EnteroMedics Inc (NASDAQ: ETRM)
EnteroMedics is having an incredibly strong day in the market today, and for good reason. The company announced that it would be bringing a new CFO on board very soon. Today, we’ll talk about the news, what we saw from the stock as a result, and what we can expect to see from ETRM ahead. So, let’s get right to it…
Trade smarter and make more money with Tradespoon!
ETRM Gains On CFO Announcement
As mentioned above, EnteroMedics is having an incredibly strong day in the market today after announcing the appointment of a new CFO. Early this morning, the company announced that they have made the decision to appoint Scott Youngstrom as the Chief Financial Officer as well as the Chief Compliance Officer. According to the announcement, the change will become effective on October 3rd of 2016. As previously announced, Greg Lea, the current holder of both of these positions has decided to retire effective October 3rd. In a statement, Dan Gladney, CEO at ETRM, had the following to offer:
“It is a privilege to welcome Scott as Chief Financial Officer and Chief Compliance Officer at this very exciting juncture here at EnteroMedics… He is a highly accomplished executive with a strong background in financial and operational leadership within the medical device industry. His experience will be invaluable as we continue forward with efforts to secure broad reimbursement coverage for the vBloc Therapy system, which will help ensure that this highly effective, proven therapy is as widely available as possible to patients in need. On behalf of everyone at EnteroMedics, I would like to thank Mr. Lea for his years of dedication and tireless effort in helping to bring vBloc to the market, and we wish him well in all of his future endeavors.”
Who Is Scott Youngstrom
When choosing their new CFO and CCO, ETRM definitely didn’t simply pick a name out of the hat. In fact, Mr. Youngstrom has built an incredible name for himself within the industry. Today, Youngstrom brings more than 25 years of strategic financial and operational experience to the table. To give you a brief rundown of his experience, Scott previously worked as the Chief Financial Officer and Vice President of Finance at Galil Medical. Before that, he served as Vice President, COO, and CFO at DGI Med Ortho, Inc. Before that, he served as the CFO and Vice President of Finance at Anulex Technologies, Enpath Medical, Compex Technologies, Acist Medical Systems, and Cardiotronics. The list really does go on and on. Now, Mr. Youngstrom is bringing this experience and dedication to ETRM. In a recent statement, Youngstrom had the following to say about his appointment as CFO and CCO:
“vBloc Therapy has consistently set itself apart as a safe and effective treatment for patients with morbid obesity, with the potential to serve as a key component within the obesity treatment paradigm… I look forward to joining EnteroMedics at such an important time and to helping the company realize its full potential and achieve the goal of maximizing shareholder value.”
How The Market Reacted To The News
As investors, one of the first things that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. So naturally, we’re seeing a positive result in the market. Currently (11:21), ETRM is trading at $0.14 per share after a gain of 2.15% thus far today.
What We Can Expect To See Moving Forward
Don’t waste your time! Click here to find winning trades in minutes!
Moving forward, I have a relatively bullish opinion of what we can expect to see from ETRM. While the company definitely has some hurdles to make its way over, vBloc is looking more and more promising. Now, with Youngstrom coming on board, management is strengthening, and there’s more to be excited about in my opinion.