Is IsoRay (ISR) Going To Finally See The Growth It Deserves?

IsoRay, Inc. (NASDAQ: ISR)

IsoRay is having an incredible day in the market as a follow up to the great week we saw last week. Now the question is, “Is ISR finally seeing the growth it deserves?” Well, of course that’s my opinion, but I do believe that IsoRay deserves to see strong growth. With that said, today we’ll talk about what we saw last week, the changes we’re seeing in short interest, what we’re seeing today, why I believe ISR deserves solid growth, and what we can expect to see moving forward. Tons to talk about… let’s get to it!

What We Saw From IsoRay Last Week

Last week proved to be a strong week for IsoRay. While the stock traded relatively flat for the majority of the week, we did see decent gains toward the end.  These gains brought the stock 5.52% higher for the week – beating out the S&P 500 by 3.37% over the week and 7.36% throughout the past 4 weeks. So, judging by what we saw last week, the stock is doing incredibly well. However, we have to look at more than a single week of movement to decide whether or not ISR is a good stock to take advantage of.

Short Interest May Be Playing A Role In Growth

Short interest is the amount of shares that investors sell short. Essentially, investors short a stock when they believe that the value of the stock is going to see declines. This gives them a way to realize profit during downward trends. So, when short interest is high, the stock is likely to see declines. However, short interest on IsoRay is falling. In fact, ISR saw a decent drop in short interest throughout the month of August. As of August 31st, short interest totaled out to 6,819,043 shares. That’s down 0.8% from 6,873,485 on August 14th. Currently, about 12.5% of shares are short sold which is a bit high but, with short interest declining, good news could be on the horizon.

What We’re Seeing From ISR Today

IsoRay, as mentioned above, is having a strong day in the market today. Trading on incredibly high volume, the stock is currently (11:43) trading at $1.56 per share after an increase of 1.63%.

Why IsoRay Deserves To See Gains

IsoRay is the founder of Cesium-131 – a great radiation treatment for cancer patients and other ailments. However, before we get into that, let’s talk about Adam Feuerstein. Earlier in the year, the analyst condemned IsoRay, spewing harsh words on what I believe to be a very unfounded basis. However, investors listened to him sending the stock down in the market. So, now that you know why ISR is down, here’s why it deserves gains…

If you’ve ever had a friend or family member that went through radiation treatment, you know it’s pretty nasty stuff. One of the worst parts is the months’ long half-life of the radiation. Because the radiation is so strong and lasts so long, family members and friends of the patient find themselves in danger when visiting the patient. However, with Cesium-131, the radioactive half-life is far shorter, lasting days or maybe a week tops! This makes the treatment safer for the patient and their loved ones without compromising effectiveness. All in all, that will lead to sales! There’s no doubt about it!

We, as investors, know that sales lead to profits and profits lead to happy investors. When investors are happy, stock prices increase.  While we’re seeing slight improvements now, I think we’re going to see major gains after ISR releases their next earnings report.

What Do You Think?

Where do you think ISR is headed and why? Let us know in the comments below.


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