Posted March 09, 2021
By Ray Blanco
Don't Miss the Next 500% Small-Stock Rally
Five days ago, Second Sight Medical Products Inc. (NASDAQ: EYES) existed in relative obscurity.
A tiny microcap with lofty ambitions the company develops an implantable artificial vision prosthetic for blind individuals Second Sights shares traded for less than $2, and its once-promising outlook seemed like ancient history.
Talk about bleak
Filed on Nov. 12, 2020, Second Sights latest earnings report described a company ravaged by the economic slowdown caused by COVID-19. Second Sight recorded no sales through the first three quarters of 2020, compared with sales of $2.9 million during the same period of 2019.
Making the situation even more urgent
Unless the company could raise additional capital, management warned we do not have sufficient funds to support our operations for the next 12 months.
Most folks would avoid owning such a stock.
But in the world of technology and microcaps, fates can change overnight.
On Friday, news broke that Second Sights Argus II Retinal Prosthesis System was approved by the U.S. Food and Drug Administration (FDA) triggering a 547% rally in shares. Over the course of one trading session, Second Sight went from the recycling bin to the darling of Wall Street.
With Second Sights breakthrough in mind, you know our hunt for the next booming technology never ends. Analyst Brittan Gibbons-ONeill continues our relentless hunt below.
Onward and upward,
When Artificial Intelligence Meets Health Care
It should come as no surprise that artificial intelligence, virtual reality and similar cutting-edge technologies are working their way into the fabric of the medical field.
If theres one industry that shouldnt leave much room for human error, its health care.
The companies working on marrying things like AI with medical devices are often startups still looking for funding or microcaps subject to volatile swings.
But the best thing about microcaps, especially in an increasingly tech-driven field, is that it really doesnt take much to send a stock sky-high
This was the case with EYES last week when it received FDA approval for its Retinal Prosthesis System.
I think a similar situation could be setting up with another health care microcap: Biotricity Inc. (OTCBB: BTCY).
Biotricity operates in the cardiology corner of the health care market.
You mightve heard of an EKG or ECG, which looks like this
Source: MediumEach beat is recorded as electrical activity, which is then interpreted to figure out what is happening inside the heart.As with many instances in life, artificial intelligence systems can read these electrical signals faster and more accurately than you or I could.And while human doctors still need to make the final decisions on what to do with this data, AI is able to streamline this process, especially when it comes to the data collected when a patient goes home (theyll wear cardiac event recorders that record the hearts electrical activity, which is then interpreted by physicians at a later date).In order to address this issue, Biotricity created an AI-enabled ECG monitoring system called Bioflux that it submitted to the FDA for approval in February 2020.The system, in addition to incorporating AI, is also able to monitor remotely and in real-time sending data back to physicians in an instant rather than making patients wait until their next appointment.And in August, Biotricity received 510(k) clearance from the FDA for its device. It was the final approval that the company needed in order to bring Bioflux to the market.Biotricity applied for FDA approval for another heart-monitoring device in January. This one is less AI-driven than Bioflux but still fills a tech gap in the cardiology medical space.BTCY has a market cap of only $85 million, so news of the FDA approving a cash-generating product could boost shares very quickly.Last week, the stock reached highs it hadnt seen since August 2018, so interest in this name is clearly building.But it hasnt had the price-popping news quite yet, which makes it still obscure enough for anyone looking to add to a speculative portfolio.And as we saw with EYES, microcaps dont stay stagnant for long, especially those in the Medtech field.Important Note: BTCY is an extremely small stock with high levels of volatility. If you are planning on taking a position in BTCY, exercise caution. As always, never invest any money you arent willing to lose and have an exit strategy going in.Sincerely,Brittan Gibbons-O'Neill