Guardion Health Sciences Inc. (NASDAQ:GHSI) had a fantastic month so far with its stock gaining more than 220% over the past 3-week. The gains continued on Friday with the stock gaining 7% and they seem to be far from unjustified.
Last month Guradion Health issued press releases indicating that the company could witness considerable revenue growth in the coming months and quarters. Here is what is causing the excitement and the stock gains:
News releases pushing up gains in the stock
The company released two bits of news which are having an incredible impact on the value going forward. The first release is about the commercial unveiling of the CSV-2000 Standardised sensitivity contrast test. Guardion Healt6h indicated that it had completed the R&D stages of development of their CSV-2000 sensitivity test gadget. The company is now in the process of rolling out the device which will lead to significant revenue growth.
The other good news announced was the acquisition of assets owned by NutriGuard research. This was a significant move considering the assets have been in place for quite some time now and are already earning revenue. Most importantly the acquisition will give Guradion Health a direct-to-consumer portfolio thus expanding its reach substantially.
Gains expected to continue
Guradion Health Sciences stock will continue racking gains in the long term because of the huge prospects of the company. To begin with, the CSV-2000 gadget could create compelling revenue growth considering the company is an established player in standardized contrast sensitivity tests. Its early version the CSV-1000 has been a success which necessitated the company to consider larger audiences. CSV-2000 offers computerized testing and sales could be enormous which will mean more revenue for the company.
Also, the NutriGuard Assets will boost growth in revenue in quarters ahead. NutruGuard Research in the past three decades has been producing sever dietary supplements and baked products. The supplements have become popular which means the company is earning revenue already. For Guardion Health this will be a path to the direct-to-consumer market.