Record Setting Revenues Could Push SANUWAVE Health Stock Substantially Higher; Here’s What To Expect (OTC: SNWV)

February 25 08:27 2021

SANUWAVE Health (OTC: SNWV) stock is consolidating ahead of an expected Q4 announcement of record-setting revenues. In fact, the 10-K filing in March is expected to report SNWV having its best year ever regarding revenues, acquisitions, and pipeline enhancement. Further, in what could fuel a rally, investors are expecting bullish guidance for the remainder of 2021, with the company possibly highlighting several assets that can each deliver exponential near and long-term value. Here’s what to expect.

First, an update on its transformative acquisition of UltraMIST in 2020 will likely earn the lion’s share of attention. Already, that asset has led to a record-setting Q3, an increase in analyst revenue projections, and the company’s likelihood to post its best-ever operating results. Prior to the asset being purchased by SNWV, it delivered more than $15 million in revenues and produced $4 million in EBITDA to its former owner. There’s more.

Also, in 2020, SNWV acquired exclusive worldwide rights to WoundShield®. This patch-based therapeutic device facilitates tissue regeneration and wound healing using ultrasound to increase local capillary perfusion and tissue oxygenation. To monetize this asset, SANUWAVE said it is seeking regulatory approval to market WoundShield® in Europe and the United States, with NanoVibronix keeping the sole right to manufacture the licensed products. The deal is a win-win. 

For SANUWAVE, WoundShield® complements its dermaPACE® energy-based wound care treatment system. And beyond the device, the agreement can lead to SNWV tapping further into NanoVibronix’s surface acoustic wave ultrasound technology expertise. NanoVibronix will benefit from leveraging the strength of SANUWAVE’s commercial organization.

Though not widely discussed yet, WoundShield® immediately adds more firepower to a growing and respected energy-based treatment arsenal. The earnings call in March will likely provide more insight into why this deal can take advantage of substantial US and international opportunities. This device has not been calculated into analyst revenue models, which could be a catalyst to revise estimates. 

Still, despite the additions, the 10-K highlight could be that despite massive disruptions to providers and patients created by COVID-19, SNWV still delivered record results. 

Expectations Set Stage For Record-Setting 2021

Thus, investors may be right to position ahead of the coming financials. First, Lake Street Capital may be spot on in its forecast, suggesting all-time high revenues that contribute to an expected 2021 run-rate of at least $25 million. If SNWV guides to that level or higher, it could represent a more than 500% increase in revenues YoY. 

Also, an increase to those levels could push the company close to EBITDA positive results, which would be a meaningful milestone. Further, with its new assets, including licensed products, SNWV can meet heightened demand with its best product-mix in its history. Moreover, the company expects to maintain high gross margins and continue to enjoy increases to its reimbursement allowance for its product portfolio.

Further, in addition to its revenue forecast of at least $25 million this year, Lake Street Capital set a price target at $0.34, representing a roughly 88% increase from its current $0.19 price. Moreover, if SNWV can deliver on that revenue number despite the massive market headwinds faced, investors would be right to respond enthusiastically.

For sure, strong guidance in its commentary would not be a “sell the news” event. Further, studies show that SNWV’s addressable markets are growing. That’s also bullish near and long term.

Market Expansion And Better Treatment Devices

An article published in BioSpace suggests that the global diabetic foot ulcer treatment market was valued at $5 billion (USD) in 2018. But, an expected CAGR of 7.5% from 2019 to 2027 has the market almost doubling to $9.6 billion by 2027. Those estimates, and even the current market, put SNWV in the right market, with the right products, at the right time.

Moreover, SANUWAVE may emerge as the best-in-class front-line treatment provider. Already, revenue growth suggests that its non-contact, quick, and painless treatment alternative is becoming a popular option for caregivers and a favorite for patients. UltraMIST® utilizes low-frequency ultrasound to provide a non-contact wound healing solution. When combined with dermaPACE®, also an energy-based treatment, the two show a unique ability to provide effective therapy to patients with chronic diabetic wounds and eliminate unwanted drug-induced side effects and pain caused by alternative treatment options. That’s a critical factor to consider for treatment providers, patients, and payers. 

In fact, with SNWV announcing in December that its reimbursement coverage rate is increasing, it’s a sign that insurers are willing to pay more for a treatment now compared to a lifetime of redundant treatment with inferior products and devices.

Undoubtedly, investors are looking for confirmation that SANUWAVE’s transformative 2020 acquisitions result in substantial revenue increases with a trajectory toward EBITDA positive results. Moreover, with the company’s enhanced product lineup, combined with its experienced sales and reimbursement team, a reiteration of the company’s goal to reach $100 million in sales by 2024 would add an exclamation point to its 10-K report. 

Now, with less than 30 days until its year-end financials are due, investors may start to again nibble at shares at these undervalued levels. SANUWAVE may very well be an under-the-radar opportunity at this point, but with its growing arsenal of best-in-class treatments, that may not be the case much longer.

 

Disclaimers: Hawk Point Media is responsible for the production and distribution of this content. Hawk Point Media is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by Hawk Point Media is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall Hawk Point Media be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by Hawk Point Media, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Hawk Point Media was compensated by wire transfer to produce research, video, email, newsletters, and editorial commentary for SANUWAVE Health. Please click HERE for full disclosures and additional disclaimers. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. Hawk Point Mediastrongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.

The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.

Media Contact
Company Name: Hawk Point Media
Contact Person: Kenny Feigeles
Email: [email protected]
City: Miami Beach
State: Florida
Country: United States
Website: https://www.greenlightstocks.com

view more articles

About Article Author