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(EstateNewsWire.com, April 10, 2013 ) New York, NY -- FluoroPharma Medical (OTCBB: FPMI) has recently seen a modest uptick in trading volume as some first look data from ongoing Phase II trials indicated that the company's positron emission tomography (PET) technology may already be proving superior to the current market standards.
VFC's Stock House identifies FluoroPharma as a company whose stock may be positioned for a speculative rally. A full version of this report is available at: http://VFCsStockHouse.com
Aside from a brief push towards the dollar mark during the opening days of the new year, shares have traded relatively un-moved and under the radar, even as February and March brought in enough trading volume to indicate that investors may be starting to take notice that FluoroPharma - with a pipeline of imaging agents that are potentially superior to what's already out there now - may be positioned to capitalize on shifting trends in the healthcare industry. With that in mind, it could be safe to assume that the modest - but still noticeable - jump in volume over the past couple of months could be an indication that accumulation is under way in anticipation of some milestone catalysts that are expected to unfold over the course of the year. By comparison, shares of SanuWave Health (OTCBB: SNWV) traded in similar fashion, too, before that company's stock proved to be a 'volume before price' play and shares doubled in just a short period of time.
While assuming the inherent risks of the sector, and also understanding the potential of FluoroPharma's PET technology to infiltrate a shifting market trend, there is reason to believe that FPMI could also be positioned to trade higher leading into the upcoming trial catalysts. Furthermore, should those catalysts - largely based around interim and actual Phase II results - look positive, then there is reason to believe that shares could approach the price target set by Zacks not too long ago - a target that is roughly three times the current levels. Initial indications support the Zacks target, as the noted early trial returns hint that FPMI's PET technology is superior to the current market standards.
From that technology, FluoroPharma has developed a pipeline positron emission tomography (PET) imaging agents for the efficient detection and assessment of various forms of coronary artery disease (CAD) and certain types of cancer. Both of its front-line products, CardioPET and BFPET, are currently engaged in Phase II trials as imaging agents for CAD and ischemic and infarcted tissue within the myocardium in chronic CAD patients, respectively. Encouragingly, both have also already returned evidence of superior performance to the current standards, a key factor in speculating as to why shares look to have been under accumulation earlier in the year.
Results from these trials are expected to start leaking out as soon as during the second half of 2013, positioning FluoroPharma to become a potential short term catalyst play, as well as a longer term growth story in anticipation of eventual regulatory approvals.
Industry trends also position this company for success, assuming approvals. Ballooning costs in the global healthcare industry have led to a dramatic shift towards early detection and prevention, rather than just treatment. Treatment has been the 'money' place to be over the years because treating patients continuously brings in a whole lot more money than curing them would, but governments and insurance companies around the globe have finally had enough of it and the move towards prevention and early detection is well underway.
Along with these noted shifts comes the search for more streamlined and cost-effective methods of detection, and FluoroPharma's PET technology - offering more clear, concise and definitive images than the current standards - fits right into that trend, too. Another variable that has arisen from these shifts is that PET imaging agents, routinely used for the detection and identification of cancers, are more being used in the identification and assessment of CAD. PET for use in that purpose is expected to grow into a billion dollar industry within just a couple of years, another reason why timing has FluoroPharma positioned to capitalized.
The market may continue to grow. Heart disease, like diabetes, is growing at an alarming rate on a global scale and remains the number one killer in the United States. Most of those with the disease either have - or will see their condition evolve into - CAD. Assuming the current trends continue, PED identification of such conditions could grow into a multi-billion dollar business. On the other hand, though, preventative medicine - which includes dieting and exercise - could catch up and slow the alarming growth rate of heart disease - but that would assume people are willing to get up off the couch and lay off the fast food for a while.
Although all developmental companies require financing at points during their developmental phases, the most recent quarterly and full year reports indicate that FluoroPharma has managed to keep their expenses under control and at respectable and sustainable levels. Responsible management of finances is a key factor when investors gauge a speculative investment moving forward and FluoroPharma has thus far proven responsible enough. Investors should always bear in mind that price fluctuations and dilutive financing are a name of the developmental game in this sector and the potential is always there for such an announcement to stall rallies, but those that emphasize a strategy of utilizing some trading shares while also potentially building a base of core shares for the long term can somewhat alleviate those risks by banking profits at opportune points in time before buying again on the dips and recycling the strategy.
For those looking to play the upcoming catalysts, the coming quarters will be key. Solid follow-on data will now be somewhat expected after the initial salvos of quality trial returns, and if those trends continue into latter-stage results, then investors may begin to come on board with growing conviction. Given that trading volume has already been on the increase over the past couple of months, indications are that some may be positioning now to play the results expected during the second half of the year, which sets this stock up as a potential 'volume before price' play.
Another angle to consider is that profit-takers are starting to leave the broad markets after an early-year record-setting rally, which means money that was designated to the more stable, large cap stocks, could start flowing into the short term catalyst plays during the coming months. In times of broad pullbacks and volatility, big money often looks for individual stocks and stories that can pay short term dividends. Many of those such catalyst plays lie in the developmental healthcare sector, another reason to start taking a deeper look at the more speculative plays such as FluoroPharma. The key is to look to already have a position in a stock before a rally materializes, which is why some investors play the 'volume before price' game.
As always, the potential for great rewards comes with great risks, too, so investors must weigh the odds, conduct his or her own DD and invest accordingly.
Positive trial results this year, though, could put FluoroPharma on the map.
Happy Trading!!!
Disclosure: Long FMPI, SNWV.
Follow the developments of FPMI, SNWV and other small cap stocks at VFCsStockHouse.com
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About VFCsStockHouse.com: VFC's Stock House is an information and research outlet that brings new ideas to the table and opens discussions for a broad spectrum of investors, with a strong focus on - but not limited to - biotech stocks, small cap stocks and developmental companies of the healthcare sector. VFC's Stock House provides individual company profiles, write-ups and reports as well as giving general insights into broader-market news through various 'Stock Watch' lists. The information contained within the words of VFC’s Stock House are not intended to be taken as advice, but as a starting point where investors can follow up with their own DD and devise their own entry and exit strategies.
For full disclaimer visit: http://vfcsstockhouse.com
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