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Good morning! Jeff Bishop here. |
I hope you're gearing up for an exciting weekend — especially those of you with teams still left in the playoffs 🏈. |
With my beloved Cowboys knocked out 💔, I'm laser-focused on the markets and finding my next big trade. |
As much as I love football, my true passion is finding stock ideas with insane upside potential. |
And I believe I've found it with this week's Bright Idea 💡. |
This week, I have an idea that is very personal to me. I think this stock could truly revolutionize care for diabetes — a disease that's near to my heart since my mother died mainly of the disease 10 years ago. |
I'm happy to support any company that can save or prolong the lives of people with diabetes, but this company could have the potential to really change the game. |
Besides saving lives, I think the stock itself has enormous potential right now. |
With that said, here's the ONE company that I think deserves your attention today. |
So, clear your plate of all other distractions and focus on just this one stock today: |
Modular Medical, Inc. (Nasdaq: MODD) |
This development-stage insulin-delivery company has been on a tear the last two months… rocketing over 60%... and for good reason… |
The California-based company has been trading on Nasdaq for nearly two years and is now on the cusp — this month! — of submitting its pioneering device for FDA clearance. |
Let me explain why I think MODD merits a close look… |
First, let's start with the stock chart. |
As I have been surfing charts lately, I had to take a step back and say, "WHOA!" |
You know I love using my "Gamma Trigger" set up along with "GO" signals from the AI trading indicators I use. |
When I see both of those in play, the stock gets my immediate attention. |
Right now, here is what I am seeing…. |
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This doesn't take a lot of explanation. |
In the last couple of months, we have seen some breakout moves higher following the "GO" signals. |
We are seeing the same thing right now, but MODD hasn't made a big move (yet). |
I see this as an amazing risk/reward opportunity. |
Consider what the downside looks like, versus what you see in the chart above when things work out. |
Does it get any better than that? |
I could stop right here and you have enough to make a decision… "but wait, there's more!" |
(Very) Big Market Opportunity |
You're probably aware that diabetes is a big deal in the medical industry — affecting a ton of people and costing a ton of money. But let's look at some of the numbers… |
The American Diabetes Association says that "In 2021, 38.4 million Americans, or 11.6% of the population, had diabetes." It released a report in 2022 that estimated the annual cost of diabetes to be $412.9 billion. |
"People with diagnosed diabetes now account for one of every four healthcare dollars spent in the U.S.," the report noted. |
Citing 2020 data from the Centers for Disease Control and Prevention, MODD points out that 3.6 million Americans require daily insulin — that includes 2.9 million who use multiple daily injections (MDI) and 670,000 who use insulin pumps: |
 | (CGM stands for 'continuous glucose monitors') |
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Of those who use MDI, research firm Seagrove Partners has found that about 25% are "almost pumpers" — "meaning that they have considered going on a pump, understand pump therapy benefits, but want something simpler that doesn't have all the 'bells and whistles'." |
That's where MODD expects to come in. The company believes that existing insulin pumps are geared toward "superusers" and are "prohibitive for many to learn and manage." |
The pumps have too many complicated features that most diabetics don't need. This increases costs and puts them out of reach for many. As the tagline on MODD's website reads, it aims to provide "diabetes care for the rest of us." |
That hit home with me because my Mom really needed daily insulin, she just couldn't get over the thought of needles and insulin pumps weren't on her radar. An affordable and intuitive pump could possibly have made a real difference for her. |
Great Timeline and Vision |
Modular Medical calls its candidate device "MODD1" and says it will provide "insulin delivery for Almost Pumpers." Here is a diagram: |
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MODD says this simple design will enable "automated, high volume manufacturing" at a fraction of competitors' costs. It will also be simple and easy to learn for providers and their patients. |
For MODD1 to make it to market, it first must receive FDA clearance. MODD's first FDA meeting was in Nov. 2019; its second was in Mar. 2020. The company went public in Feb. 2022. |
For all this time, investors have been on standby as the product was developed and tested. |
However, according to a December investor presentation — and this is why I'm bringing MODD to your attention now — the company is expecting to submit its MODD1 device for FDA clearance this month. |
Here is its projected timeline for 2024: |
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Folks, if all goes well, MODD1 could be launched commercially before year's end, but any of these events could be catalysts for major stock-price action. |
And the company doesn't plan to stop there… |
It's already 50% through the development phase of "MODD1+" which will be a cellphone-controlled version of the device that can integrate with CGMs for algorithm-adjusted dosages. |
After that, it plans to launch what it calls the "future of care": MODD2. Here's how the investor presentation describes it: |
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The goal is for the device to effectively be an "artificial pancreas." |
No human intervention required? Ask anyone who uses regular insulin, and they'll tell you this – it would completely revolutionize their treatment and dramatically improve their lives. |
But it's one thing to dream big. The question is whether MODD has the team in place to make such dreams a reality, and that's what I find most encouraging about this company… |
Leadership Team |
Modular Medical was founded by Paul DiPerna, who now serves as the company's chairman and CTO. |
Mr. DiPerna has led over 10 projects to FDA approval, including the t:slim insulin pump — a leading pump for type 1 diabetes — which he designed and took the lead in developing. |
The t:slim pump is produced by Tandem Diabetes — a company Mr. DiPerna founded and served as CEO of. It currently has a market cap of nearly $1.7 billion. |
I guess you could say Mr. DiPerna knows a thing or two about starting a successful company! |
In July, the company announced another all-star, Duane DeSisto, would be joining its lineup: |
Mr. DeSisto served as President and CEO of Insulet from 2001 to 2014, where he led the creation and commercial adoption of the Company's debut product, OmniPod, the world's first tubing-free disposable insulin pump. Under Mr. DeSisto, Insulet grew from an early-stage company to a market cap of more than $2 billion and was nationally recognized for its technology design and rapid growth, including being listed fourth on Forbes' "Most Innovative Growth Companies" in 2014 with five-year average sales growth of 47 percent. |
Mr. DeSisto retired in 2014 but is now serving on MODD's board. Per Mr. DiPerna, "I am excited to have Duane join our board, as I believe his strategic leadership and market development expertise, and our combined experience leading the commercialization of the two industry-leading pumps will create tremendous momentum for Modular Medical." |
I have to say: It inspires a lot of confidence that two long-time industry leaders who developed billion-dollar insulin pump companies are serving at the helm of MODD. |
Wrapping Up |
I found the fundamentals of MODD very auspicious, but I have to say, the technicals are looking great, too. |
The stock price has spiked as much as 120% since mid-November but is now floating about 80% higher than that mid-November price as investors await news about the application for FDA clearance. |
For their part, insiders have done nothing but buy, buy, buy over the past 12 months: |
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All in all, this pioneering company appears to be on the cusp of a major breakthrough in diabetes care. Investors seem to be taking notice recently, and if the medical device does get FDA clearance, this stock and company could see increased attention and interest & positive action may develop in the stock price. |
As always, though, you need to do your own homework. |
I was pleasantly surprised with the company website and investor presentation. Normally healthcare-related companies publish only impenetrable jargon, but I found MODD's materials very readable and compelling (that alone makes it stand out as a company!). |
Be sure to study the stock chart in detail as well, and consult any other resources at your disposal. |
I think this company has a ton of potential. See if you agree. Until then… |
To Your Success, |
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Jeff Bishop |
*This investment involves substantial risk. Please see full disclosure below, and detailed discussion of risks and atypical results. |
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© Copyright 2022, RagingBull |
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DISCLAIMER | *PAID ADVERTISEMENT. Raging Bull has currently been paid twelve thousand five hundred dollars from Sica Media who was compensated by a third party not affiliated with the Company for advertising Modular Medical, Inc. from a period beginning on January 19, 2024. The third party, Company, or their affiliates may own and likely wish to liquidate shares of the Company at or near the time you receive this advertisement, which has the potential to hurt share prices. This advertisement and other marketing efforts, including alerts, may increase investor and market awareness, which may result in an increased number of shareholders owning and trading the securities of Modular Medical, Inc., increased trading volume, and possibly an increased share price of Modular Medical, Inc.'s securities, which may or may not be temporary and decrease once the marketing arrangement has ended. 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