Wound Healing- A $22 Billion Global Market

I've been focusing a lot on biotech of late as it continues to be a very hot market. Early this week all the major Pharma stocks traded up when investors came away from an Oncology Meeting with the feeling new and more effective cancer therapies are just around the corner. One of the major pharmas is getting eye opening results with a new therapy for Melanoma- analysts are talking about a possible true "cure", which would be a major breakthrough.

All the biotech situations I've presented are developing very interesting therapies and have huge upside potential over time.

And, as I've pointed out- you don't have to wait for an FDA Approval to make money. Events happen along the way that get these stocks trading. When they go, they usually go very big.

Today's idea is SanuWave Health (SNWV)- a medical device manufacturer with one FDA Approval already, one International Approval, and their most exciting product in Stage III clincal trials.

This one is tied directly to the epidemic in the US of Type II diabetes- a huge problem that requires solutions literally worth billions.

SanuWave Health (SNWV): Helping the Body With Acoustic Shock Waves

SNWV has a totally unique approach to wound healing- it's not a pill or ointment- it's not surgery.

Their devices produces an acoustic shock wave to a wounded area. When applied, this therapy helps the body use it's own mechanisms to heal more rapidly. The blood flow to the wounded area increases very dramatically. It enhances and speeds up the healing process.

The device you see here is the company's first generation product- this is the OssoTron- the first and only Extracorporeal Shock Wave Technology (ESWT) system approved by the U.S. Food and Drug Administration (FDA) for the treatment of multiple orthopedic conditions which have failed to respond to conservative treatment.

Acoustic Shock Waves are applied to a chronic wound, and it simply heals faster and better. It's proven out in FDA clinical trials.

The company's new product- the DermaPace- is the one the market is very excited about.

This one is now officially in Phase III clinical trials for the treatment of Diabetic Foot Ulcers- a virtual plague in the US.

Worldwide the numbers are exploding as there are 366 million people living with diabetes and it's expected to reach 552 million by 2030.

Diabetic foot ulcers are a very common problem, and they almost always result in infection.

The OssoTron is a non-invasive device that will allow the body to heal itself far faster and more efficiently.

SanuWave (SNWV): Your Upside

There are any number of pending events that could put a charge into this stock. Results from clinical trials, a transaction with a major name in the industry- sales of their existing products.

Here's why I'm presenting the idea today- technically, I believe this stock is poised to start heading up. The chart is absolutely perfect- a classic Fibonacci Retracement.

This chart presents investors with an absolutely text book perfect Fibonacci 61.8% retracement. $.7657 is the perfect place to own this stock- you can see it circled in the chart.

SNWV was a $.20 stock back in early March, and made it all the way up to $1.60 before starting a corrective phase.

Profit taking has pushed the stock back to, and it has given up 61.8% of its gain- a number that continuously occurs in nature and was discovered by 12th Century Italian mathemetician Leonardo Fibonacci.

Odds are very strong the next move for this stock will be higher. In fact, a measured move equal to the last one.

$.20 to $1.60 is $1.40. $.77 and $1.40 equals $2.17. $2.17 is your technical upside the next time this stock gets moving, which could be shortly after you finish reading today's edition.

82,000 people in the US have amputations every year due to Diabetes. SNWV has a technology that can prevent many of them once commercially available.