seeking alpha agrees with hotcopper posters

Seeking alpha. Agrees that last weeks bad write up by one journo was garbage. Hotcopper posters here were right on the money.

"Sunshine Heart (SSH): Sunshine shares dipped to lows not seen in months last week and could be positioned for a rebound, considering the pending catalysts of commercialization in Europe during the current quarter and the initiation of a pivotal trial in the United States for C-Pulse that will be geared towards and FDA approval. The C-Pulse Heart Assist system, for those new to Sunshine, is a device that has thus far proven in trials in both in North America and Europe to halt - and even reverse - the progression of heart failure in patients with Class III and ambulatory Class IV heart failure. Milestones have been a-plenty this year, with an approval in Europe for C-Pulse and an Investigational Device Exemption (IDE) by the FDA that clears the way for development in the US.

Given the timing of these developments, Sunshine is positioned to register its first commercial sales at right about the same time as the initiation of the US trial, marking two significant milestones within the current quarter.

There were some investor concerns aired last week on the Seeking Alpha website, however, that may have led to the drop in the SSH share price. Highlighting those concerns were the purported lack of funds the company has - or will have - to advance C-Pulse to market in the United States. Other concerns were raised that competition from Heartware International (HTWR) and Thoratec (THOR) essentially render the C-Pulse as irrelevant in the market for heart-care devices. While any investor concern should be entertained for the sake of solid DD, these particular concerns - at the face value in which they were presented - are misleading.

Sunshine may again need to raise funds at some point in development, a given for all still-developmental companies - but one cannot ignore the fact, too, that C-Pulse can start pulling in revenue from European sales at any time now. It shouldn't be expected that immediate returns will alleviate any future financing needs, but should the product gain swift share on the European market, it could drastically reduce such threats. Additionally, a recent round of financing has positioned the company on sound footing until the mid-way point of the US trial, at which point a potential partner could come in and make a move. The idea of a partner coming in may not be so far-fetched, considering that the recent financing deal included a multi-million dollar up-front payment by a "strategic investor" who will also send a member to Sunshine's board. Such moves strongly hint at partnership or buyout interest.

In regards to competition on the market, C-Pulse is implanted outside of the bloodstream, in direct contrast to the standards of care currently on the market for heart-assist devices. Because of this fact, the implantation procedure is considered 'minimally invasive' and greatly reduces the potential of contamination that could result from introducing foreign bodies into the bloodstream. Additionally, current treatments for Class III heart failure including limiting a patients activity and normal routine, where patients treated with the C-Pulse have noted an overall improvement of physical activity, according to the early studies that formed the basis of the European approval.

Given the swift share price decline last week and the largely misleading investor concerns, Sunshine Heart will be one to watch during the coming week."


http://seekingalpha.com/article/939661-weekly-stock-watch-for-october-22-2012?source=nasdaq