The key to successful investing is finding momentum BEFORE it happens. Just last week, we had our subscribers in Genius Brands International (NASDAQ:GNUS) before it’s run to over $11. Now we are looking for the next big runner and we believe it could be InspireMD Stock (NYSEMKTS:NSPR).
DDTG founder Dave Portnoy has figured this out and why he has gotten into InspireMD Stock before its major run happens. InspireMD has a history of producing major price spikes and then management does an equity raise and dilutes the crap out of existing shareholders. We hate to say it so bluntly, but it’s true. InspireMD has not rewarded long-term shareholders. Just look at the 2-year chart and you can see it for yourself.
However, the good news is that InspireMD Stock looks to be setting up for a major breakout based on the chart below. As you can see, the lows of $.39 a share held and we are now breaking through the downtrend line. With the RSI at just 49, a move to $1 looks to be in the cards. This is where the bulls will be tested and if InspireMD stock can break above $1, it’s blue skies ahead.
About InspireMD Stock
First up, here’s a little background info on InspireMD stock for those that aren’t familiar with the company. As a quick introduction, it’s a medical device company based out of Israel (but with offices in the US and Europe) with a portfolio of products, all based on a proprietary technology called MicroNet.
It’s basically an alternative construction of a traditional stent, which removes some of the blockage risk associated with the current standard of care devices in the space. There’s plenty of evidence supporting its superiority to current SOC, and the various iterations of the product (CGuard (Carotid), MGuard (Coronary), NGuard (Neurovascular) and PVGuard (Peripheral) have addressable markets that total to something like a potential $4.5 billion in annual revenues.
Why InspireMD Tech Is Superior
When a patient goes in for a stent fitting, a physician puts what essentially amounts to a small piece of mesh shaped tube into their blood vessels. This provides reinforcement for the vessels in question and allows blood to flow freely through them. However, the current composition of these stents means that plaque particles can get trapped in the mesh, and cause blockages. These blockages lead to strokes. As a result, many at-risk patients don’t qualify for stent fitting because of stroke risk.
Besides the US, InspireMD is expanding into Brazil, France, and the Asia/Pacific region. The company is also establishing another pillar of growth by further exploiting its reverse flow technology in a procedural protection device and expanding its product pipeline with CGuard with MicroNet into new high-value indications. The potential here is enormous.
InspireMD Stock Cheap At Current Levels
InspireMD stock has a current market cap of just $6.69 million. Shares are trading at just 0.39x sales and 0.7x book value. Considering that the company just raised $10.7 million, it looks awfully cheap at these levels when you consider its current cash on hand exceeds its current market cap.
We have seen what’s been happening in the markets with GNUS, HTZ, OAS, WLL, and countless others. These stocks are trading off pure momentum. Considering that Dave Portnoy has 1.5 million Twitter followers and the Robin Hooders have been piling in on InspireMD stock, it looks like shares are heading higher. It’s not a question of if, but when.
Good luck to all (except the shorts)!
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Disclosure: We have no position in NYSEMKT:NSPR or NASDAQ:GNUS and have NOT been compensated for this article.