Safestitch Medical, Inc. (OTCBB:SFES) Doubles In Value, Breaks Through $1
Safestitch Medical, Inc. (OTCBB:SFES) had an amazing start this week. The company surged upwards and didn’t stop until it had long surpassed the $1 dollar mark closing at $1.39. Starting from $0.77 this was a 101% gain in a single day.
Equally as impressive was the interest shown in the stock. While during the previous session SFES had a traded volume of 99 thousand, yesterday it exploded with a million shares changing owners. The momentum around them started accumulating last Friday when the company finished 25% up.
SFES are a medical company concentrated on the creation of devices for the treatment of obesity with minimally invasive surgery. The main product they offer though is the AMID hernia fixation device, a stapler used in hernia repairs. They are still in the development stages which can be plainly seen in the latest financial report for the first quarter of 2013:
- $1.8 million cash
- $3,6 million total current assets
- $1.1 million total current liabilities
- $11 thousand revenues
- $565 thousand net loss
Although the they have an accumulated deficit of $30 million the company has managed to improve vastly compared to the same period last year. Net loss has been dramatically reduced to a quarter of the $2.1 million they had, they are now generating at least some revenues and liabilities have been slashed in half.
SFES have never been part of a paid promotion and have no dealings with toxic funders making them quite unique among the other pennystocks. They were quite fortunate to have three of the people behind OPKO Health (NYSE:OPK) involved with them. Dr. Jane Hsiao and Steven Rubin are part of the management of the company, while Dr. Phillip Frost is one of the largest shareholders. During the last private placement of stock by SFES nearly half of the shares were bought by insiders. Not to mention that the company’s headquarters are located in the same place as OPKO’s.
The company has a lot going on for them but the risks are equally as numerous. Revenues are nominal for the moment and the current price per share is way overpriced. Corrections may begin immediately if the hype isn’t supported by a press release. Nevertheless, chasing after stocks that have already made such a sharp jump is never a good idea.
Yesterday Amanasu Techno Holdings Corp (OTCMKTS:ANSU) continued skyrocketing up the stockchart by tripling in price closing at $1.27. Despite disclosing no received compensations the pumpers that were involved managed to boost the company to such unproportionae heights. Taking a careful look at them reveals that ANSU is far from a promising ticker. Xumanii, Inc (OTCMKTS:XUII) dropped for a second session in a row and went below $0.30. It seems that Awesome Penny Stocks will fail to lift the ticker above the $1 dollar mark despite all their efforts.
