A few weeks ago Cytosorbents Corp (CTSO) rebounded quickly after a post-earnings drop, indicating continued investor confidence as the commercial roll-out in Germany got underway, but a down market has returned shares right back to the dime level. Consequently, the dime level has proven to provide investors of all types with opportunities to jump in and take up a position in the company, whether it be for a long term hold or short term trade.
This trip to ten cents may be no different.
After flat lining for a couple of weeks prior, volume picked up on Monday to open the new trading week, providing an indication that investors may yet again be ready to take advantage of a CTSO pullback.
Those jumping in for the long term are doing so on the potential of the company's flagship product, CytoSorb, to gain steam in the medical arena as a treatment for conditions of high cytokines, including severe sepsis, for which there is no effective alternative currently on the market.
Although CytoSorb will need time on the market to prove itself to the medical community who may remain skeptical until they "see it to believe it," the European medical authorities had seen enough last year and approved the product before the trial was even complete. While the final judgement may yet to be determined for many, that approval came as a sure sign of validation and confidence.
Currently, Cytosorbents is taking a methodical approach in introducing CytoSorb to the market, starting in Germany with plans to expand to the rest of Europe also in the works.
The company has also developed the HemoDefend blood purification technology which could lead to the signing of a partner or an outright sale of the technology. Either event would likely provide Cytosorbents with enough cash to make a significant dent in the costs associated with launching a new product.
Adding to the trend of validation and confidence, the US Army also arrived on scene and awarded the company a grant late last year. The move fueled speculation that this relationship would evolve and possibly even expand to other departments of government.
Again, the possibilities are there, it may just be a matter of potential suitors seeing a little more data that it works before jumping in head first. As CytoSorb goes to work on the German and full European markets, that additional data should start rolling in.
Back to trading for a dime, CTSO is again one to keep on the radar screen.
When this one moves, it moves quick, and the moves undertaken by management over the past year could be positioning the company for the big time.
As has been the case for some time, patience is required with this speculative play, but patience has already been rewarded on multiple occasions over the past few years with runs toward the half dollar mark.
If CytoSorb continues to prove effective, then that could just be a start.
Disclosure: Long CTSO.
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