Warrant Watchlist 4/2/19

Can you see it now? Better or worse?

I was working with my brother-in-law installing satellite dishes during the summer. To get the dish aligned, one person is on the roof moving it while the other is watching the TV set.

A totally grey picture suddenly shows some outlines of people on a TV program, that’s “better”. And then eventually the picture comes into focus.

Earlier in March Endra Life Sciences (NDRA, NDRAW) detailed on their conference call how they would be reporting the results of a study they were conducting in late March.

The call went into extensive detail about the study using their ultrasound device, TAEUS. An acronym for Thermo-Acoustic Enhanced UltraSound. When they announced the study results on March 29, the market was, shall we say, less than enthused.

My takeaway from the conference call was that this study was done to set a baseline for the product, and for the procedures clinicians would employ when using TAEUS.

I didn’t get the sense from the call that any breakthrough would be announced from this study. They were just setting a baseline, getting their first look at the grey screen and just beginning to get to “better”.

I believe there is an opportunity in the warrants at these levels. The selloff in the common seems overdone. And, now that the market has had a few days to digest this news I wouldn’t be surprised to see the common, and the warrants, drift higher. The warrants are exercisable at $6.25 and expire May 12, 2022.