Gediminas Jasionis

Vasomedical, Inc. (OTC:VASO) Springs Up

by Gediminas Jasionis April 12, 2010
VASO_chart.png
Vasomedical, Inc. (OTC:VASO, VASO message board) share price tripled on Friday but ended up trading flat for the remaining day, showing no signs of further changes.

The stock was trading flat since the beginning of the year and depicted low liquidity. The tripling in price came in after the company got the FDA clearance for marketing of their Vasomedical-BIOX system. Vast percentage price improvement is only a result of the company's stock trading below the $1 per share.

The addition of another blood pressure and EKG monitoring devices however serves no promises. The company already has a line of similar products and their business is still failing to reach profitability. Though the technology was described as unique, the benefits of seeing simultaneous EKG and blood pressure data is not ground breaking, as the same results can be achieved with the use of two separate devices.

VASO_logo.jpgThe stock price behavior corresponds to the idea that fixed value has been added to the company's product portfolio but it doesn't guarantee future growth. Vasomedical's financial position is not too strong:

• Deteriorating cash reserves
• Questionable top line direction
• Bottom line negative for the last three years

Good thing is they still avoid stock dilution. The cash and receivables should be enough for them to last another three quarters, but additional funds will be required afterwards.

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