Sunshine Heart Inc. (SSHN.PK): Friday's nearly thirty percent price drop for shares of Sunshine Heart could ordinarily be considered a warning sign for investors who may have been considering jumping in, but in this particular situation, the positives far outweigh the negatives and SSH could be another candidate ready to emerge from 'under-the-radar-land'.
For starters, Friday's trading volume alone exceeded the number of shares traded for the past two months COMBINED.
That's huge, although trading over that time frame was very light.
It's Sunshine's technology that may be attracting the new interest. The company has developed the C-Pulse Heart assist system that could "revolutionize the treatment of Class III and ambulatory Class IV heart failure," according to comments posted on the company's website. Currently being tested in clinical studies for effectiveness, the device may be able to significantly improve the quality-of-life and performance of patients suffering from moderate to severe heart failure. If proven successful, the product will also be able to halt the progression of the disease.
Also in keeping with the current surgical trends of developing less invasive surgical methods, the device can be implanted with minimal intrusiveness - a huge plus in today's market - and is also implanted outside of the bloodstream, another significant advantage over current competition.
In addition to exposure on both MSN Money and Fox Business last week that likely led to increased investor interest, Sunshine has a few key catalysts pending over the next few months and quarters that could continue to attract new attention.
The company submitted earlier this year documentation to receive CE Mark approval in Europe for its device and has also completed the initial steps in preparation for conducting a pivotal trial in the United States. Assuming all goes well, Sunshine could register its first sales this year and also initiate the US trial at right around the same time.
Given the scope and impact that this potential blockbuster new product could have in the heart failure market, it'll be well worth keeping an eye on shares of SSH over the coming months. Friday's action is an indicator that investors may be starting to wake up to this story.
http://seekingalpha.com/article/696541-weekly-stock-watch-week-of-july-1
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