Insite Vision

AMEX:ISV

There was quite a bit of activity around this stock yesterday. They got $60M through a "Non-Recourse Note Offering" which made the price jump about $0.09. This may not sound as much, but given the price at closing on Friday was $0.61 it's a nice 15% gain in a day.

Unfortunately I haven't invested that heavily in ISV, so my gain only amounted to around $9.90 so far. I do believe however, that this stock could see a big gain in the future, as they have a some promising product candidates in the pipeline. Some of the extra money with help advance these products, though it seems they may still need a few years to make it to the market, so the question is how long to wait

The Non-Recourse Note Offering is basically a loan guaranteed in the royalties of a product currently in the market, so as with so many other things, this could easily go belly-up. If the royalties start to falter so it will not cover the principal and interest on the loan, the rest of the company could be in big trouble. This is also the case with the products in the pipeline, as no-one yet knows how viable they are. They could all be flops or they could all be hits. Unfortunately in that sort of market there's little in between those two things.

I'm going to hang on to my few stocks a bit longer. At least until they've revealed their fourth quarter and full year earnings later today :) hoping it's good news.