Enteromedics Inc (ETRM)

[Jonas3]

My analysis of the financials:

Most operating costs, research, etc costs have remained relatively consistent so the loss there was expected. This should not negatively affect the pps IMO.

What I do like is that the units sold produce a gross profit when sold. Some companies like this start having their first sales and the cost is more than their selling it for.

The value here is that you would expect to see the gross profit increase every quarter for the foreseeable future based on increased exposure and sales.

Realistically, I think the pps is far too low and even with the dilution probably should be around $1-$2 based on it's strong potential for growth. However, this has been trading like a POS recently and I wouldn't expect to see it go that high.