The key to successful investing is finding momentum BEFORE it happens. Now we are looking for the next big runner and we believe it could be InspireMD Stock (NYSEMKTS:NSPR).
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. In this article, we take a look at the latest news and why a higher share price is in order for InspireMD stock.
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.
The FDA has granted approval to proceed with a pivotal study of the CGuard Carotid Stent System, CARENET-III, for prevention of stroke in patients in the U.S. The CARENET-III study would be a 315-subject study with up to 40 U.S. institutions. The company will provide additional details as plans advance. CEO Marvin Slosman said:
“This will be the first U.S.-based study of CGuard which is a cornerstone of our global expansion plans.”
InspireMD Stock Cheap At Current Levels
InspireMD stock has a current market cap of just $12.3 million. Shares are trading at just 3.73x sales, 0.88x cash, and 0.33x 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 countless small caps. These stocks are trading off pure momentum. Considering the news that just hit that tape, it looks like shares of InspireMD stock 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 and have NOT been compensated for this article.