reaction to the share price and their financial ineptitude. If they can convince one insurer to cover the device that would put the company in play. Lacking that the power of a Medtronics or Thermo Fisher in working the reimbursement angle could be a lot better as they could lower the price. A manufacturing operation at Medtronics could make the VBLOC device a lot cheaper than we pay our one manufacturer. The patents protect us but the ingredients are not ours.
Knudson and Lea and the Board were looking for a huge pay day after the FDA meeting and the approval.
That I believe is now not in the cards. While my math says sales of 1800 units gets us to break even, I think
an acquiring company with marketing muscle could do that in a month.
Hey Murf, any reason why you hang around and continue to pound a 25 cent stock? Don't you have something better to do with your life???
This management and Board has killed Douglass and the other institutional investors. Most of us also. The latest deal gave those guys 50 cent stock and 60 cent warrants. All the other options and warrants are so highly priced that the management and the institutions who own them are out. The new sale will get them even so this company could be sold fast. The company said it was NASDAQ that killed the deal that raised the $52 Million but I do not buy that. I am figuring that there is 130 million shares in float and after the recent deal. They only have 4 quarters of cash and will need more in early 2015. If Douglass can engineer a $200 million bid I think it is a done deal. I think OREX or ARNA could buy ETRM now and expand their obesity franchise. This is the only way Douglass T. Rowe et al will get their investment out. Really sad but the guys that run the company
made some terrible decisions by not capitalizing us six months ago. The need runway until mid-2107 and the large holders are not going to sit around for further dilution. At least I would not,
Lerm..you make sense, but let me add...some bunch of scum bags got involved here and pulverized the stock. ETRM has been in business 5 months and the amount of disinformation and trash that we see every day has a reason. Some group is accumulating the stock as they know what this science can do. The founders are naive and unprepared and somewhat greedy. They thought the FDA approval was a home run and they only sold $6 Million of the ATM. If they sold it all we would not be begging for money. I just hope some group does not have enough stock to tender for it. I am so tired of reading the garbage from these schitte heads on this board who debase the company with zero facts. The only thing I know is the management should be tossed and I hope the adults are looking for replacements. ETRM will be fine. Just give it time.
I you listen to the conference and consider Knudson buying he said two things publically I consider when I see him buy...He said demand was good...from surgeons...he also emphasized the great amount of work that is being put into the insurance push...Then he bought..He is there and he sees it first hand...Why waste $75,000? He said the stock was cheap and put money into it...
I had a knee replacement in 2011..It was a new device from Conformis. My company self insured. I spent 2 1/2 days in a major medical center in Raleigh. The doctor billed $4,600 and the company paid $1600. The medical center billed $110,000 and were reimbursed $22,000. This garbage about $40-50,000 VBLOC procedures is inflamatory. The same knee I had replaced was scoped in 2006. Doctor bill was $5600 and he got $900. The surgical center billed $12,400 and got %3600, including anesthesia. The new group ETRM has working for them now is helping patients find low fees that have been negotiated. This is why we are not in New York City and the big training hospitals as they charge too much. We are starting in the right size cities.
Following my surgery a good pal who had his own business and no insurance took my bills and spoke to my doctor and hospital and got the procedure done for the same price. Where anyone comes away saying VBLOC is not affordable like this moron Ooze is listening to fabricated facts. VBLOC will be done now for less than $20,000.
This Ooze character spends his life ashing penny stock for what? No matter what anyone says he posts incorrect facts and we would all do well to complain to Yahoo about the fellow. He will not go away but you do better ignoring him.
You do not understand this company nor the problem with obesity. This company is run by a bunch of clinicians and PhD.s who for the sake of argument could not hit water if they fell out of a boat. My posts on obesity..which you do not have to read have nothing to do with the company. Info only and facts that keep getting in the forefront of treatment. Most obese people can not afford VBLOC. The scale up in sales is slow and far below what I expected. The dopes who run the company are not even trying to conference shareholders as they have no idea what IR/PR consists of. The costs of obesity are greater than I imagined and eventually this will lead some smart insurance company to start to cover our device. But my stock is now in the bottom drawer as we have to get more active in replacing the Board and management.
This company has been and will always be to me about the technology. VBLOC is the proof of that fact.
Personally I think they charge too much for it and if they do start to sell the numbers to reach cash flow positive seem low. 1700 device sales is $25 million. But I think we all want to hear from the guys who run the company and explain the horrendous deal they just did.
Bio...Its very true...Exercise stabilizes your weight. In 2001 I went from 265 to 185..I did it in 9 months..All I did was cut my portions of food intake in half...It was very difficult. I had no blood pressure problems. But what it did, and what VBLOC does it lowered my need for food and my stomach shrank. I lowered the production of ghrelin, a stomach enzyme that makes you hungry. It is 14 years later and I am 194...This is what started me looking at the neuromodulation devices and ETRM.
I just looked at the NASDAQ holders list and the three new large owners bought the stock BEFORE the new deal was announced and closed in July, and T. Rowe sold almost 3 million shares before the new deal. Kind of makes you wonder if all four of those folks bought the new deal.
Also if you look at the SEC insider filings you will see that all the execs and the board got devastated by the new deal. I was told the average price of all warrants and options before the latest financing is about $2.20 a share At a price of $2.00 a shares I figured there are 140 million shares of stock fully diluted. That is $280 million. Is VBLOC and our technology worth that? Over the next year or so if they can sell VBLOC at an annual rate of 4500 units that makes the price of $280 million seem quite reasonable. 51 centers do 8 a month that is the nut. The number of bariatric surgeries done annually is about 180,000. Does anyone think we cannot get 2 1.2 % of that business?
Refer back to Knudson's slide presentation which I think offers a lot of great information. Right now this company is all about sales and math. The CEO sees demand and he said as much and they are working heavily of reimbursement and communication. With the surgeons seeing the fall-off in bariatric procedures my guess is they will start directing patients to VBLOC.
Obesity causes 1 in 5 cancer cases. You guys ever think the food and medical professions do not want to see obesity stopped. My orthopaedic guys lives on young obese people. He said he would be out of business without the obese patient.
Lest we forget this is first a technology company not an obesity company. The vagal nerve blocking science is where a lot of this capital is going I believe. The VBLOC is an effect not a cause of this company and like monoclonal antibodies, RNAi, immunology et al this is where it starts. The existing holders bought the entire deal at the end of Q2 and this will be a wonderful stock going forward. Presently the entire market cap of ETRM is cash. This was a huge raise and remember management has its net worth tied up in the stock. You think they want it low? But we will now demand a call of some kind to find out where we are going and what we have done.
There is no other company I follow that has what we have in our technology.
This stock will move when management has a call and tells its shareholders what is going on.
We need a reason for the absurd financing, We should get updated on centers and surgeons and we need some forward guidance regarding cash flow and what they need in sales to break even. Poor management is a terrible anchor to stock price. The weight loss data is excellent and when we see 48 month data it will be better for the people still on the device.
If yahoo blocks it Google Obesity...Estimate obesity costing the U.SS. $315 and most of the expense is the 35-45 BMI crowd,,,Like Medicare expenses..5% of the sickest devour 50% of the payments.
Since I have given up on the morons that run ETRM....The next question for me is what is the company worth.
There are about 10 companies I can think of that would find ERM attractive. We know it cost around $200 Million to get VBLOC approved. We know and I have read their extensive patent estate and it is excellent.
Fully diluted at a price less than $2.00 I figure 150 MM shares. At $2.00 a share that is $300 Million. That has to be a steal for Medtronics or Thermo Fisher. You can blow out the entire staff of ETRM as they would be redundant. As Pat Wash says this company is a steal and I agree. I added at 30 cents. I suspect we are not hearing anything from the company as a few holders like Kevin Douglass may have approached them and suggested selling the company, or better taking it private. Either way management and the do nothing BOD does not have enough stock to do anything.
With obesity becoming a crisis...read the latest Medicare statements on how fat old people are and how much they are costing...only a miracle like a reimbursement agreement will save Knudson and Lea. CPT coding really does not matter as we have a CPT 3 code which is fine with insurers.
The silence emanating from the company tells me something is afoot....Open for comment and discussion.
Also the dopes yelling sell at 30 cents please keep your input realistic.