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ETRM +50% Today On VBLOC News!

|Includes: ReShape Lifesciences Inc. (RSLS)

Our shares of ETRM, selected as a recommendation in our "Cheap Stocks Letter" on October 23rd, are rallying sharply on news that their VBLOC obesity treatment, following an 18-month study, is both safe and effective:

EnteroMedics announces 18 month ReCharge study results; VBLOC therapy continues to demonstrate durable and safe weight loss (ETRM) : Co announced 18 month efficacy and safety results from its 5 year ReCharge Pivotal Trial of VBLOC vagal blocking therapy for the treatment of obesity. Patients in the VBLOC group (n=117), achieved excess weight loss (NYSEARCA:EWL) of 25%, or 10% total body weight loss (NYSE:TBL), compared to 12% EWL, or 4% TBL for sham control group patients (n=42). The 13% difference in EWL demonstrated statistical superiority over sham control (p < 0.001).

In total, 54% of patients in the VBLOC group achieved at least 20% EWL and 41% achieved at least 25% EWL, compared to 26% and 17%, respectively, for the sham control group at the 18-month interval. Significantly, approximately 78% of the patients who reported for their 18-month visit remained under the clinical trial's randomized blind. The rate of device-related serious adverse events at 18 months was 4.3% for the VBLOC group, meaningfully lower than the 12 month threshold of 15% (p < 0.0001). The safety results continued to confirm VBLOC Therapy had no adverse cardiovascular effects. Overall, a reduction in blood pressure and heart rate was observed.

[source: Briefing.com]

The chart below shows a bullish pattern breakout which targets the $2.50 area. Analyst target is $3.00.

Disclosure: I am long ETRM.

Additional disclosure: We also hold a position in ETRM in "The 8:18 Fund".