It's called "bad news, good action"....I've been trading stocks for 20 years and I've found it to be one of the most reliable indicators that a stock is about to reverse trend.
The same can be said for "good news, bad action" events. This is usually a sign that there is no shareholder conviction and the stock is likely going lower.
Agreed. Also it appears that investors are getting less panicky holding AIG shares.....if this was 2 years ago and AIG missed quarterly earnings by 67%, the stock would be down 7% after hours.
This shows that Wall Street is starting to trust AIG's numbers, despite some of the quick money chasing hedge funds leaving AIG recently. Rising interest rates are coming and they will help AIG earnings also.
And I bet when pacemakers were first introduced there were a massive number of "sky is falling" types who said that no one would allow a mechanical device to be inserted inside of them even if the device was needed to keep them alive.
One of three things is going to happen:
1) A buyout is going to be announced in the very near future and prices greater than today's price.
2) The product will start to sell and the earnings will start to roll in. Revenues/earnings will be positive and growing. whether or not insurers decide to cover the product is irrelevant. It will still sell even without coverage. The stock price will follow upwards.
3) Management may issue a small secondary share offering to help the commercialization process costs. The product will then start to sell and the earnings will start to roll in, whether or not insurers decide to cover the product is irrelevant. It will still sell even without coverage. The stock price will follow upwards.
The FDA would not have approved this product if it wasn't highly needed/viable, nor would they have approved it if management were a bunch of idiots.
Kevin Douglas is long ETRM and he is one of the greatest investors of all time (bought Monster stock before it went on a 50x run).
Long and strong.
This may have something to do with why more accumulation hasn't taken place. A stock must close above $2.00 for a week straight for mutual funds/ETFs to be able to accumulate them per their prospectuses.
At $15K per device (that’s competitive with comparable surgery options) they need just 2,000 procedures a year worldwide (USA+Europe+Australia) to have the same revenues of NVRO (30 Million a year) which is trading at about 1 Billion cap, 10 times the current ETRM's cap. 2,000 procedures a year would be less than 1% of all those who opt for gastric bypass annually.
They have 90% margin gain on the product, which is huge.
Moreover Maestro is likely to get insurance reimbursement because it fills an important gap, according to Chris Lewis, an analyst at Roth Capital Partners.
So the 2k procedures / year worldwide seems like a very conservative target.
Target at least $7 (very conservative compared to NVRO).
First FDA approval for anti-obesity device in the last seven years.
300,000 people a year get their stomachs sawed open to have gastric bypass, to which many of them have to s*** in a colostomy bag for months afterwards. This FDA approval means that nearly all of these people are now eligible for a product that can prevent that from needing to happen.
Posted by Stephan Byrd on Jan 14th, 2015 // No Comments
Equities research analysts at Canaccord Genuity set a $4.00 price objective on shares of EnteroMedics (NASDAQ:ETRM) stock in a research note issued to investors on Wednesday. The firm currently has a a “buy” rating on the stock. Canaccord Genuity’s price target points to a potential upside of 185.71% from the stock’s previous close.
EnteroMedics (NASDAQ:ETRM) last issued its quarterly earnings data on Wednesday, November 12th. The company reported ($0.08) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.10) by $0.02. During the same quarter in the previous year, the company posted ($0.11) earnings per share.
EnteroMedics Inc (NASDAQ:ETRM) is a development- stage medical device company.
There is a very popular biotech message board on investorshub. The founder has a ton of followers and he recommended ETRM last week to his followers. Most of those people woke up to 70% gains this morning and I suspect much of the selling pressure came from them cashing out on the quickest money most of them will ever see in their lifetimes.
300,000 people are willing have their stomach's sawed open and stapled shut, after which many have to s*** in a colostomy bag for months after.
Yeah I think many will take a pacemaker like device inside themselves.
We are going a lot higher folks. This product has been approved by FDA.
Took a look at the Yahoo message board for Celgene in April 2001 when the stock bottomed at $1.90 per share on a split adjusted basis. So much negativity was abounding there during that time. 13.5 years later and people who bought then would have made 60x their initial investment. Wow.
MDT paid about $350 millions (260+royalties) for Transneuronix 10 years ago for its device that didn't even work and failed miserably its trial. Results were so bad that they didn't even ask for FDA approval.
Now you have:
* Much much better efficacy and safety
* FDA approval (if it's approved and the buyout comes out after the approval)
* 10 years of inflation
* Obesity rate much higher than 10 years ago
* Worldwide rights (I don't know if Transneuronix had ww rights too)
So what do the 350 millions become ? I think 500 at the very least, probably more ($7 a share or more)