I follow ST message board and it is very clear to me why this stock ran so hard on Thursday. 90% of the people on there have no freakin' clue why they were buying the stock other than the herd was buying and the price was going up. Unless more news comes out, this will drop to at least $5 and probably sub $4 in the next few months. Many believe the recent news will cause a huge revenue jump, some believe they are selling a new device to a new group of patients.
(For anyone new reading this)..While the FDA clearance will allow the current device, EKSO NR (the latest version of the previous EKSO GT) to be used for treatment of an expanded group of patients, it does not mean that every one of those patients will be buying the device. The device is not sold for personal use, it is sold or rented to rehabilitation facilities where the patients share treatment time /use with the device. Yes, some new facilities, that treat ABI (and do not treat stroke and spinal cord injuries) may now purchase or rent a device. Current customers, that currently treat stroke and spinal cord injuries could possibly expand treatment to ABI if they do that sort of treatment, may acquire an addition device or two. (not all current customers treat ABI). It will all add some revenue through support contracts for the devices. That said, the realized revenue does not warrant this huge PPS move.
Also remember that they still have authorization to issue more shares to raise more money. They have demonstrated in the past that they will use PPS increases to their benefit and issue those shares. I expect another issuance shortly. Share issuances always cause the PPS to drop.
