|Analyst thinks NewCardio set to rise|
|By Ray Dirks|
|Thursday, 16 December 2010 01:43|
Veteran Research Analyst Ray Dirks has issued a recommendation for the common stock of NewCardio, Inc. (OTCBB:NWCI) at its current market price for very substantial capital appreciation over the near term. Dirks thinks that NewCardio will sell at $2.00 within one year and then at $5.00 or more within two years.
NewCardio is now commercializing its proprietary software product for automated ECG analysis used in cardiac safety clinical trials. This product, which is known as QTinno, converts standard 12-lead ECG data into a virtual three-dimensional image of the heart that offers sensitivity and accuracy superior to traditional manual methods that are now in use.
This process requires no change to existing ECG equipment or clinical practice. NewCardio plans to leverage this 3-D technology over opportunities in ambulatory cardiac monitoring (CardioBip) and cardiac screening and diagnostics (Cardio3KG). NewCardio provides its software and support to established clinical trial service providers and study sponsors on a software as a service (SaaS) basis, which minimizes NewCardio’s infrastructure requirements and supports high software-type gross margins. NewCardio has completed master service agreements (MSAs) with 3 of the 5 largest CROs.
In the third quarter of 2010, NewCardio completed its first revenue-producing clinical trial, and then received an order for a second revenue-generating study. CardioBip and Cardio3KG offer substantially larger long-term market opportunities than QTinno does. The global market opportunity is more than $2 billion in CardioBip monitoring and over $1 billion for Cardio3KG in acute diagnosis of myocardial infarction.
RAY DIRKS Research recommends NewCardio (OTCBB:NWCI) at $0.90
Price Target - -within One year: $2.00
Price Target - - within Two year: $5.00 +
Price Target - - within Three years: $15.00
Revenues: 2010: $500,000 (Estimate)
Revenues: 2011: $4,000,000 (Estimate)
Revenues: 2012: $12,000.000 (Estimate)
Estimated E.P.S.: 2010: Loss of $0.30
Estimated E.P.S.: 2011: Loss of $0.05
Estimated E.P.S.: 2012 $0.40
Shares Outstanding: 30 million
Market Capitalization: $23 million
NewCardio has performed QTinno validation for 8 study sponsors including 2 top-20 pharmaceutical companies. Management is preparing at least 6 studies for publication to support QTinno, CardioBip, and Cardio3KG. We anticipate the announcement of favorable validation data during this current quarter (Q4, 2010) Numerous milestone announcements are likely in 2011 and 2012 including the strong probability of additional industry partners and substantial financing which can handle the exceptional growth opportunities.
Accordingly, we believe that NewCardio common stock has the capability of appreciating by 10 to 20 times over the next few years.
1. High probability of a significant strategic relationship/investment to dramatically enhance companies marketing ability in its core business.
2. Potential strategic partner to execute commercialization of CardioBip.
3. Established commercial relationships for QTinno™ with: GlaxoSmithKline, Quintiles, ICON, Dedicated Phase I
4. Vinnie Renz as CEO – he was formerly executive at E-Research that took the company from $2 to $40 and was instrumental is sale of company.
5. Near term revenues that should increate greatly in first quarter 2011
6. Stock is highly undervalued. They are far along and there is not much risk to commercialization.