When I spotted InvestorPlace contributor William White’s report that Avinger (NASDAQ:AVGR) shares were trading with heavy volume on Robinhood, I suspected that AVGR stock would soon start to generate more buzz on social media.
And indeed it did, though I’m certainly not recommending that people should buy a stock just because it’s being talked about it.
Rather, it’s essential that informed investors learn as much as they can about the stock and the company. This is especially true with penny stocks, which the U.S. Securities and Exchange Commission (SEC) typically defines as a stock that trades under $5 per share.
So, does this red-hot, low-priced stock deserve a place in your portfolio? Stay with me as we delve into this fascinating (and, I’ll admit, buzz-worthy) medical-niche runner.
AVGR Stock at a Glance
As William White reported, one website shone the spotlight on AVGR stock in January, even going so far as to assign it the number-one spot on its list of the month’s top penny stock picks.
Not only that, but the website gave the stock a price target of $1. Now, that might not sound like a particularly ambitious price objective. However, keep in mind that the shares were trading at just 44 cents apiece at the end of 2020.
Maybe it was a self-fulfilling prophecy, but soon after that price target was revealed, AVGR stock started moving upwards.
On Jan. 20, the stock even hit a high of $2.43. That was good news for the bulls, but it was also great news for Avinger.
Why? Because soon afterwards, on Jan. 26, the Nasdaq Exchange had reportedly informed Avinger that it had achieved compliance with exchange’s minimum-bid-price rule.
The press release didn’t specifically state this, but the exchange typically requires that stocks maintain a bid price of at least $1. Hopefully, going forward, the bulls can help keep AVGR stock in compliance with Nasdaq’s listing requirements. After all, they were able to get to a new 52-week high on Feb. 18, when it hit $2.67.
Innovative Medical Tech
So, let’s now focus on the company itself. Avinger is a medical device company with one main product, which is known as Tigereye.
Tigereye is described as “the first and only intravascular image-guided, catheter-based system for diagnosis and treatment of Peripheral Artery Disease” or PAD.
Clearly, Avinger is seeking to establish itself as an innovator. And fortunately for patients and stakeholders in AVGR stock, the company recently announced the full commercial launch of its Tigereye image-guided platform.
Now, this event took place in mid-January of 2021. So, the spike in the AVGR stock price was likely not just the result of a website’s recommendation. Instead, it was probably a combination of that and the market’s very reasonable response to an encouraging development.
Moreover, it’s likely that Avinger’s President and CEO, Jeff Soinski, would concur. He stated:
“The limited launch program conducted with 14 physician users affirmed our belief that Tigereye represents an important advance for physicians seeking better solutions on behalf of their CTO [chronic total occlusion] patients, who often present with the most challenging and complex PAD cases.”
Can innovation lead to capital profits? It certainly can — and Avinger is proving it.
The company recently reported its fiscal results for the fourth quarter which ended on Dec. 31, 2020. As they say, the proof is in the pudding.
As it turns out, Avinger posted revenues of $2.7 million for Q4. That represents a sequential increase of 19%, as well as the company’s highest revenue level in three years.
Moreover, Avinger’s quarterly gross margin increased to 36% sequentially. Plus, the company’s image-guided CTO revenues also improved by 38% on a sequential basis.
So, it really is true: Avinger isn’t only an “innovator.” Financially speaking, it’s also a revenue generator. That means good things for AVGR stock.
Of course, it’s great to witness the advancement of Avinger’s technology to help patients.
However, for investors, it’s time to see beyond the buzz and focus on the fundamentals that will drive greater value for AVGR stock. When it comes to this penny stock, it seems like the pieces are there.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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