Return of Ten-Bagger Hunts: BSD Medical (BSDM)
When you see a 100% gain in a medical device or medical systems company, generally it is a takeover. This morning that is not the case at BSD Medical Corporation (NASDAQ: BSDM). But the initial pricing action is showing that BSD Medical Systems is the next low-priced stock that may be trying to exhibit some of the old ten-bagger ambitions for its shares.
The company just announced FDA Marketing clearance to market its MicroThermX Microwave Ablation System (MTX-180) for ablation of soft tissue, giving it the right to sell MTX-180 in the United States. The MTX-180 was designed to provide a higher power, optimized system targeted to the growing therapeutic interventional and surgical oncology market.
The MTX-180 was developed and patented by BSD to deliver targeted microwave energy to destroy soft tissue. The testing data demonstrated that the MTX-180 is a user-friendly system that delivers larger, more uniform ablation zones in shorter periods of time. This is a compact and mobile proprietary system that includes a microwave generator, single-patient-use disposable antennas, and a thermistor-based temperature monitoring system.The device also allows delivery of higher power levels using a single generator. The MTX-180 provides minimally invasive access to the target tissue and can be used in open surgical as well as in percutaneous ablation procedures, which will allow the MTX-180 to be used by both surgeons and interventional radiologists.
Currently, radiofrequency (RF) energy is utilized most frequently in the interventional oncology ablation market. Published studies have demonstrated that the use of microwave energy has numerous advantages over RF energy for the delivery of ablation therapy, including faster set-up, shorter ablation times, larger ablation zones, and higher intratumoral temperatures. For these reasons, interventional oncology key opinion leaders regard microwave as the future of soft tissue ablation therapy. The MTX-180 has been designed to provide optimized microwave ablation therapy.
CE Marking approval for the MTX-180 System is imminent and will allow BSD to initiate a European market launch.
Shares are up 101% at $2.28 on 3.3 million shares (already 30X volume) and the 52-week trading range is $0.86 to $4.77. With a market cap of $56.8 million after the double today, investors and traders are treating this one as the next ten-bagger candidate so far.
Revenues were barely $3.5 million in fiscal 2009 and have been microscopic in each of he last four quarters.
JON C. OGG
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Good news was announced, but what about them financing shares at $2.25 after that crazy run-up? Yikes!