Organovo Holdings (ONVO) has doubled in the past two weeks and now sports a market cap in excess of $1 billion with a share price of $12-13. The company has 58 cents per share in cash following an equity raise at $4.50 in July. Aside from that, total assets for the company amount to just $1 million. The company currently has no products on the market, but hopes to launch a 3D liver assay in December 2014. However, detailed market analysis reveals that total market potential for this product is only a few million dollars. There are already competing 3D liver assays on the market which sell for as little as $1,750. Swiss company Insphero reveals that the market size for these assays is at most a few thousand units per year. The stock has recently doubled due to a tremendous wave of articles which suggest that Organovo is on the cusp of generating hundreds of millions of dollars in near term revenues. The stock is held 93% in retail hands and has no institutional research coverage. As investors realize that the best case if for $3-5 million in revenues over the next 3 years, the stock should be due for a meaningful correction. Meanwhile, insiders have been selling millions in stock and have filed a massive S8 registration statement by which they can award themselves 11 million more shares, valued at $130 million. Additional concerns are highlighted herein. In the near term, Organovo should be expected to drop by around 50%, returning to the $5-7 level where it was just two weeks ago.

I last wrote about Organovo Holdings (ONVO) on July 24th. Since my last article, there have been several new developments which further reinforce the short thesis on the stock. The stock has continued to fall as expected. First, the S3 registration statement for up to $100 million of new shares and/or warrants has now become…

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Organovo (ONVO) is about as hot as any concept stock could ever be right now. It sits right at the crossroads of 3D printing and regenerative biotechnology. In addition, Organovo just uplisted from the OTCBB to the NYSE, further fueling the strong enthusiasm. Following the uplist, Organovo soared from $3.90 to $8.50, a gain of…

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