ZYXI
I've been buying a little ZYXI (Small Position) here and there since earnings day's .30 and lower. here is what I like.
1) ZYXI Earned .02 in q3, thanks to cost cutting they now have become a profitable company and a turnaorund story.
2) If they hit guidence, which to be honest I doubts they do on the revenue front. That would have q4 revs between 4.6-and 5.6 million. They earned .02 with 3.6 million, with 78% gm if revs are over 4 million we could get to .03 for the quarter quickly. At 5 Million earnings could be in the .04-.05 for q4. As I said I doubt they hit revenue guidence, but I don't need them to to make a case that they are cheap.
As every stock there are some warts (1) Balance Sheet issues, as the balance sheet is weak. (2) Can they hit guidence, as I said before, they don't necessarily need to to make it work. But revs need to come in at least q3 levels for this to work out with similar expenses. (3) Lack of liquidity.
Conclusion: I like ZYXI, they had a good quarter, if you can purchase some under .30 probably offers a very good risk/reward, there is some swing and miss in this one to say the least, but it also has potential to double or maybe more if q4 goes to plan. All is just my opinion, and I could always be wrong though.
