Skip to main content

Market Overview

Streetsweeper Goes Negative On Second Sight, Says These Risks Are 'Eye-Opening'

Streetsweeper Goes Negative On Second Sight, Says These Risks Are 'Eye-Opening'

Shares of Second Sight Medical Products Inc (NASDAQ: EYES) surged higher on Monday after the company's medical technology was featured in a preview in an upcoming Vice documentary. However, shares tumbled on Wednesday after the company received some negative press in the form of a TheStreetSweeper report.

TheStreetSweeper's Sonya Colberg noted that Second Sight's "15 minutes of fame" won't be sufficient to "change the very real issues" that could reverse the stock's ongoing momentum.

Colberg continued that Second Sight has been "unusually busy" with eight separate press releases since November 24. She added that the while a promotion on Vice's episode is "serendipitous," the "vigorous promotions are not" as the company may be pushing out news releases ahead of a "potentially dilutive " stock offering.

Related Link: EXCLUSIVE: Second Sight Chairman Dishes On Recent Success As Shares Skyrocket

Meanwhile, Colberg pointed out that Second Sight sold only 15 of its Argus II systems in the third quarter at a price tag of around $148,000 each.

"That's not surprising," Colberg explained. "As it turns out, patients can't just get fitted and suddenly see like a 20-year-old. Elderly patients must learn to interpret information from the device in an ordeal so challenging the FDA user manual goes into length describing the potential problems and a long list of possible side effects."

Finally, Colberg stated that Second Sight's stock hasn't "lived up to expectations" and only one Wall Street analyst covers the stock. Amit Dayal of HC Wainwright places an "outlandish" price target of $21 per share and his ratings have generated "terrible" returns, based on Bloomberg data that Colberg cited.

Colberg concluded that Second Sight's stock is "extremely risky" and that it will "plunge to a reasonable valuation of $2.50 per share."

The owners of TheStreetSweeper hold a short position in Second Sight.

Latest Ratings for EYES

Dec 2019Dougherty & Co.Initiates Coverage OnBuy
Mar 2016Rodman & RenshawMaintainsBuy
Jul 2015Rodman & RenshawInitiates Coverage OnBuy

View More Analyst Ratings for EYES
View the Latest Analyst Ratings


Related Articles (EYES)

View Comments and Join the Discussion!

Posted-In: Amit Dayal Argus II HC WainwrightAnalyst Color Short Ideas Analyst Ratings Movers Trading Ideas Best of Benzinga

Latest Ratings

OSPNSidoti & Co.Upgrades39.0
PLTSidoti & Co.Upgrades48.0
LRCXArgus ResearchMaintains725.0
ROSTLoop CapitalMaintains145.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at