Post close on Friday, Dermisonics was out with news of a second potential application for their revolutionary new uses for portable ultrasound.
Dermisonics is about to begin its first clinical trials for a new use of Ultrasound. This product has the potential to allow 145 drugs to be administed transdermally- through the skin instead of through a needle. Their initial focus is the transdermal delivery of insulin for Type II Diabetes.
Friday, after the market closed, DMSI announced it was developing another application using its expertise in ultrasound.
According to the release, the portable device will cause wound sites to more readily accept antibotics in order to protect from infection. Click Here to read the press release.
The new product, known as the A-Wand (TM) is an advanced, proprietary ultrasonic handheld instrument designed to have multiple uses for consumers, the medical industry, EMS first responders, emergency room personnel and the military, and others. It is designed for the greatly improved application of antiseptic solutions to cuts, abrasions and wounds.
I first published on this company last weekend. It was trading at about $1, and still remains pretty close to that level.
Dermisonics has been in an uptrend which began in early November. Not only has there been price appreciation, but volume has been steadily increasing as you can tell from the vertical bars along the bottom.
Of particular note is the increase in volume. From a virtual stand still, this stock has begun to trade 100,00 shares everyday on average, and more some days.
The company is starting to garner some recognition. More applications are coming for their unique ultrasound technology. It might take a little more time, but early technical indicators look positive for a breakout move.
I bought 6,000 shares of DMSI at $1.02 perin early Nov. I kept noticing press releases re DMSI’s approval for further testing / advancement staging of their products. Monday 11/21 at 11:00 EST they are holding a live web telecast in NYC re the stages and future of their newly recognised products. I am anxioius to see the outcome in the share prices following the Webcast. Wish me luck!!
Editor: So far a non-event as far as the price goes for you. I would caution you to expect a short term return in this stock. It could happen, but I don’t believe an investment in this stock is for traders. Phase I results could get the stock moving. Market environment improvements could get it moving. However, the biggest potential for a move up in the short term relates to one application I haven’t covered- the cosmetic industry. Stand by for an interesting development in that arena. If you were only looking for a trade, this might not be the stock for you. If you are longer term, set you mental stop loss wherever you are comfortable, and just hang in there.
Reading the quarterly report with its payments in default notices I come to conclusion that stock price must be at least half of actually beeing traded also recognizing that last year’s dilution was more than 50% and continuing as well.
Editor: I don’t disagree with what you are saying on paper. However, in a bio tech device company, there is a lot of intangible value relative to their technology. The trick is to stay in there long enough for the market to recognize it. Dilution will continue so long as they have to roll with product development. It’s a risk, and you might be able to buy the stock for 1/2 price down the road.
What is the breakdown of the 40 million shares? What is the float?
Editor: I’m not sure- I know they have 40 million I&O and a $1.5 million convertible note which converts under favorable terms to shareholders. The next time I talk to someone from the company, I will find out. You can go and plow back through the last 10k to try to find the information if you need it immediately.
I have been following DMSI for some months now. There has been accumulation going on for more than 5 months now, and still there’s no significant move in stock price. Does any one know how instutional holdings have changed in this period of time ?
Editor: I am informed anecdotally that there has been some buying coming out of Europe, but I can’t verify it one way or another.
I noticed DMSI is now DMSIE in my Schwab account. Any news on why?
Editor: They must have required an extension on the filing of their financial. They have returned to the original symbol already.
i bought 1000 shares of Dermisonics thru E-trade, ticker symbol DMSI; last week the 1000 shares disappeared when DMSI was changed to DMSIE, yet no such symbol seems to exist. what’s the story?
Editor: Companies get the “E” assigned to their symbol when they are delinquent in their financial filings. DMSI was delinquent for a few days, but has now returned to its normal symbol as they have fixed the problem.
What happened to DMSI today, Friday, 27JAN06. Big drop in the stock price (-$.15). I was not able to find any news today. Thanks.
Editor: The company is trying to get a financing done, and perhaps investors are losing patience. If I were you, I would sell it and get out if a possible further drop would upset you. Move on. This one might not be for you.
Might be a good buying opportunity though. I put a bid in at .60 but just missed it.
Editor: Yes, it might be. However, the company really needs to raise money, and there has been no news they have been able to do so. If it doesn’t happen very soon, I may drop this one and suggest everyone take their loss and move on.
Watching the frankfurt traded stock and the american traded stock, it seems the american stock finally lost some ground to now be even with the frankfurt counterpart. Such heavy volume on friday though. I sold 4800 at .77 and picked back up almost 5k at .77 Don’t worry folks, it will rebound shortly……
Editor: I hope you are right.
sorry about the last post, was a sell at .77 and a buy at .74. since then I sold at .57 for a hefty loss, but had a limit order in to buy at .52 to build up shares. I cancelled that purchase this morning right before open because of the patent issue. I researched all 4 of the patents involved today, and there are similarities between DMSI’s and SONT’s, but the main differences is that DMSI uses a alternating frequency, DMSI’s product is a personal/portable device, and DMSI’s is a product that is used continuously with a patch. SONT’s ultrasound device was intended to be used for a duration of @ 30 minutes and then a patch would be applied, and maybe have to repeat those steps until the drug has been administered. SONT’s device also was primarily to enter the outer layer of the skin. DMSI’s device is designed to primarily enlarge the hair and sweat pores so large molecule drugs can be easily administered through them. Good news for DMSI fans, I don’t think SONT has much of a leg to stand on when it comes to patent infringement accusations!! Let’s hope DMSI issues a statement soon though, or they will be finding it difficult to get the financing they need.
Editor: Thanks for the contribution. While it would appear based on your research that the potential suit has no merit, nevertheless it is a major negative on the funding. If for no other reason than how poorly the stock is trading. If the company were well financed I might look at this event as more of a buying opportunity. They could still raise money, but on what terms now? It might change the whole upside profile in the technical side. Unfortunate, but better to be out of this one.
Investing in small cap companies is like candy to large dollar holders. Even if it takes a loss, that’s a write-off for most. But the upside is still there, and not cut in half with SONT. Every single reason for investment is still there, and maybe even more attractive now that the stock is near it’s lowest ever. The reports on the skin trial will be analyzed in mar/apr timeframe, and they will be announcing it at the National Diabetes Convention in apr or may…..I can’t remember which month it’s in (sorry). That gives them a lot of time to set things right!
Editor: No doubt. Love the technology. I am big believer in a bubble in diabetes related stocks on the horizon. However, their lack of capital is very troubling.
Here’s a question, if they don’t get the funding, won’t someone try to buy their rights? I know the medical community won’t let this thing just die out.
Editor: I am sure they probably will be able to raise some more money, but on what terms in light of what has happened, and will those terms leave any upside in the stock?