Oculus Innovative Sciences Inc (NASDAQ:OCLS)

CAPS Rating: 1 out of 5

The Company has developed and it manufactures and markets, a family of products intended to prevent and treat infections in chronic and acute wounds.


Player Avatar TSIF (99.96) Submitted: 3/20/2014 3:47:40 PM : Underperform Start Price: $5.75 OCLS Score: +18.96

Oculus Innovative Sciences, Inc. (OCLS) share price was high at $4.00 based on it's pipeline status. The approval of product in Mexico does little to validate it. John Ford on Seeking Alpha cites higher potential from a planned spinoff (Ruthigen IPO). Spinoffs can sometimes be lucrative, but if you're just divvying up debt, someone will lose. 1 plus 1 is still 2, not 2.5.

FDA approval of a scar treatment in December doubled share price to $7, so today's prices may seem low, but you still have to market and manufacture it, generally significantly growing S&G costs/sells. An FDA approval does not mean a rich return in all cases. (DNDN).

OCLS is clearly in a negative cash flow situation, requiring constant attention.

Not a heavy conviction/opportunity here as catalysts, while effectively week, could cause renewed short covering, pop and drops. Looking for a retrace and a close until the dust settles again.

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