Tuesday’s trading sessions ended poorly for nearly all of the top 10 penny stocks traded, especially for those who didn’t see the end of Xumanii Inc. (XUII) on the horizon like we pointed out yesterday. However, one Company which stood out above all the rest, catching our attention early on, was SafeStitch Medical, Inc. (SFES). They not only closed green for the 8th consecutive trading session, but SFES stock also had its largest volume trading session today since May as well. Trading well above their 10-, 20- and 50-Day moving averages, just how fat can this medical device maker get before becoming too obese for its own good?
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SFES Stock Quote
Market Cap: 40.10M
Last: 0.65 ▲ +0.10 (+18.18%)
Dollar Volume: $119,131
Issued and Outstanding: 61,699,276
1st Resistance Point: 0.6867
1st Support Level: 0.5967
2nd Support Level: 0.5433
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Just a few weeks after the Annual Meeting of Stockholders of SafeStitch Medical was held on June 18, trading became more active for SFES. 13D’s were updated for Jeffrey G. Spragens, President and CEO, as well as Dr. Jane H. Hsiao, Ph.D., Chairman of the Board of the Company as well as Vice-Chairman and Chief Technical Officer of OPKO Health, Inc. (NYSE: OPK).
The amended filings came shortly after Hsiao bought 4 million shares of SFES stock, worth $1 million, while Beneficiary Owner Dr. Phillip Frost bought 2 million shares, worth $500,000. With the ties to billionaire medical device mogul and CEO of OPKO Health, Hsiao is also linked to Prolor Biotech, Inc. (NYSE AMEX: PBTH), a development stage biopharmaceutical company which OPKO agreed to purchase in a share swap deal, 0.9951-for-1, worth an estimated $480 million.
Hence, the insider buying from 2 months ago, right around when SafeStitch Medical reported their Q filing for the 3 months ended March 31, 2013, has triggered a stimulus in SFES of recent and looks like it still could have legs to do some more uphill jogging.
As of March 31, 2013, SafeStitch had more than enough cash on hand ($1.834 million) to cover their accounts payable to vendors ($1.039 million). Sales were just starting to trickle in on their products already cleared for commercial marketing by the FDA. While they continue to focus on capitalizing on the commercialization of their AMID HFD of which 36 units were reported to be sold during Q1, the only thing that can be happening is a move towards being acquired by one of the Frost entities.
OPKO could handle it having just readied to sell up to $175,000,000 of 3.00% convertible senior notes due 2033. Whatever the case may be for SFES, bullishness has taken over and a possibility of seeing a new high above 0.75 before the end of the week is a strong possibility considering that their lead product is designed for use in the treatment of obesity patients which accounts for an estimated 100 million Americans, or approximately 38% of the U.S. population.
About SFES Stock
SafeStitch Medical, Inc., together with its consolidated subsidiaries, is a developmental stage medical device company focused on the development of medical devices that manipulate tissues for endoscopic and minimally invasive surgery for the treatment of obesity, gastroesophageal reflux disease (GERD), Barrett’s Esophagus, esophageal obstructions, upper gastrointestinal bleeding, hernia formation and other intraperitoneal abnormalities.
Last 5 Trading Sessions:
The recent run on SFES has caused for it to be forced onto the list of penny stocks to watch. Resistance points are being surpassed daily and the 52 week high, set back in September ’12, is within striking distance which could invoke a frenzy of attention onto SFES stock, another Frost connected medical play with significant upside to it.
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