Yes there is a lot of competition, and the company is losing money. Yes the shorts are right.
But molecular diagnostics is just getting started and there will be room for all to grow during the next several years.
I've been following Cardica since 2008. They developed cardiac products which impressed me but sales have been tepid. I'm also impressed by the Microcutter but since it just hit the market there aren't enough data points to tell whether sales will take off. They just got FDA clearance raised enough cash for 2 years. If they can sell the microcutter this will be an excellent investment, if not they'll have to sell the company. Zack is obviously assuming that the microcutter will do well, but a lot of people look at the cardiac products and become skeptical. I have no idea what barriers to entry exist for marketing the microcutter so I am waiting on more data points during the earnings report. I doubt nasdaq will delist Cardica because its under a buck, since they have so much going for them (except for the stock price).
This stock won't do much until the MicroCutter starts selling briskly. We'll have to wait for the earnings report in August.
I'll take the contrarian view that apparel has bottomed. May's Retail Sales report showed good recovery in Clothing, Clothing Accessories and Department stores. Let's see what this Friday's Retail Sales release shows.
I got 5 Thumbs down so far for posting the obvious! Its also obvious that they want NSPH to keep going down. The value guys always spoil the short's party.
Nanosphere looks like a bargain if you are willing to endure the money losing phase of its existence.
Slide 2 of the presentation says "predictions of when “breakeven customer base” is achieved and its relationship to our cash flow position, needs and “burn” may prove to be inaccurate"
That's the reason for removal of the breakeven slide. They don't want a lawsuit if they miss.
Still, the coal fired plants will keep generating for years to come, and they will have to reduce NOx so it doesn't spill over into neighboring states.
Revival of the Cross State Air Pollution Rule (CSAPR) in USA and China's urgent commitment to clean up their air SHOULD bring in more work for Fuel Tech. The recent acquisition of PECO-FGC is immediately accretive. The stock price came down so it looks attractive to me.
The peak market cap was $756 million in 2000 compared to $484 million now.
Revenues were $20 million in 2000 compared to $188 million in 2013
Finally FCEL is priced at an investable level.
Can you believe how the dreamers bid up Fuel Cell into the stratosphere during the tech mania? Fourteen years later, after losing 96% of its value, the long forgotten dream is becoming a reality.
I doubt Hydrogenics has anything to do with FCEL trading today. Tech is selling off today. Hydrogenics had $8.1M in sales compared to $44.7M for FCEL.
The pessimist look at the selloff from the March 11 peak of $4.74 but that was a ridiculous rally based on a Plug Power's run up. The price is down to 2.7 x sales which is reasonable if you think that revenues are about to take off and expensive if you think that they don't. As electric cars begin to stress the grid, fuel cells will provide an ideal solution.