Hot Penny Stocks – Hansen Medical, Inc. (HNSN)

This is historically a big week for the market. In happier times November itself is generally a strong month. And while the month as a whole has been weak, these last few days have been really strong!

Improved sales during Black Friday have given the Dow and S&P a boost. On Friday the Dow closed at 11,231. Yesterday we closed a smidge over 12,000!  Crazy, right?!

Hopefully you got your fill of deals on Black Friday and Cyber Monday. But if you’re still looking to buy on the cheap you might want to keep this next stock on your radar.

 

QUICK FACTS

Ticker                                      HNSN

Industry                                   Medical Appliances & Equipment

Recent Price                          $2.38

Market Cap                             $129.1 m

Shares Outstanding               55.2 m

Average Volume                     566,300

Dividend Yield                         N/A

Website                                  http://www.hansenmedical.com/

 

COMPANY DESCRIPTION

Hansen Medical (HNSN) designs, manufactures and markets cutting edge robotic tools for implanting and manipulating catheters. These are the tools and catheters used for those minimal incision operations. Their devices are designed to be safe, noninvasive and accurate.

Their flagship product is called the Sensei X System and for good reason. It sounds like the master of all catheter tools. It has 3D imaging, pinpoint controls, and tactile feedback. The technology is so sensitive it can measure pressure being applied to fragile heart tissue.

In the U.S. Hansen has a dedicated regional sales force. In Europe the company utilizes distributors as well as a regional sales force.

 

FINANCIALS

Hansen Medical’s third quarter numbers were released on November 7, 2011.

The company reported revenue of $5.4 million in the third quarter, up from last year’s third quarter revenue of $3.5 million. This is an increase of 54.3%.  HNSN also reported a net loss of $10.1 million… an improvement year-over-year from a loss of $12.1 million.

As of September 30, 2011, the company reported $2.8 million in cash and long-term debt of $3.6 million.

 

KEY METRICS ANALYSIS

Trailing P/E                                        N/A

Price / Sales                                      6.6 x

Return on Assets                             -44.3%

Insider ownership                              13.5%

Short Ratio                                        14.6 x

Current Ratio                                     2.2 x

Total Debt To Equity                          12 x

 

RECENT EVENTS

Hansen’s more advanced model, the Magellan, has been making the conference rounds. In November it appeared at the 38th annual VEITH symposium. The vascular surgeon’s conference is an important showroom for this new device.

Bruce Barclay, Hansen’s CEO, sang its praises in a corresponding press release. The new model has improved flexibility, distal trip control, and an added sheath. The device is already approved and available in Europe. In the U.S. the FDA is still performing a 510(k).

The 510(k) is a standard in-depth engineering analysis necessary to receive regulatory approval.

 

MANAGEMENT TEAM

Bruce J Barclay – CEO

Arthur S. Hsieh, J.D., Ph.D. – VP of Legal Affairs

Peter J. Mariani – CFO

Michael T. MacKinnon – VP U.S. Commercial Operations

 

STOCK ANALYSIS

 

 

 

 

 

 

Chart Courtesy of StockCharts.com

 

HNSN’s 52-week low was $1.24 and the 52-week high was $5.28.  Right now the stock is trading at $2.38.  The 50-day moving average is near $2.72 a share and the 200-day moving average is at $3.27.  The company has a market cap of $129 million and 55.2 million shares outstanding.

 

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