ALR Technologies Inc (OTCMKTS:ALRT), the medical device company, is drawing the the market’s attention again.
The share price woke up on October 16, 2017.
From $0.032, the share price went up to $0.05 delivering more than 50% stock returns to those, who followed our advice and assessed its new announcements.
Have a look at it:
Our readers will remember well our previous article, wherein we noted that FDA had approved a feature of the ALRT diabetes management system. It made the share price increase from $0.01 to $0.15 in only one session.
We said that if the company will be able to commercialize the medical device, it would be a game changer. Additionally, we concluded that it was a name to be followed closely.
In fact, we were not wrong in saying so.
Recent Developments – What happened?
On October 16, 2017, the company released more details about its patent pending Predictive A1C innovation, which the market appreciated.
It provided the following explanatory video about the system:
Additionally, the company noted that clinical trials show that “managing the blood glucose data from patients improves outcomes of insulin dependent patients. ” Furthermore, information about new research was given. The new trial studies conducted by ALTR will assess outcomes for non-insulin dependent patients using the patent pending Predictive A1C feature to manage the data.
The company also provided more information about “the unacceptable outcomes of diabetes patients” in this video and noted how the new system provides solutions. Additionally, in this other video, the company highlighted that the system helps analyse large amount of blood glucose data from each diabetes patient, which is a big challenge for healthcare providers.
Finally, in this other video, it was shown how Predictive A1C provides an ongoing indication of patient status:
Regarding the reporting of the company’s financial statements, something very significant was mentioned in the same press release. It was hidden at the end. ALTR said that it had provided the SEC a letter of intention to correct its reporting deficiencies by January 26, 2018.
We believe that the market should have appreciated the remark. We do as well because once the company uploads its most recent financial statements, more market participants will be willing to analyze the company. Thus, demand for the stock could increase. We believe that the share price increase could be justified partially by this news.
Financials and Share Statistics
As we believe that the company is becoming a followed profile, we believe that having a close look at the financials provided will interest our readers. Even if they are outdated, they will help understand the company’s financial situation. The following are the most significant assets and liabilities:
- Cash and Cash Equivalents: $58,000
- Other Current Assets: $6,000
- Short Term and Current Long Term Debt: $11.2 million
What’s our take?
We believe that the company may need to raise capital in the near future, which may create some shareholder dilution. But, if the company continues to grow and innovate, it will definitely offset the dilution.
Additionally, if the company continues to be popular in the market and keeps positive announcements coming, the share price could be off and running.
Furthermore, we had a look at the share structure statistics. Have a look and form your own opinion:
|Authorized Shares||500,000,000||a/o Feb 10, 2015|
|Outstanding Shares||242,777,909||a/o Feb 10, 2015|
|Held at DTC||Not Available|
|Float||154,306,740||a/o Feb 10, 2015|
What did you see?
The interesting thing is that the float, the amount of shares owned by the public, is very low.
This means that the stock price volatility is expected to be high, as large market orders will affect the share price significantly. We highlight this fact, as many market participants appreciate low float stocks.
Currently trading with a market cap of $13 million, ALRT surprised the market again. It is the second time in October that the company has delivered great news making the share price jump. We said that the name should be followed and we were not wrong in saying so.
We believe that there are many catalysts that could make the stock price jump again. The release of new financial statements, which has been promised, seems very important. But, in addition, the initial sale of the Diabetes Management service should be announced soon.
To sum up, keep a close eye on this name, as new announcements are moving the market.
We will be updating our subscribers as soon as we know more. For the latest updates on ALRT, sign up below!
Image courtesy of oh dawie via Flickr
Disclosure: We have no position in ALRT and have not been compensated for this article.