Saturday, May 19, 2007

Update on ACUS

Zack's Report

Although I don't think he is an expert in this field, however I agree with most of what he thinks on ACUS.

"
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So you’re seeing a buying opportunity here. You’ve got a Buy recommendation on the stock, I take it?

Absolutely. It was off over 30% after the data came out, and I think that was kind of a knee-jerk panic reaction. But if you actually see the differences between an Imagify ultrasound, a regular ultrasound and nuclear, I think you could lean towards feeling like Imagify ultrasound is the way to go. It seems to be the best tool for detecting disease.

What is your price target for the next six months or so?

It might be hard to get there is six months, but we see $5.00 as fair value, and we think the stock could go above $5.00 on FDA approval. They’re probably going to file in the next six months, and that could act as a catalyst. Then we’ll hear from the FDA sometime in 2008, and if the FDA approves, we see $5.00 or higher as where the stock is going.
...
"

PPS=$5 only gives market cap <200M, for a drug which can bring about $400-500M revenue annually (although CEO claims $2billion market I don't buy it), this is a very conservative estimation. However the assumption here, it will get FDA approval, and the possibility of failing so is really low IMHO.

2 comments:

wu said...

Today, Acus has a good run.:-)

Anonymous said...

I worry about the volume.
although it picked up a little, still pretty low.