Delcath Systems, Inc. (NASDAQ: DCTH) is having yet another incredible day in the market today. Investors seem to be putting full faith and support in the CEO of the company and his driving effort to turn things around. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (11:09), DCTH is trading at $0.18 per share after a gain of $0.08 per share (80.71%) thus far today.
DCTH Is Having Yet Another Exceptional Day In The Market
Delcath has been running upward in the market for the past several trading sessions, and for good reason. Investors are putting their full support into Jennifer Simpson, the CEO of the company that is striving for excellence.
At the moment, the key for Simpson, and the investors that are backing her, is getting the stock to $1 per share before it is delisted from the NASDAQ. Of course, with the stock trading at $0.18 per share, that’s a tall order. In fact, a reverse split was proposed to investors to push the stock to that direction. However, the company didn’t receive the votes it needed for the split.
Nonetheless, the bulls believe that delisting isn’t going to be an issue. In fact, if you take a look at StockTwits at the moment. You’ll see several bulls saying that the stock will hit $1 by Friday.
So, What’s The Value Proposition Here?
The answer to the question above is a relatively simple one. Ultimately, the value proposition is the company’s proprietary Hepatic Delivery System. Currently, the company is working on a Phase 2 clinical trial evaluating the combination of Melphalan with the Hepatic Delivery System for the treatment of both liver cancer and bile duct cancer. There’s also a Phase 3 clinical trial in which DCTH is investigating Melphalan Hydrochloride for injection for use with the Hepatic Delivery System in patients with Hepatic Dominant Ocular Melanoma.
The True Value Is A Potential Acquisition
At the end of the day, the oncology space is an incredibly competitive one. One where acquisitions happen all the time in order to maintain or increase dominance. Well, DCTH is likely a perfect takeover target. Even after the strong run we’ve seen on the stock as of late, the market cap remains relatively low at just $64 million. That’s pennies in the oncology space, and with multiple clinical trials, there’s no reason that a larger player wouldn’t be willing to put up some change for the company. Of course, doing so quickly would allow the larger player to get a hefty discount!
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on DCTH. In particular, we’ll be following the company closely to see what CEO Jennifer Simpson pulls out of her hat to bring the stock to $1 per share. In the longer term, we’re interested in following the ongoing clinical trials and watching for a takeover offer, as with the value proposition offered here, it’s likely not a matter of if, but a matter of when. Nonetheless, we’ll continue to follow the news closely and bring it to you as it breaks!
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