Considerable patience has been demanded upon investors who have bet on Imaging3, Inc. (OTC: IMGG) as the company continues to await FDA approval for its revolutionary DViS (Dominion Volumetric Imaging Scanner).
While IMGG already offers a number of medical products including C-arm tables along with pain management tables, surgery tables, urology tables and vascular tables it is DViS that could turn the company’s stock as they concentrate more on providing proprietary medical imaging products.
What DViS offers is a real-time view of 3D, high-resolution images of just about every part of the human body, a diagnostic technology that instantly changes the way health care is provided. IMGG has not only insisted the new technology will save lives but also money and with the recent changes in how healthcare is being managed this could be an attractive sell to hospitals as they look to replace expensive equipment with more affordable and accurate technology.
Of course nothing has been easy for IMGG investors as they’ve been sitting on FDA approval for some time and it’s been more than two years since CEO Dean Janes announced in an April 2008 press release that the company had been granted approval for distribution of the Dominion Vi Scanner for investigational purposes only. Janes expressed confidence that this step would lead to “full FDA approval in the near future” but the lengthy process has set doubt in the minds of many investors.
With uncertainty comes activity and the price of IMGG stock has seen its stock jump from a 52-week low of .035 set on Aug. 21, 2009 to a robust 52-week high of 1.95 less than three months later.
Everything appears to be resting on FDA approval as investors have reacted to any news related to the progress as the stock hit its 6-month high of .85 on April 6, 2010, one day after the company gave an update to their FDA status.
Many penny stock investors feel that if the FDA wasn’t seriously considering approval for the DViS they would have rejected the application a long time ago. This has been the carrot that many investors have been chasing as they know FDA approval could send the stock skyrocketing. There has been some worry that changes to the FDA review staff would hinder the approval process but this setback shouldn’t be a determining factor in gaining approval.
For now the wait continues but that doesn’t mean investors will sit on their hands as IMGG remains one of the heaviest traded stocks on the penny stock market. With many investors seeing the lengthy FDA process as a bad omen there are just as many investors willing to come in and grab at a low price, betting the FDA approval will come soon enough.
IMGG does not currently have much technical strength with a Weighted Alpha of -61.30 although many popular trading strategies have proven effective; most notably would be the short term indicators including the 7 Day Average Directional Indicator and the 20 Day Moving Average vs Price. Currently, IMGG has a 200 day moving average of 0.6130, more than twice its current share value, and a 50 day moving average of 0.3284 as can be seen in the chart below:
IMGG is currently a penny stock traded on the over-the-counter bulletin board (OTCBB). Penny stocks are shares of a publically traded company which are valued at less than $5 per share.