KORU Medical Systems Inc (KRMD)

[blue_skies]

The best case net sales in 2021 is $22 million. This is a decrease from $24 million in 2020 (or approximately 8%).

The best case for 2021 earnings is breaking even. This assumes a robust second half. There are uncertainties concerning the length and continued impact of covid-19 as well as uncertainties surrounding the timing of new drug introduction and sales.

The company's infrastructure and expenses need to be reduced given the smaller net sales. The company is using cash and cash flow for the Q4 should be looked at.

The argument about the story remaining in tact. Well yes but, new scripts are weak and will remain weak until the pressure on the medical providers lightens. The model of creating early partnerships with drug companies during drug trials is sound and will be emulated by competitors.

the management credibility has been damaged. Telling and selling the same old story to the investment community will be difficult. Several analyst have dropped the company rating to neutral from buy. And all analyst have dropped share price target. Price targets of $4.50/$5.00 are probably low but do not give me a warm fuzzy feeling about the company or the stock. The company matrix to make 50 million by the end of 2022 is probably 18 months behind schedule and needs revision.

It would be encouraging to see strong insider buying. 500 shares($2500) by the CFO is not inspiring.