Friday, February 18, 2011

Readers Respond: Cytosorbents, Price Target, Insider Holdings

"Readers Respond" is a forum where VFC interacts with the readers of VFC's Stock House.  Readers can leave comments on posted material at either of the blog sites, through Seeking Alpha or via email,  All stock opinions, tips and questions are welcomed, whether agreeable with VFC's opinions or not.  Thanks for the comments, because without interaction - this wouldn't be fun.

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A comment from Fransisco in response to my most recent post regarding Cytosorbents:

Hey Vinny,

Where do you see the share price of ctso heading upon trial completion and no negative news? Do you still see the price around $1?



VFC's Take:  There's a few more shares out there than when I initially called for a price spike to over a dollar on positive trial results, but I still think that there's a good chance that CTSO could become an instant four or five bagger on the news, bringing the price close to a buck.

Realistically speaking, I think we'll see at least fifty to seventy five cents, with the potential to move even higher once/if an approval in Europe is announced.

That said, because there is not effective treatment for sepsis currently on the market, positive trial results could draw significant interest which certainly could push the share price to over a dollar in a short period of time.

Another consideration, however, is that the company needs to raise cash soon, so I'm assuming that dilution will be in the works shortly after any spike in price occurs.

Long term, if CytoSorb works, then CTSO should become an easy ten bagger from these prices as the European commercial launch gains steam and the company files for approval with the US FDA.

Another comment from the same article:

Hi Vinny,

Regarding CTSO, ive talked about it a couple of times, but i was wondering, this looks good and everything but why hasn't management bought any shares?

Much appreciated

VFC's Take:  I can't answer that question.  It's generally a good sign when management is willing to pick up shares on the open market, and there are a few insiders holding shares and/or warrants and preferred stock, but I cannot attest as to why they are not purchasing at this time.

Some may consider the lack of recent buying as a sign that management is not too confident about trial success, but I'm not putting too much weight into the lack of buys.

Disclosure:  Long CTSO.

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