Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
 |
Interest In
Diomed (AMEX: DIO) Extremely High as Company Debuts on the AMEX |
|
Diomed hit the market with
a bang last week, trading unprecedented volume and making the jump from
the Bulletin Board to the AMEX in record time. After only three trading
days on the Bulletin Board, Diomed opened on the AMEX last Friday.
The opening trade was $6.95, and the stock saw a high of
$8.60
before the market closed on Monday.
There are many reasons for the unusually
high level of interest in this stock. If you missed our Profile release
please take the time to read it now. Click
Here to read the original profile we published last Friday.
This stock has now traded over 3
million shares since making its debut on February 22nd, which equates to
approximately $24 million worth of stock changing hands in
just six trading days (about $4 million per day).
Several events worth reporting have
transpired since launching the original profile which helps explain the
unprecedented level of interest. For Your Review:
 |
Wall
Street Journal Article on February 22nd Spurs Interest in PDT |
 |
As reported in our original profile,
PDT,
or Photo Dynamic Therapy, is a key component in Diomed's
business model. The FDA has approved the use of Diomed's laser and
fiber in a three part "modality" for treating certain forms of cancer.
The third segment is the drug "Photofrin", which is provided by Axcan
(NASDAQ: AXCA).
Diomed provides both the lasers
and fiber optic used in every treatment. The strand of fiber, which costs
about $550, must be replaced after each treatment.
With unusually prophetic timing the
Wall Street Journal published an article in their health section on February
22nd entitled: "New Treatments for Cancer Act As Smart
Bombs on Malignant Cells". To access the entire article,
simply click
here.
David Hamilton, staff reporter for
the Wall Street Journal, reports on several new and exciting cancer therapies
which are highly effective, but avoid much of the "collateral damage" associated
with the more traditional chemotherapy and radiation treatments.
PDT is mentioned prominently
in the article. Here is an excerpt for your review:
| "Another promising area of
treatment involves so-called photodynamic therapy, or PDT. Some light-sensitive
drugs, many from a chemical class known as the porphyrins, are naturally
drawn into rapidly dividing tumor cells. Laser light of a particular frequency
can trigger a sequence of chemical events involving the drugs in those
cells that kills tumors while leaving most healthy tissue unharmed. Fiber-optic
lines can deliver laser light to internal tumors via endoscope.
While such therapy for cancer
is close to a decade old and has been approved in the U.S. for esophageal
and lung cancers, it is only now attracting wider attention. One reason
is that conservative doctors have been slow to adopt "hybrid" treatments
that involve both drugs and medical devices.
In addition, the first PDT
practitioners hadn't yet worked out ways of delivering exactly the right
"dose" of laser light to tumors, says Kenton Gregory, director of the Oregon
Medical Laser Center in Portland, which is studying the use of PDT to treat
prostate and breast cancer. Once light dosage is optimized, "you have a
beautiful therapy," he says. "Unlike radiation, you can use it over
and over," without damaging the patient."
David P. Hamilton- Wall Street
Journal- February 22, 2002
|
PDT treatment is getting a reputation
for providing excellent results with minimal side effects, and doctors
are just beginning to understand how to use it effectively. As the
use of this treatment grows, so will interest in Diomed, the company
providing the laser and fiber component for four major drug manufacturers
who are developing therapies right now.
|
Equity
Securities Investments Issues Buy Recommendation on Diomed |
|
On Friday, February 22nd, in conjunction
with the opening on the American Stock Exchange, Equity Securities published
a "Long Term Buy" on Diomed with a $10 price target
over
the next 12 months. Click
Here to read the full text of the press release.
Todd Pitcher, Director of Equity
Research for the firm, mentions six key features he likes about the company
in the press release associated with the announcement of coverage. They
are as follows:
-
Significant barriers to entry in the
PDT market which is expected to grow to $2 billion annually by 2005.
-
Business strategy is unique as the company
partners with leading pharmaceutical companies developing PDT applications
and enabling it to leverage its partners' sales, marketing and distribution
resources.
-
Pipeline for growth is strong as there
are a number of drugs in 2nd and 3rd phases of FDA Approval which would
benefit Diomed.
-
Just received approval for EVLT for
treatment of varicose veins. This treatment has more revenue upside for
Diomed in the short term than PDT.
-
The current market for EVLT is at least
$400 million and could be as much as $1 billion annually. The analyst anticipates
Diomed will capture at least 10% of this market, leading to somewhere between
$40 million and $100 million in annual sales.
-
Company has historically demonstrated
its ability to move quickly towards changing market environments.
The research report is 17 pages in length,
and we will are attempting to make it available for our members on the
Internet in the next several days.
|
Conclusion |
|
Despite the absence of a long trading
history in the stock, the chart at the top of the page reveals levels of
support and resistance. As soon the stock began to trade as Diomed,
a $9 price level was attained, which established the high. The stock quickly
found its way into the mid $5 range, but only traded there briefly.
Monday's activity saw the stock climb
up to $8.60. Today the stock took a much welcome breather, briefly pulling
back to the $7 level, the same level it opened at on the AMEX last Friday.
Today's action leads us to believe
there is strong support for the stock near the $7 level, which could end
up being the ideal entry level for short term traders. For investors willing
to hold the stock for the remainder of 2002, we believe the stock should
be accumulated up to $8.50, and any weakness should be viewed as an opportunity
to jump in.
If the projection from Equity Securities
is accurate, investors will enjoy a 37% return from today's level
later this year. In today's market, that return is extraordinary.
More on this company later in the
week.
|
For a free due diligence package
on Diomed Inc call Investor Relations toll free at 1-888-400-0643.
|
Charts Provided Courtesy
Of TradePortal.com
The OTC Journal is
a proud partner of the SwingWire.com
Online Investment Community. A next generation Online Analyst Exchange
providing Members the ability to search, review, track and monitor some
of the Internet's best Online CAs (CyberAnalysts). Members
have the opportunity to potentially achieve higher
returns by viewing top performing portfolios
and receiving real-time alerts from favorite CAs.
SwingWire.com
also has a lucrative incentive model for experienced investors and traders
who consistently outperform the market. Share market ideas with other like-minded
investors, establish a proven track record, provide insightful commentary,
attract followers and ultimately become one of the Internet's highest paid
and most sought after CyberAnalysts!
Click
here to receive your FREE 30-Day Trial Membership with no further obligation.
Sign Up Today!
|
