![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Wednesday, February 20, 2019 2:05:26 PM
I do like this company and will buy unless it runs away from me. However, they will need to raise cash and using debt at this stage is premature and too risky despite the appeal.
If a capital raise of 50M is made then I will take the plunge. I prefer a placement at $2.50/sh with no warrants. Perhaps a quick sale for $300M is the best option for the longs here to recoup some losses.
Debtors will want bond covenants or debt terms which puts shareholders and management at too much risk if sales are delayed for any reason. There could be hiccups in the delivery or implementation stages and cash will be needed to avoid being consumed by vultures.
Sales will be slow in the first 2 years while markets gain acceptance and costs will be high due to the sales and support teams. Intuitive went sideways for 5 years before boom time so institutions can wait until they get a sense of market acceptance. A buyer like J&J can enter earlier once the device has been approved by FDA.
Looking 5 or 8 years down the road this will be an outstanding investment and a 10 or 20 bagger perhaps, even with the dilution proposed. However, it is too early for the bigger institutions.
Other small caps can have very high institutional holding despite a sub $5 share price, but these will be smaller niche institutional buyers who I fondly term vultures at the moment. If you see Wainwright or similar coming then walk away.
The recent run up is mostly retail speculation and to some extent you guys. I had my finger on the trigger at $1.05/sh but was waiting for the financing so my bad for missing the current rise. I do believe thought that my patience may be rewarded relative to buying right now.
The bridemaid (for now) ...
Cheers!
HealthLynked Corp. Announces Second Quarter and First Half 2024 Results: Continued Cost Reductions Set the Stage for Strategic Shift to App-Based Technology Services • HLYK • Aug 16, 2024 8:00 AM
PickleJar Announces Official Name Change and New Ticker Symbol • NREG • Aug 15, 2024 2:23 PM
VAYK's Q2 Profit Added to Accumulated Net Profit of Over $2.2 Million In 18 Months • VAYK • Aug 15, 2024 9:07 AM
Swifty Global Reports Strong Q2 Performance and Prepares for Major Exchange Uplisting • DRCR • Aug 15, 2024 9:04 AM
Mayback's Global Entertainment Signs Global Distribution Agreement with Children's Media Studio • AHRO • Aug 15, 2024 8:45 AM
POET Technologies Reports Second Quarter 2024 Financial Results • POET • Aug 15, 2024 8:04 AM