If you accept the premise that where there is smoke there is fire, you'll want to check out ChromaVision Medical Systems
Fueling ChromaVision is news of an FDA approval of the company's Automated Cellular Imaging System (ACIS) for use in treating breast cancer, previously performed by manual microscopy. A higher degree of accuracy relative to conventional methods allows doctors to focus on individual treatment and to better predict patient outcomes.
Yet, for all the excitement, ChromaVision remains a tiny operation. Revenues last quarter were just $3.1 million, and as with most startups, cash burn consumed all that and more, producing a net loss of $2.2 million. With 37.5 million shares outstanding, the market capitalization swelled this morning to nearly $150 million.
Clearly, this is a very speculative bet. The company has no debt and a soon-to-be-vaporized $2.3 million in cash; so, if nothing else, the ACIS approval leaves the company much better positioned to raise capital going forward -- without diluting current stockholders. Who, by the way, must be a happy group, indeed.