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BREAKING- Stereotaxis up 33 Percent- 8-K Filing Might be Catalyst

Shares of Stereotaxis (NASDAQ: STXS) are up 33 percent in early trading. Some traders attribute the rise to an 8-K filed with the SEC late Friday amending credit and security agreements.

As we reported Sunday, Stereotaxis’ 344 percent gain last week was largely in response to FDA approval of its Vdrive Robotic Navigation System. Prior to the announcement, the stock had a 22 percent short interest. A portion of the move is likely attributable to a short squeeze.

There are reasons to believe that the stock may be overextended.

First, the medical device market is not like the pharmaceutical industry. Medical devices, with their high cost, are often slow to catch on and often, they don’t meet investor expectations, especially when those expectations result in a 344 percent buy-in.

Next, the company is making progress decreasing expenses, as laid out in this Seeking Alpha article, but it’s still an unprofitable company.

Finally, the company received notice that its being delisted from NASDAQ in September. The company continues to have headwinds and while the positive news around Vdrive is positive, the approval is only the first step.

Read our continuing coverage of the story here:

Stereotaxis’ 344 Percent Gain Last Week Likely Overdone (STXS)

Why Stereotaxis is up 26 Percent Friday (STXS)

Why Stereotaxis is up 200 Percent Tuesday (STXS)

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Disclosure: At the time of this writing, the author had no position in the company mentioned.

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