HTG Molecular Diagnostics Inc (NASDAQ:HTGM) Could Be A 2017 Home Run

HTG Molecular Diagnostics Inc (NASDAQ:HTGM) ran up to the tune of 13% on Thursday on an 8K release detailing management incentives. This is a company we have persistently put forward as being undervalued and that's very much due a run, be it news driven or by way a short squeeze.The latest 8K is strong, but the run we’ve seen subsequent to its release is just the beginning. Low float, high short interest, a great (under the radar technology) and a decent cash holding means that any news is going to send the stock soaring on its release. We saw the company run to double figures back in March on a report that it had picked up CE marking in Europe. With the right release, we could see the same levels and higher overnight.So, is there scope for any such news?Yes, and lots of it.For those new to the company, it's a biotechnology play and it’s working to commercialize a revolutionary diagnostics test. Specifically, the test is called EdgeSeq, and it’s designed to improve the utility of certain types of samples of particular cancers. Cancer tests are becoming increasingly obsolete as the samples used for testing become smaller and the methods used to extract them become less invasive. This might not sound like a big problem, but it is.In the past, a surgical resection sample would be split across, say, twenty different testing units (big tabletop machines), each of which would use a different method to establish type, presence, severity, etc. of the cancer in question.Now, physicians are extracting tiny amounts of tumors (as small as a countable cell volume) and the samples just aren’t big enough to spread across the aforementioned twenty machines. This means testing has to be limited, at a labs discretion, and it results in things being missed.With EdgeSeq, HTC has taken the twenty testing machines and bundled them into one. It can use a single sample to conduct all of the different types of tests. It's basically brought the hardware side of the space up to speed with the sample side and it's a game changer.Right now, however, no-one's taking any notice. No-one in the retail investment world, that is. The industry is very much alert to the technology's potential, HTG has deals and collaborations in place with some of the giants of healthcare – Merck & Co., Inc. (NYSE:MRK), Bristol-Myers Squibb Co (NYSE:BMY) and Qiagen NV (NASDAQ:QGEN) to name three – and is working to get this technology launched to maximum effect in Europe, right now, as afforded by the above mentioned CE marking.On the US front, things are also developing quickly. The company is around half way through a sort of rolling regulatory submission with the FDA (it's not technically a rolling submission, but it's the equivalent process as relates to this sort of testing type technology application), and expects to submit the third and fourth (final) parts of the submission during the third and fourth quarters respectively this year.When the submission completes, there's no immediately obvious reason why the agency won't green light the technology very quickly (as we've said, there's a real need for it in healthcare facilities right now). As we've said, we saw HTG run 400% on the European regulatory news. Imagine what we’ll see when the US part of the puzzle falls into place.We said it last time and we'll say it again – the real and only significant risk here lies in the potential for dilution. The company is gong to need some capital (although not a huge amount, the big name partnerships serve to foot the bill somewhat) and early holders are probably going to have to take a bit of a hit to proportionate share value on the back of an issue.Long term, however, there's so much growth potential here, and especially at current prices, that this is far from prohibitive to an exposure.We will be updating our subscribers as soon as we know more. For the latest updates on HTGM, sign up below!Disclosure: We have no position in HTGM and have not been compensated for this article.