A year ago, Cramer advised his viewers to avoid the stock, which turned out to be a good call, as it has declined around 40 percent since then. In March, Accelerate Diagnostics Inc began its 20 percent rally. Subsequently, Cramer believes that this could be a sign of a recovery.
He still sees it as a speculative stock, but is now willing to take another look because the company issued a very positive pilot study in December. The overall sensitivity for identification was 96.6 percent, while specificity was 99.4 percent. Essential agreement for antibiotic susceptibility testing was 94.3 percent across all drugs. The company initiated a larger trial few months ago and after it receives results it is expected that it is going to apply for the FDA approval. If everything goes well, the product could be in the market in the third quarter of 2016.
Cramer thinks Accelerate Diagnostics Inc could develop a game changing technology and he believes that there should be no comparisons with Theranos, because Accelerate Diagnostics Inc will be going through the FDA approval process, and it is a public company, which would have to explain to SEC any unrealistic claims. Its technology is much faster than currently used equipment and it is also small, so labs can buy multiple units. It has a razor-like business model because it uses a disposable cartridge that can be used only once.
The upside potential for the stock outweighs the downside potential, believes Cramer. He wants to buy it, but for speculative purposes only.
Image Credit:© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
