Company has been plagued by system issues, dilutive financing, short sightedness and questionable management; all of which are great reasons to say the bar is about as low as it can get on this one
. About a year ago a small biotech hedge fund took control (DAFNA), kicked out the CEO and installed new blood. DAFNA also brought in a high caliber roster of accredited investors (including Joe Kiani who is the CEO and founder of Masimo
) who have until this point remained very quiet. CEO recently completed a "round the world tour" visiting key accounts and pitched the company at the Piper Jaffray conference.
The chart tells the story; this is a classic cup and handle
with a small spike at the end that has since settled down to form another base. We are looking for the stock to take out the $1.10 high on strong volume
, which we feel is a near term target in the next 3-4 weeks. The catalyst for this event will be a PR
from the company outlining a new strategy to jump start the entire premise of their system as a "robotic vascular solution". Risk reward here looks decent and we are very long.
Final target here is $6.50 which should be in about 2 years.