Non-Invasive Monitoring Systems Inc. (NIMU)

[investora2z]

The stock has corrected nearly 33% from the 52 week high of $0.40 made in August. Despite this, the recent performance has been good as the stock has appreciated by more than 285% on a ytd basis. There have been some positive voices about the stock. One article on seekingalpha has recommended to buy the stock as the company seems to be reducing its losses over the past few years. It is important to note that the company does not have any meaningful revenues as of now, and it may take some time for the company to get going on that front. The stock has done great, and hence it is vulnerable to correction due to profit booking. Positive opinion about the stock is primarily based on the fact that Dr. Phillip Frost had taken a big stake in the company a few months ago. The average price of the acquisition in April was $0.05. That improved the sentiments dramatically, and investors are expecting good things going forward. Frost's investments have done well recently, and he is known to be an astute investor in the pharmaceuticals / biotech sector. His investment in Biozone Pharmaceuticals (BZNE) has made headlines recently. Biozone owns a high potential drug delivery technology Qusomes. According to the author, taking a position in NIMU could be part of a larger strategy of Dr. Frost, and OPKO Health (OPK) could be interested in the company. NIMU's product could complement and diversify OPKO's business. NIMU's product, which can help diagnose health problems just through external sensors without invasive diagnostic procedures, is believed to have a lot of potential. However, there are associated risks, and conversion of this potential into meaningful revenues may take some time. The recent selling by insiders also cannot be ignored. Meanwhile, the stock has already run up quite a bit over the last few months, effectively factoring a portion of the future positives.