Stereotaxis Inc. (STXS)

[tootalljones]

This stock looks real. Q1 yr 2000 Presentation. http://ir.stereotaxis.com/static-files/b0968717-0f7c-4700-a46c-71300fa96346

1. It is now finally cash flow positive (just barely), which 95 percent of small biotechs and med techs never attain, or come close.

2. New young CEO rescued it, and is obviously talented and committed and not interested in lining his own pockets whatsoever.

3. The technology appears best of breed, an obviously important thing for a variety of reasons. 100 patents, wide moat, not some kid stock that just started 2 or 3 or 4 years ago.

4. As the presentation says, the market is 4B per year, and growing 10 percent per year. (heck, even the growth annually, starting at 400 million global market aint bad!). The company currently has just 1 percent of the existing market.

5. Has a nice fat cash balance of 34 million, so for the next couple years you dont have to worry about a secondary. The company has been extremely frugal to date in its spending, but this cash balance lets it now market the new machine with some muscles, unlike at any point in this companys history.

6. The mews announcements the last 9 months show the company is partnering with other best of breeds, while advancing its latest flagship product which was CEd in Europe last year. It is now being marketed there. The FDA approval process in America seems very advanced. Possible approval in February, in fact probable approval as this is the end of the 90 period. The fda recommended catch up application sailed through very quickly with approval. I would say probable approval in february but even if FDA asks for more info, eventually the new flagship is gonna be approved, there is no question whatsoever, and the Europeans have already approved it. I think the stock lurches much higher when FDA approves it.

7. The company is already cash flow positive and has a very stable existing customer base of 110 existing clients, all of which will buy the new flagship.

8. The company also has, most wonderfully, the razor blade model as well, and seems in sum like a tiny ISRG.

9. Recent comparable sales, per SA authors, suggest it is now worth between 15 and possibly as high as 25 bucks. And the stock price is clearly being bought without a doubt.

10. I think the first sale of the flagship, which could be in europe any week now, will also lurch the share price much higher.

11. Insiders hold a ton of the stock, another key marker, and institutions have been buying without any question, steadily.

12. Personally, I like all of this, a neglected company with best of breed technology, that had poor leadership, with a new ceo who is not greedy, has the energy of a young guy, is totally committed with his own money and his familys money, with funds now deeply committed, with high margins (not like a drug but 60 to 80 recurring margins is fairly hard to beat, with a huge patent protection propriety technology, etc.......IF THIS WERE A BIOTECH THIS STOCK WOULD HAVE A BILLION DOLLAR MARKET CAP

13. Margins are either 60 or 80 percent, depending on whether it is a new system purchase, or simply the razor blades later.

14. If you look at their twitter page, it is abundantly clear that they have an amazing product, and that physicians around the world are thrilled with it. These docs know the competition quite well and none say they would ever any longer use it. The Stxs product(s) is superior, and it is logical that it would be superior with the companys proprietary approach, and most important, it is safe for docs and operating room staff to use, and the competitions stuff is unsafe and there are stats on this to back up this claim.

15.There is the suggestion, made now by the CEO several times, that they are also formulating partners to attack 2 or 3 other multi billion dollar markets, lung and peripheral and neuro surgical. This is down the line obviously but once the new machine is selling, as it will and as it must, I can see them partnering it with a giant for these other markets, at some point this year or next year.

16. My sense in medical robotics is that when you hit it, you really hit it big. There are so few of these companies around that are truly good and they naturally will garner an amazing premium due to the incredible futures they will have, if they are real. Understandably the robotics market is red hot if the company is real.

17. Last but not least, from a macro investing standpoint, every tom dick and harry fund manager is worried about what the business professor ninnies call late cycle investing.
And it is true I suppose that based purely on the past few economic cycles, some can say equities now are Late Cycle, a new cool word or phrase. But from a science perspective, all this is nonsense. These prior analogy markets are merely anectdotal, not predictive scientifically, Big Difference. It is sort of like betting football. You will see all these oddsmakers and gambliing junkies saying, you know the forty niners should win because the last 9X they played this team on the road and were away dogs, they have won 7 of 9 of these games. So the bet for the niners is obviously correct. .....WRONG...the teams had probably almost completely different players, in fact both teams. What happened in the past between teams which had guys who are now completely retired is irrelevant to the current players and teams.

So while I am invested in gold miners, and love gold now as an investment, there is no way if I am right, that gold will go up the way a true robotics company will. Just compare isrg with a gold index the past 2 decades. NO comparison to put it mildly.
And my point is, a robotics company pretty much does not give 2 scheats about economic cycles, or late stage investing, if there is such a thing. It is gonna go up wildly regardless.

QUESTION: Have I forgotten anything? This one appears very real. The revamped corp. presentation is impressive.

check out their twitter page, you will see very very happy customers and the sky is the limit type of thing. 100,000 patients treated to date, and hundreds of docs have used it so far, worldwide. No complaints. Nobody going back to the old standardized outmoded (?) manual push method.