Guardion Health Sciences Inc (NASDAQ: GHSI) has had an incredible week this week, trading on gains of well over 50% from its opening price on Monday. These gains are continuing today, adding another 7% to the growth early on. The gains are far from unwarranted as well.
GHSI has issued two very big press releases over the past month, suggesting that we will see a substantial increase in revenue in the months and quarters ahead. Today, we’ll go over 3 reasons that the stock is likely to continue on an upward trend ahead, but before we do, let’s take a look at the recent news that’s causing all of the excitement:
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GHSI Stock Sees Strong Growth On Recent News
Ultimately, there are two bits of news that were released by Guardion Health Sciences this month, both having a tremendous impact on value ahead. Here they are:
- The Commercial Launch Of The CSV-2000 Device – One key press release came out about 24 days ago. The company announced that it had completed the R&D phases of development of the CSV-2000 standardized contrast sensitivity test device. As a result of the completed R&D, the company is in the process of rolling out the new product, which, as you will see below, will likely lead to a substantial increase in revenue.
- The Acquisition Of NutriGuard Research Assets – More recently, GHSI announced that it would acquire assets owned by NutriGuard Research. This was yet another important move as these assets have been on the market for some time and are already generating revenue. Moreover, the acquisition gives the company a direct-to-consumer portfolio, expanding its audience greatly.
Three Reasons That Gains Will Likely Continue
While a stock growing by more than 50% in a single week of trading sessions is impressive, the truth of the matter is that the short term growth we’ve seen can’t shake a stick to the long-term potential of GHSI. Here are three reasons that I believe that the stock will continue heading up.
Reason #1: CSV-2000 Sales Are Likely To Be Compelling
First and foremost, the launch of the CSV-2000 device has the potential to generate significant growth in revenue. After all, Guardion Health Sciences is no stranger to standardized contrast sensitivity tests.
In fact, the company’s CSV-1000, an early version of the new product, has become the industry standard in these types of devices. As a result, the company already has a large audience of practices that will likely want to get their hands on the new device.
To put it into perspective, the CSV-1000 device is featured in offices across 60 different states. The light it puts off has become the standard required lighting for FDA studies including these types of tests.
With the CSV-2000 option, the first option to offer computerized testing, on the market, we can expect that sales of this product will be tremendous, offering an meaningful increase in revenue.
Click below to read the second reason I believe GHSI will continue up!