Tuesday, May 24, 2011

Cytori Therapeutics Inc. (NASDAQ: CYTX) Q3 2011 Price Target

Recent price: 5.08$
P/E Ratio: -
3 Months Target Price: 7.50$

Company Description
According to Reuters, Cytori Therapeutics Inc. develops, manufactures, and sells medical products and devices to enable the practice of regenerative medicine. The Company’s technology is the Celuion family of products, which processes patients’ adipose-derived stem and regenerative cells (ADRCs) at the point of care. The Celution family of products consists of a central device, a related single-use consumable used for each patient procedure, enzymes, and related instrumentation. The Company also sells the StemSource family of products globally, including in the United States, for research as well as for the cryopreservation and storage of ADRCs. The other applications for the Celution System output, which are under development include, cardiovascular disease, wound healing, gastrointestinal disorders, stress urinary incontinence, liver and renal disease spinal disc degeneration and pelvic health conditions.

Confidence Margins
Strong resistance $8.44 (+66%)
Light resistance $7.72 (+52%)
Light support $5.04 (-1%)
Strong support $4.07 (-20%)


Current technical levels provide a great entry point for a position in Cytori Therapeutics for the coming quarter. As the long position in the favored action to take, this will yields great returns to investors.

Entry strategy
For the cautious investor:
Buy the stock for 5.50$ or less.

For the risk-taking trader:
The Semptember 2011 7.50$ out-of-the-money call option contract seems to be the right position to take, they can be acquired for about 55$ per contract.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 7.50$, or keep it until 8.25$ if you are more bullish in your own analysis.

For the risk-taking trader:
The contracts should be kept until the underlying reaches around 7.50$. This should provide a satisfactory return if the underlying reaches the target price as the contracts will get in the money.

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