Monday, June 8, 2009

MedaSorb (MSBT.ob) and Digital Angel (ADSX/DIGA)

An anonymous poster on VFC's Stock House asked me to comment on these two stocks, so although I'm a bit late with my response, I will.

MSBT.ob and ADSX (which recently began trading as DIGA)

MedaSorb Technologies Corporation (MSBT.ob) actually works through it's wholly-owned subsidiary, CytoSorbents, Inc.

CytoSorbents' primary focus, according to the company's website, is CytoSorb, a medical device that, in short, cleans toxins from blood.

CytoSorb is currently undergoing tests in Europe (to treat Sepsis) that are due to conclude later this year. So far the tests look good, and all goes according to plan, CytoSorbents expects a revenue stream from the device in late 2010.

For ten cents I love this stock as a risk-reward play. For the cost of a night or two out on the town, as I like to say, you can buy a handful of shares of MSBT.ob and see how Cytosorb progresses.

What I like about the product is that if it does prove to 'clean' a blood supply, there could be a huge market out there for this device, including sports medicine, poisoning, etc. Definitely one to keep an eye on.

At ten cents per share the downside is minimal, but if CytoSorb makes it to market, or even comes close, the percentage gains can be monumental (see: TTNP) with this stock.

Additionally, there are sure to be trading opportunities along the way that will allow investors to buy the dips and sell the spikes, reducing the inherent risk of the investment.

I haven't had enough time to get the feel for management and the Website could use some work in the way of providing an easy way for investors to track the trials, but for ten cents it's hard to find a reason not buy the stock.

Disclosure: VFC has no position in MSBT.ob, although I might soon.

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Digital Angel (DIGA)

About three or four years ago I was a shareholder of ADSX, around the time when chip implants were the 'next big thing.' I sold every share I had (for a loss) when I realized that the company was going nowhere and the technology never caught on like the pundits predicted it would.

There's still a chance that this one could potentially take off in time, but the company is no closer to making it now than it was when I was a shareholder four years ago.

Also, the market for the technology is a 'niche' market- while it has it's place in military and civilian SAR, it's not something that the everyday consumer is going to utilize. We're also not to the point just yet where the everyday American is going to implant 'Fido the dog' with a chip and the livestock angle is another 'nice' market.

There is going to come a day when Digital Angel's technology is going to be huge, I just don't think that day is going to come very soon.

Personally, I think there are a lot better good deals out there that are better risk/reward plays than this one.

That's just my take based on what I've seen from the company as a previous shareholder compared to where it is now.

Disclosure: VFC has no position in DIGA.

Realty Trac

Of these two stocks, I like MSBT.ob and would rate it a BUY based on the fact that ten cents is literally no risk if CytoSorb has even the remotest chance at making it.

I'm not a fan of DIGA.

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1 comment:

  1. I too have been waiting on ADSX/DIGA for years. I still hold it and it is showing signs of turning around. I think this last quarter was the first time it made any money.

    Another one I am holding on to is SVSE. This can be got for less than a penny. I don't know why it isn't doing better unless it is bad management:
    From MSN
    SVSEFinancial highlightsSales* 1.60 Mil
    Income* 4.72 Mil
    Sales Growth* +43.10%
    Income Growth* +55.30%
    Net Profit Margin 295.37%

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