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$CHEK Megathread.
I want to do DD on a low penny stock which may soon blossom into a beautiful, NASDAQ compliable stock for you. This being a biotech stock, I want to keep things as simple as possible for everyone and I'll do my best to explain my thoughts as we go. Enjoy :))
I want to do DD on a low penny stock which may soon blossom into a beautiful, NASDAQ compliable stock for you. This being a biotech stock, I want to keep things as simple as possible for everyone and I'll do my best to explain my thoughts as we go. Enjoy :))
-I'll start by just giving a quick overview of their product.
-'C-Scan' is a capsule based technology for colorectal cancer screening. It is an ingestible capsule which scans your large intestine to build up a 3D image of it for the physician to see and make judgements upon.
-'C-Scan' is a capsule based technology for colorectal cancer screening. It is an ingestible capsule which scans your large intestine to build up a 3D image of it for the physician to see and make judgements upon.
Ok, so promising so far. This is essentially a new form of a colonoscopy which removes many of the obstacles preventing people from having an original colonoscopy (eg: fear...)
Before I go further into the product, let's talk more about who Check-Cap Ltd are...
Before I go further into the product, let's talk more about who Check-Cap Ltd are...
-Check-Cap Ltd ( $CHEK for short ) are the medical diagnostics company developing C-Scan.
-They currently have CE certification (Conformitè Europëenne ==> European conformity), this is pretty much FDA approval but for Europe.
-CHEK were founded in 2005.
-They currently have CE certification (Conformitè Europëenne ==> European conformity), this is pretty much FDA approval but for Europe.
-CHEK were founded in 2005.
-Their vision since inception was to create an ingestible colorectal cancer screener.
-They have offices in Israel and Boston MA.
So, we have some encouraging signs already as to this company's motives and reputation.
Onwards we go...
-They have offices in Israel and Boston MA.
So, we have some encouraging signs already as to this company's motives and reputation.
Onwards we go...
-CEO is Alex Ovadia since 2013.
-Used to be Global Director @ Philips Healthcare.
-Before that, he worked various roles @ Elbit Systems - a major global defence company. In this role he communicated a lot with government officials from around the world.
-Used to be Global Director @ Philips Healthcare.
-Before that, he worked various roles @ Elbit Systems - a major global defence company. In this role he communicated a lot with government officials from around the world.
-Ovadia has a BSc in Electrical Engineering from the Technion Institute in Haifa, Israel.
Well, we have an established CEO with a good track record. He also seems to have a decent amount of competence. More hopeful signs!
Well, we have an established CEO with a good track record. He also seems to have a decent amount of competence. More hopeful signs!
-The founder of $CHEK is Yoav Kimchy PhD, a specialist in algorithms and imaging. He received his PhD from the Technion Institute in Haifa, Israel.
Even more competence! That's great! Things are looking good so far. Let's next look at the Chairman of the board...
Even more competence! That's great! Things are looking good so far. Let's next look at the Chairman of the board...
-Steven Hanley = Chairman of the board since 2017
-He's experienced in global business & highly complex pharma companies
-Adept in medical devices too
-He was the Chairman and co-founder of Medibeacon (Formed upon acquiring assets & intellectual property from Covidien in 2012)
-He's experienced in global business & highly complex pharma companies
-Adept in medical devices too
-He was the Chairman and co-founder of Medibeacon (Formed upon acquiring assets & intellectual property from Covidien in 2012)
-Hanley is also experienced in introducing numerous drugs and medical devices to places such as Eastern Europe, China, Latin America...
Again, looks good. Competence surrounding the leadership is high. Also, Hanley seems to have a keen eye for emerging markets, a good sign here
Again, looks good. Competence surrounding the leadership is high. Also, Hanley seems to have a keen eye for emerging markets, a good sign here
Scientific Advisors (there are many, I'll just name 2):
-Prof Nadir Arber => Prof of Medicine & Gastroenterology @ Tel Aviv University.
-Prof Seth Gross => Medicine Prof @ NYU.
I like the advisors they've assembled. All ooze the technical know-how to get this company moving
-Prof Nadir Arber => Prof of Medicine & Gastroenterology @ Tel Aviv University.
-Prof Seth Gross => Medicine Prof @ NYU.
I like the advisors they've assembled. All ooze the technical know-how to get this company moving
Ok, now onto the product - C-Scan. They have spotted a gap in the market, here's why:
-Colorectal cancer (CRC) = 3rd most common cancer diagnosed in men and women.
-CRC = 2nd leading cause of cancer related deaths.
Essentially, this product screens for a very common cancer.
-Colorectal cancer (CRC) = 3rd most common cancer diagnosed in men and women.
-CRC = 2nd leading cause of cancer related deaths.
Essentially, this product screens for a very common cancer.
-CRC then, is one of the deadliest cancers around. However, it is one of the most preventable IF DIAGNOSED EARLY.
To further demonstrate the gap in the market:
-In the US in 2016; 134,000 cases of CRC recorded, of which there were 49,000 deaths.
We need earlier diagnosis.
To further demonstrate the gap in the market:
-In the US in 2016; 134,000 cases of CRC recorded, of which there were 49,000 deaths.
We need earlier diagnosis.
-Imo, and in the opinion of medical experts, regular screening should take place for 50-75 year olds
-HOWEVER, current screening methods are unattractive.
Here is a graphic demonstrating what people say puts them off getting a screening rn
Imo, $CHEK could fill a huge gap here
-HOWEVER, current screening methods are unattractive.
Here is a graphic demonstrating what people say puts them off getting a screening rn
Imo, $CHEK could fill a huge gap here
C-Scan consists of:
-C-Scan Cap => Ingestable capsule which records data.
-C-Scan Track => Tracks capsule & records data.
-C-Scan View => App which displays the info.
Here's an image of all 3 to highlight just how unobtrusive this could be for the patient.
-C-Scan Cap => Ingestable capsule which records data.
-C-Scan Track => Tracks capsule & records data.
-C-Scan View => App which displays the info.
Here's an image of all 3 to highlight just how unobtrusive this could be for the patient.
C-Scan is needed because it means:
-No fasting or bowel prep pre colonoscopy
-Patient can continue w/ normal daily activities while capsule is inside
-Capsule naturally propelled through large intestine by body
-Data collection is unobtrusive
Why is this so groundbreaking? ...
-No fasting or bowel prep pre colonoscopy
-Patient can continue w/ normal daily activities while capsule is inside
-Capsule naturally propelled through large intestine by body
-Data collection is unobtrusive
Why is this so groundbreaking? ...
-Produces an image based off of scattered radiation.
-Uses ultra-low dose X-rays. (Capsule includes a shield to cover X-ray source. Shield only opens when capsule is in motion. Limits exposure)
-X-ray exposure is very low. Significantly lower than things like CT scanners.
-Uses ultra-low dose X-rays. (Capsule includes a shield to cover X-ray source. Shield only opens when capsule is in motion. Limits exposure)
-X-ray exposure is very low. Significantly lower than things like CT scanners.
-The capsule will simply be excreted and the patient is notified once it's left the body :)
On to C-scan Track:
-As the pic showed, it's 3 patches worn on the back during cap passage.
-This simply records the data
So far so good then. The fear of a colonoscopy has gone! Yay!
On to C-scan Track:
-As the pic showed, it's 3 patches worn on the back during cap passage.
-This simply records the data
So far so good then. The fear of a colonoscopy has gone! Yay!
C-Scan View is where the magic happens:
-State of the art app.
-Allows the physician to view the 3D image of the colon and look for abnormalities.
-The user can scroll, zoom and fly around the rendered image as the health of the colon is checked.
Fantastic, yet again!
-State of the art app.
-Allows the physician to view the 3D image of the colon and look for abnormalities.
-The user can scroll, zoom and fly around the rendered image as the health of the colon is checked.
Fantastic, yet again!
Financials:
-Need to regain compliance by 28th Dec 2020 according to 5th June PR.
-27th May PR stated that the company had strengthened their balance sheet through $16.3m in direct offerings & a private placement of shares.
-Looking to start US C-Scan trials in 2021.
-Need to regain compliance by 28th Dec 2020 according to 5th June PR.
-27th May PR stated that the company had strengthened their balance sheet through $16.3m in direct offerings & a private placement of shares.
-Looking to start US C-Scan trials in 2021.
-The 29th May PR also said they were progressing toward FDA IDE approval
So, direct offerings are happening but I feel the burning need to drive this price up to compliance levels will soon take hold
-Institutional SHs own ~2.9% shares. (Renaissance Tech LLC, Morgan Stanley...)
So, direct offerings are happening but I feel the burning need to drive this price up to compliance levels will soon take hold
-Institutional SHs own ~2.9% shares. (Renaissance Tech LLC, Morgan Stanley...)
Risks:
-Seem to have used direct offerings as a means of funding. If this continues, we may see a lower price.
-FDA IDE approval not yet received.
-Stock seems to be being manipulated atm due to it's very low levels. However I do see this as a good entry point.
-Seem to have used direct offerings as a means of funding. If this continues, we may see a lower price.
-FDA IDE approval not yet received.
-Stock seems to be being manipulated atm due to it's very low levels. However I do see this as a good entry point.
Catalysts:
-FDA IDE approval will be big when it arrives. (They recently posted positive pilot study results in the US)
-CE Certification in Europe = sales are soon to follow.
-According to their website, they're currently building their 'global operational infrastructure'.
-FDA IDE approval will be big when it arrives. (They recently posted positive pilot study results in the US)
-CE Certification in Europe = sales are soon to follow.
-According to their website, they're currently building their 'global operational infrastructure'.
Chart:
-The time is ripe to buy.
-Low RSI & potential MACD cross.
-Volume is coming in.
-50 Day MA infers a PT of $1 to $1.5 in the near future.
-The time is ripe to buy.
-Low RSI & potential MACD cross.
-Volume is coming in.
-50 Day MA infers a PT of $1 to $1.5 in the near future.
To conclude:
-I'm excited by this one
-They need to build this 'global operational infrastructure' quickly. (I think they will do/are doing)
-Good entry point rn
-News must come before Dec 28th
-Fantastic product - will make colonoscopies a lot easier for a lot of people :))
-I'm excited by this one
-They need to build this 'global operational infrastructure' quickly. (I think they will do/are doing)
-Good entry point rn
-News must come before Dec 28th
-Fantastic product - will make colonoscopies a lot easier for a lot of people :))
