ETRM +50% Today On VBLOC News!

Dec. 03, 2013 1:55 PM ETRSLS
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Long/Short Equity, Growth, Momentum, Value

Contributor Since 2013

Dr. Thomas K. Carr (aka “Dr Stoxx”) is the Founder of (formerly “Befriend the Trend Trading”). He holds M.Phil. and D.Phil. degrees from the University of Oxford. For 16 years he was a tenured professor and department chair. He currently is a fulltime trader, market analyst, trading systems developer, and trainer of traders. His management company, Kingdom Capital (est. 2012), manages “The 8:18 Fund”. Dr. Carr is author of two bestselling trading books: "Trend Trading for a Living" (McGraw-Hill, 2007) and "Micro-Trend Trading for Daily Income" (McGraw-Hill, 2010). They have been translated into Chinese, Japanese and Korean. His new book, "Market-Neutral Trading", was just published. Dr. Carr’s insights into the markets have been published in "The Wall Street Journal", "US News and World Report", "Investors Business Daily", and "Technical Analysis of Stocks and Commodities".

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 (EWL) of 25%, or 10% total body weight loss (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.


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".

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