Replies to post #61746 on Savvy Trades and Investments

[2morrowsGains]

SRTS...Unless I'm missing something, it sounds like Q2 will be good and 2nd half will be stronger. From the Q&A..."Do you think that the headwinds related to the partner would carry over into the second quarter?"
Joe Sardano..."No, I don't think so. That's not what we believe or what we understand. And we feel that those 7 units will be installed over the course of the next several quarters.-- The second quarter, there's going to be some heavy activity we feel as well, but we'll be able to catch up the inventory as we're moving along, as far as installations."

We'll see what happens. It's all about Skincure keeping up with growth. Sounds like financing is in place, so that's good. But they need to keep hiring. Joe said Skincure is now a 150 employee company.

Also from the cc...

- We believe that the second half of the year will be strong aided by a number of items including a resumption of substantial sales to an important customer. In addition, we are exploring ways to work with existing multi-site customers to help them purchase multiple units.
- Premier has added SRT to its list of approved products under its brachytherapy product category for its members effective August 1st.

SRTS held and closed @ what looks to be a strong support level on Friday. We'll see if it holds. (I added in the $5.30's and $5.40's due to the low $5's has been support for over a year. Time will tell where it goes from here).

[2morrowsGains]

SRTS...Re: Sensus/SkinCure...SkinCure got funded for $45M. That's huge IMO. This is from Joe Sardano at the B Riley conference last week, and I think it shows what a strong CEO this guy is)...

"Long story short, play by play, and blow by blow...The 29th of March, the last day of the quarter, we have 8 units that have been shipped out. They (SkinCure) want 15. They give us a call. They owe us $5.5M because of the terms. And for the previous 3 years, like clockwork, that money is always there. There is no question, they are a good partner. We have a great relationship. We've helped them build their business, and they've helped us build our business. When I was at General Electric, we developed companies like that to help us develop our business growth and expand our footprint. When I was there at GE and running Positron Emission Tomography, we did $12B a year. 40% of that came from companies like ths. (Obviously they were bigger but you can look them up..(Alliance, Imaging, SMS which is a company out of the mid-west). You had dozens of these companies that were buying MRI's CT scanners, PET CT scanners,and so on.
So these guys (SkinCure) are good partners and they are good operators. But they just got caught in negotiating a new round of funding for themselves. And they thought that everything was done. And Arthur my CFO and his team were very active working with their banks in order to get them the information. And when they (SkinCure) called us on that Friday at 3PM saying the money wasn't going to come because they hadn't finalized the terms & conditions on a new financial round for themselves, we were ticked. And I'm being polite. We were really really ticked.
So we had a choice. We knew it was going to impact our revenue and we knew it would impact our cash. We could have shipped the other 7 units and everyone would have been happy because we would have been at our number. But we held back on $2.5M because we didn't want to the impact and pressure on our reserves or on our A/R. Because that is what would have happened. So we made a business decision that would help long term. And so 2 weeks later we get the money (with apologies). So they got funded for $45M. Unfortunately for us, it was 2 weeks too late. But I still think we made the right decision.
Now we have a 3 year agreement with them (SkinCure). That 3 year agreement expires in July. So we're in the process of renegotiating our agreement. We will tighten up the terms and conditions because they are growing. Their acceptance in the marketplace was a lot bigger and a lot faster than we both anticipated. And that's good for business. But now with $45M, they don't need to have the terms. We were bankrolling their terms. When I was at GE, GE Capital would bankroll the terms for medical. But now we don't have to do that.
So we feel we are going to get back to square one. But what we have to show the market is that Q2 is where we should have been in Q1. I want to do it one step at a time. Seven machines is nothing to recapture. We'll be able to recapture those machines over the course of the balance of the year. That's not going to be a problem. But let's get to the end of this quarter so we can show our market that we're back to where we need to be. And that's what we want to do."

Link to SRTS's 5/23/19 B Riley conference..
http://www.wsw.com/webcast/brileyfbr3/srts

Side note: Although I don't think Joe mentioned SkinCure, that is who he's referring to (IMO).