Value Microcaps Motherboard

[ghmm]

ZYNX:

1-On Dilution - The CEO owns a huge chunk and I don't think he wants to give away his shares. Agree they would like to raise capital to fund growth (sales force) but a year or so ago when this seemed like the direction (believe there was an 8k or PR) instead of raising a lot of cash decided to go the small sales force route. So I think they will incrementally build up sales force perhaps even funding through sales growth alone!
2-On Units being expensive - They are expensive for customers to buy. I don't think they cost them that much to purchase from mfg. Margin's are spectacular!
3-On AR write off - They had always taken reserves do to price being high and then reimbursement negotiated at a percent of the price. So as sales are ramping AR ramps. They do this every quarter and have always indicated it in the Q's/K's. The write off I believe came about because they adjusted the reserve amount.

I think yeah the company may have some issues. IF you look at the growth rate and the projections and if they keep reinvesting and adding sales force the top-line will continue to have some spectacular growth going forward.

Disclosure: I've been long ZYNX for some time.