From Keith Fitz-gerald
Dear Total Wealth Investor,
Tiny Ekso Bionics Holdings Inc. (NasdaqCM:EKSO) -a part of our Unstoppable Technology Trend - recently released numbers and they were good.
The company continues to sell into stroke and rehabilitation centers in Europe and North America as planned.
Quarterly revenue was $1.9 million, which represents a 30% increase year-over-year driven largely by medical device sales of $1.5 million during that time frame.
Importantly, Ekso continues to prosper and the sales channel is growing, which, according to CEO Thomas Looby, may allow the sales window to shorten considerably from 18 months to 12 or less.
With 25 product demos in the U.S. and another 25 in Europe, that could finally spell the breakthrough needed to track higher.
[Urgent] HUGE lump-sum payouts thanks to a Great Depression era set of "programs"... Learn more.
Still, the company's got its own challenges. Like many disruptors, Ekso has to educate the market before it can put up the numbers needed to carry it to the valuations it rightly deserves.
That means a lot of time and money spent upfront to build knowledge. Revenue, for lack of a better term, gets backloaded as a function of maturity.
To that end, I was thrilled to see the company engage in another rights offering because cash is the one thing they need to make this happen. This time the offering was for a total of $34 million and at a price of $1 per share.
I hear from investors all the time who are bothered by the "dilution" or the fact that the markets haven't yet given the company a chance. It's a fair criticism.
Yet, to them I reply:
this is no different than Apple Inc. (NasdaqGS:AAPL), Monster Beverage Corp. (NasdaqGS:MNST) or dozens of other companies who've done the same thing at one point or another in their corporate lives
Disruptive companies often struggle before they take off because the markets have to absorb the technology they have on offer.
To reiterate, this is one of those companies where you need to get out of the kitchen if you can't stand the heat.
Ekso remains a speculative investment in the truest sense of the term so treat it accordingly.
Pay careful attention to CEO Tom Looby when he says that the company simply has to spend more time telling its story.
Because that's exactly what's needed - and what he's doing!
Best Regards for great investing,
Keith
