With Overhang Gone, BTCY Could Generate Triple Digit Returns for Shareholders
Ekso Bionics (EKSO) shares traded from$1.80 to $3.00 in the past 30 days based on commercial success and the potential for a substantial bump in revenue soon. Investors recently long EKSO have made 65% with more potential upside to come.
Tandem Diabetes Care, Inc. (TNDM) has traded from $2 to $34/share this year, a gain of over 1700%. This is based on improving commercial success with their diabetes business and another FDA approval in the summer.
Biotricity (BTCY) could be poised for a similar breakout and investors long the story could see the returns seen by those long EKSO and TNDM with the right execution. Their first sales report is coming for their newly approved medical device, and stock has broken out on volume.
BTCY traded up 50% last week but is still at a near-52-week low, and the stock traded as high as $12 after their approval. Rumors are that an early investor in BTCY sold over 1 million shares in the open market over the last 90 days, which may explain the big move up as this has abated.
NEW YORK, NY / ACCESSWIRE / August 20, 2018 / Ekso Bionics (NASDAQ: EKSO) has been on a tear this month, rising 60% since their second-quarter earnings announcement after being stuck in sideways action for months, while no one seemed to care.
Tandem Diabetes Care (TNDM) has likewise exploded off a long-term bottom around $2.00 this year, rising as much as 1700% as investors have gotten on board with their shift in strategy. Their diabetes pump business is booming and they just received an FDA approval for another device.
What's going on here? Investors are realizing that these stocks' recent stagnation didn't accurately reflect the fundamentals, and a few things lined up for a breakout move. We've seen this before in the healthcare sector as the technicals align with quality fundamental news and expectations among investors that there's more good news to come.
First, Ekso reported encouraging revenues of $3 million in the quarter, up 59% from the same period one year ago, and Ford Motor Company (F) has committed to expanding an initial pilot program for their EksoVest at 15 of their assembly plants in seven countries. Second, it's rumored that the company may have secured a $5 million contract from the Department of Veterans Affairs setting up a major potential "catalyst" for EKSO if this deal is announced in a press release. And finally, EKSO was primed for a technical breakout to the upside after a period of sideways trading almost all of 2018, with $2.00 acting as resistance for the shares repeatedly.
With this move, the technicals and the fundamentals were aligned; major overhang sellers have finally disappeared, and EKSO was off to the races.
You can see this dynamic all summer in shares of TNDM as well, as this has been one major winner as investors got in ahead of their FDA approval of the t:slim X2 Insulin Pump with Basal-IQ Technology and their pump business continues to grow.
This Same Recipe Is Coming Together At Biotricity (BTCY), A Public Company That's Been Mostly Left For Dead In 2018, But Could Be Due For A Big Bounce
Biotricity is a medical device maker that secured their first U.S. FDA clearance in December of 2017 when their Bioflux mobile cardiac telemetry device (a remote EKG) was cleared for sale. They're now in the midst of launching the heart monitor across the U.S., and they should report their first revenue in the next few months.
Like EKSO and TNDM, BTCY had been depressed for most of the year. But rumor has it that a major seller has finally abated and the stock could be poised for a breakout as some key potential news events align in the second half of the year.
First, Biotricity has been focused on expanding their sales team and deploying across most of the United States; their first major deployment took place in April at the San Antonio Endovascular & Heart Institute. Their first revenue report will be released during the coming months.
Second, the company has said publicly that they expect to submit an application for FDA clearance of their NEXT key device, called Bioflux 2.0, by the end of 2018. They've also been hinting at their second, completely new product being revealed sometime during the third quarter. These are two major potential inflection points for BTCY, and they should start to get attention from traders.
Finally, BTCY shares have just broken out technically, on substantial volume. Rumor has it that an early investor was forced to liquidate their holdings, and the seller may have finally abated and buyers are stepping in with big volume. With this first hurdle cleared, the stock might easily return to the $4-5 range, where it settled after their December approval.
The healthcare sector has its risks, and BTCY is no exception; without proper funding, they may never compete with larger device makers. BTCY, EKSO, and TNDM should all be viewed as high-risk high-reward healthcare equities. Small-cap companies can generate big returns or can go to zero, and although we don't give investment advice, we always caution our readers that they should only buy high-risk, high-reward small cap stocks if they can afford to lose their entire investment.
Ultimately, BTCY is addressing a huge market opportunity. Public companies Biotelemetry (BEAT) and iRhythm (IRTC) are generating over $500 million in combined annual sales from their own similar mobile cardiac devices, and BTCY is nipping at their heels. Their next device could be just as big, and traders should be looking for information about any possible FDA catalysts. At a fraction of the valuation, this kind of breakout could be the beginning of something bigger.
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