SeeThruEquity, a leading independent equity resear
Post# of 115
Posted On: 05/11/2015 9:05:03 AM
SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued an update note on OxySure Systems, Inc. (OXYS).
The update note is available here: OXYS Update Note. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will also be available on these platforms. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
OxySure provides short duration / emergency medical oxygen and respiratory solutions for mass market use. Using patented technology that combines two dry, inert powders to create medical oxygen, the company manufactures and markets the OxySure Model 615, a portable emergency oxygen system that has been approved by the FDA for sale over the counter without a prescription.
Large short position in OxySure shares exposed
We have become aware of significant short selling activity in the stock of OxySure Systems over the last several months. According to data compiled by Buyins.net, between November 18, 2014 and April 30, 2015, there were approximately 5.7mn shares sold short in OxySure stock. Considering that the float in OxySure Systems is just 7.65mn of the total 29.6mn shares outstanding, we find this data eye-opening.
Indeed, the data from Buyins.net suggests that nearly 3/4 of the float has been sold short from November 18, 2014, through April 30, 2015. During this time period, short sales activity represented 36% of the total volume of 15.9mn shares traded. If a short position of this magnitude were outstanding in its entirety then it would take more than two months of buying to cover at the current average daily trading volume, which averages less than 100,000 shares per day. We note that the company issued a positive update on May 5, 2015, stating that 2015 will be a "watershed year" for the company.
Further highlights of the note are as follows:
Corporate update highlights progress for OxySure
Meanwhile, on May 5, 2015, OxySure CEO Julian Ross provided a compelling corporate update for the company. Ross highlighted the progress made by OxySure in 2014 and updating investors with progress made during 2015. Importantly, Ross indicated that the company is on track with the hiring and training of new personnel to grow its sales team to include 30 Territory Sales Managers by calendar year-end. Ross also confirmed that OxySure is making progress on the international expansion front, with discussions underway in several areas, including Singapore, Japan, Canada, and South Korea. We see this as an important and necessary step for the company to achieve its growth plan of reaching a revenue run rate of $10mn by the end of 2015.
Growth story continues as demonstrated by 2014 results
OxySure's year-end 2014 results demonstrated continued strong growth, as the company grew its top line for the 10th consecutive quarter. For the year, revenues increased by 35.4% versus 2013, with revenues coming in at $2.4mn versus $1.8mn in 2013. Results were driven by an 83% rise in the United States, as well as a 35% increase in Model 615 replacement cartridge shipments. Model 615 unit shipments increased by 18% YoY. On the bottom line, GAAP EPS came in at a loss of ($0.10) versus our estimate of ($0.05). OxySure ended the year with cash on hand of $647,093.
Maintain price target of $2.30
Our price target remains $2.30 for OXYS at this time. We see OxySure as an intriguing speculative medical device company entering what should be a significant growth year with an innovative product targeting a large potential market.
Please review important disclosures on our website at www.seethruequity.com.
The update note is available here: OXYS Update Note. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will also be available on these platforms. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
OxySure provides short duration / emergency medical oxygen and respiratory solutions for mass market use. Using patented technology that combines two dry, inert powders to create medical oxygen, the company manufactures and markets the OxySure Model 615, a portable emergency oxygen system that has been approved by the FDA for sale over the counter without a prescription.
Large short position in OxySure shares exposed
We have become aware of significant short selling activity in the stock of OxySure Systems over the last several months. According to data compiled by Buyins.net, between November 18, 2014 and April 30, 2015, there were approximately 5.7mn shares sold short in OxySure stock. Considering that the float in OxySure Systems is just 7.65mn of the total 29.6mn shares outstanding, we find this data eye-opening.
Indeed, the data from Buyins.net suggests that nearly 3/4 of the float has been sold short from November 18, 2014, through April 30, 2015. During this time period, short sales activity represented 36% of the total volume of 15.9mn shares traded. If a short position of this magnitude were outstanding in its entirety then it would take more than two months of buying to cover at the current average daily trading volume, which averages less than 100,000 shares per day. We note that the company issued a positive update on May 5, 2015, stating that 2015 will be a "watershed year" for the company.
Further highlights of the note are as follows:
Corporate update highlights progress for OxySure
Meanwhile, on May 5, 2015, OxySure CEO Julian Ross provided a compelling corporate update for the company. Ross highlighted the progress made by OxySure in 2014 and updating investors with progress made during 2015. Importantly, Ross indicated that the company is on track with the hiring and training of new personnel to grow its sales team to include 30 Territory Sales Managers by calendar year-end. Ross also confirmed that OxySure is making progress on the international expansion front, with discussions underway in several areas, including Singapore, Japan, Canada, and South Korea. We see this as an important and necessary step for the company to achieve its growth plan of reaching a revenue run rate of $10mn by the end of 2015.
Growth story continues as demonstrated by 2014 results
OxySure's year-end 2014 results demonstrated continued strong growth, as the company grew its top line for the 10th consecutive quarter. For the year, revenues increased by 35.4% versus 2013, with revenues coming in at $2.4mn versus $1.8mn in 2013. Results were driven by an 83% rise in the United States, as well as a 35% increase in Model 615 replacement cartridge shipments. Model 615 unit shipments increased by 18% YoY. On the bottom line, GAAP EPS came in at a loss of ($0.10) versus our estimate of ($0.05). OxySure ended the year with cash on hand of $647,093.
Maintain price target of $2.30
Our price target remains $2.30 for OXYS at this time. We see OxySure as an intriguing speculative medical device company entering what should be a significant growth year with an innovative product targeting a large potential market.
Please review important disclosures on our website at www.seethruequity.com.
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