Wednesday, July 15, 2015

Seeking Alpha: Sunshine Heart's Path Is Long, But The Rewards Could Be Enormous

In the multiple times I've written about Sunshine Heart (NASDAQ:SSH), I've tried to emphasize the point that this is a "consenting adults" type of stock - the commercial promise of an effective device therapy that can not only halt the progression of heart failure but hold the line (and maybe improve it) is tremendous, but this is an undercapitalized company that still has to establish that the device works and that they can commercialize it.

Looking at other cardiology device companies, I believe there is at least a credible chance that Sunshine can generate $300 million or more in revenue ten years from now, with a gross margin in the 70%s and an operating margin potentially in the 30%s. Discounted back and adjusted for further funding needs, I continue to believe that $7 to $9 per share is a reasonable valuation range for what could well be a high-risk/high-reward story.

Read the full article here:
Sunshine Heart's Path Is Long, But The Rewards Could Be Enormous

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