Soliton Inc [NASDAQ: SOLY]: It has been a good run for SOLY in 2019. It closed yesterday’s trading at $13.31 up 5.94%. This brings it closer to its 52-weeks high of $14. While $14 could offer some level of resistance in the short-term, there are several underlying factors that could push this stock way past this level.
For starters, Soliton Inc. is a devices medical company, a market where patents are crucial to revenue growth. It is on this basis that Soliton revenues are likely to grow stronger in coming quarters. On the 4th of April, it emerged that the company had received a European patent for the Rapid Acoustic Pulse device.
This is a tattoo removal device, and will open up opportunities for Soliton Inc in an industry that is anticipated to be worth $4.8 billion a year, by the year 2023. With this device now having validation in 38 European countries, Soliton has a good chance of dominating the tattoo removal market going forward. This could support the price significantly in the coming quarters.
On top of that, on the 9th of April, Yahoo Finance ran a story that Soliton Inc [SOLY] had completed evaluation for its POC clinical treatment of cellulite. The study was done by two skin experts, Dr. Michael Kaminer at Skincare physicians, and Dr. Elizabeth Tanzi of Laser and Skin care. The aim is to evaluate results at two interval: First at 12 –weeks and at 26-weeks. Once this is successfully completed and goes to market, it could have a huge impact on Soliton’s revenues. That’s because, cellulite treatment is a multi-billion industry, and if Soliton dominates it with efficient technologies, its revenues will likely grow significantly over coming quarters.
In essence, the technical resistance for SOLY to break out past its resistance around $14 could be met in the near term. Looking at market-wide driven growth factors, SOLY could be in a good position, but it is still to early in the game to tell. The company is still losing money, $10.60 million, but it does seems as though the company has invested heavily into research and development for its product.
The company is also supported by the continued positive uptrend of the NASDAQ futures. The NASDAQ and the U.S markets in general continue to record new highs. The NASDAQ closed the day at 7645.75 points up 0.37%. The S&P 500 and the Dow futures are also on a growth path too, both closing yesterday’s trading up 0.38% and 0.59% respectively. This indicates strength in the U.S markets and will likely continue to draw in money, from investors seeking the stability that comes with the U.S economy.
For those of you keeping an eye on SOLY, make sure to keep an eye out for the $14 ish range for resistance it needs to break to potentially make its next upward move.