|Written by GSCR Staff|
|Wednesday, 16 December 2015 07:02|
In case you have not heard, Star Wars: The Force Awakens comes out Friday. We mentioned how the movie could ‘dominate’ stocks, but we were speaking more about Hollywood and Disney (NYSE- DIS) in particular. With the market turmoil and imminent Fed announcement we thought we would look for value in the microcapsector, biotech.
The chart below illustrates and approximate head and shoulders pattern that has emerged for Corindus Vascular Robotics, Inc. (NYSE – CVRS - $3.03) over the last six months. Now may be time for a trade.
Corindus Vascular is an interesting Company that is a global technology leader in robotic-assisted percutaneous coronary interventions (PCIs). The Company's FDA cleared CorPath System is the first medical device that offers interventional cardiologists PCI procedure control from a radiation protective interventional cockpit. This all sounds very Star Wars to us, but this is a robotic system that facilitates stent placement for percutaneous coronary intervention procedures by allowing a physician to measure, manipulate, and advance devices with robotic precision.
The Company is still in the development stage so EPS and some other metrics may not apply. Another technical metric that may indicate a buy is the short float of just 7%. Also, Corindus Vascular had $50 million cash as of the end of 3Q15 with just $8.6 million of debt at that time. Finally, the Company just received the final FDA approval for the CorPath System in October which is a unique product in the industry. Deal flow should be in the pipeline and will facilitate big pops next year.
We believe the healthcare industry will remain an important investment category in 2016. CVRS offers a niche product with a cheap price at the current time. Look for a climb back to $4 sometime in 2Q16 or sooner.
Have a great day!
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