Sunshine Heart, Inc. (NASDAQ:SSH) Is Executing Its Revenue Growth Strategy

Sunshine Heart, Inc. (NASDAQ:SSH)

Sunshine Heart, Inc. (NASDAQ:SSH) purchased the Aquadex FlexFlow system from Baxter International (NYSE:BAX) in August of 2016. Today Sunshine Heart announced its progress in executing its growth strategy. SSH shares felt the effects of the announcement by gapping up on the open to a price of $3.03 from its previous close of $2.23. Volumes have been heavy. Over eight million shares have traded less than 90 minutes into Thursday’s trading. The listed average daily trading volume is just over 519,000.

A cardiac surgeon founded Eden Prarie, MN-based Sunshine Heart, Inc. (NASDAQ:SSH). Sunshine Heart is a medical device company that creates, develops, and commercializes a technologies that address heart failure. The EU regulatory authorities have granted a CE Mark to their C-Pulse Heart Assist System. In the USA, the system is undergoing clinical studies to determine its safety and efficacy for the treatment of moderate to severe heart failure.

The news that sent shares of Sunshine Heart, Inc. (NASDAQ:SSH) rocketing was in regards to their commercial progress involving their Aquadex FlexFlow system which is used in aquapheresis therapy. The therapy uses a simplified approach to ultrafiltration for the removal of salt and water in patients experiencing fluid overload – Hypervolemia. Hypervolemia can be caused by congestive heart failure, impaired renal function, pulmonary edema, and other vital organ issues. Those patients that have failed a normal course of treatment involving diuretic therapy are the target market for the Aquadex FlexFlow technology.

Sunshine Heart, Inc. (NASDAQ:SSH) had a revenue growth strategy for the Aquadex technology. The company had a goal of increasing the utilization of the technology for their top 55 hospital accounts which made up 80% of the business. The company has announced that its strategy has succeeded. By the end of 2016 Sunshine Heart, Inc. (NASDAQ:SSH) has re-engaged with 95 hospital accounts. By March that number had increased to 115. John Erb, Chairman of the Board and CEO, commented that their growth strategy momentum has been on the increase as the company has reached out to hospital accounts that had been dormant over the years.

Sunshine Heart, Inc. (NASDAQ:SSH) is a nano-cap company with a market cap of under $5 million. However it has had impressive share performance. YTD SSH shares are up over 537% and are up over 125% for the year. However in the past month that performance has been less stellar. For the past month SSH shares are down over 54% and down over 37% for the past week.

3/23/2017
Ticker Symbol SSH
Last Price a/o 11:46 AM EST  $                      2.43
Average Volume                    522,000
Market Cap (mlns)  $                      3.86
Sales (mlns) $1.30
Shares Outstanding (mlns) 1.73
Share Float (mlns) 1.63
Shortable Yes
Optionable Yes
Inside Ownership 1.20%
Short Float 9.06%
Short Interest Ratio 0.28
Quarterly Return 418.60%
YTD Return 537.14%
Year Return 125.25%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance.

Author: James Marion

James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Leave a Reply

Your email address will not be published. Required fields are marked *