From the first moment it came to my attention, I've been as consistent as I have been emphatic - EKSO Bionics Holdings Inc. (OTCBB: EKSO) is a "buy" despite volatility and price drift in recent months that have given many investors pause. There are two reasons why:
1. It's entirely normal for a company Ekso's size.
2. The company has continued to expand market share that will ultimately translate into higher earnings and share price.
Now there's a third.
If you don't get into the stock now, you could lose the "first mover" advantage that you've had so far. Worse, you could miss out on another double - Ekso's second since I recommended it.
You see, EKSO's just hit a landmark that tells me the incredible growth potential we've had to ourselves won't be a secret for much longer.
Analysts Couldn't Ignore This Earnings Report
Once you've learned how to do it correctly (like we're doing together), evaluating a company for investment potential isn't rocket science. There are usually any number of things that point to a bright future including savvy management, a clear vision, an awesome product, conservative positioning, and consistency.
Really taking things to the next level, though, requires something else - fabulous earnings. That's because they're the ultimate litmus test when it comes to potential.
Take EKSO's latest quarterly earnings report, for example. The company announced on March 17 that total revenue for the fourth quarter of 2014 was $1.5 million, up 87.5% from the $0.8 million achieved in Q4/2013.
For most small companies, this is usually a one-and-done phenomenon, meaning that they have great numbers for a quarter or two and only in one segment of the business. They try to be all things to all people, so they wind up overextending and, more often than not, falling apart, taking their investors to the poor house.
The real winners, though, usually have great specificity and a narrow product/market concentration. So you see those gains translate into a broad base at every level of operations. This is where EKSO stands out...
I was thrilled to learn that revenue from EKSO's medical devices was up from $0.5 million to $0.9 million, an improvement of 80%. Engineering services revenue was up 100% year-over-year, from $0.3 million to $0.6 million.
Operating expenses were up 106% to $5.4 million, but even that's good news when put in context. The increase was thanks mostly to labor-related costs: EKSO is expanding its work force in preparation for a surge in demand for its products.
At the same time, I think it speaks volumes about management integrity that EKSO voluntarily paid out earned bonuses to its employees for the first time ever in 2014, because it means the bottom line benefits are shared, not hoarded.
Shipments continue to surge, with 250% more devices shipped in 2014 than 2013. Here, too, the growth was geographically widespread. Shipments to Europe, the Middle East, and Africa were up more than 300%, a terrific sign that the company is doing what it needs to in order to penetrate foreign markets. Growth was also excellent in North America, at a 150% increase year-over-year.
Now I've been telling you that this kind of news will not go unnoticed for long. It was a matter of "when," not "if," others picked up on what we've known all along.
So I wasn't in the least bit surprised to see none other than Sterne Agee kickoff coverage with a "buy" rating and an initial price target of $1.75 per share.
That makes them the second firm this year to issue a "Buy" rating for EKSO. I know $1.75 is only 19% above where the company is trading as I write this and far below the $3.50 Ladenburg Thalmann has set out, but that's not the point.
Here's why their attention is so important...
Your "First Mover" Advantage Could Be Gone Next Week
What matters is that Sterne Agee and Ladenburg Thalmann are both old-line firms. The former was founded in 1901 while the latter set up shop in 1876. You simply don't have that kind of longevity nor pedigree by making stupid decisions.
When Ladenburg Thalmann recommended EKSO on March 5, 2015, the stock closed 3% higher on the same day. When Sterne Agee issued its "Buy" rating on EKSO, the stock inched up another 3%.
All told, EKSO is currently trading 56% higher since I recommended it to Total Wealth readers last October, and it's shot up more than 23% since Ladenburg Thalmann broke the dam of institutional interest.
Score an Additional 655% Gain with EKSO by Moving Today
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For those of you who have already invested in EKSO in the full spirit of our recommendation - buying as soon as you received our free report and dedicating no more than 2% of your capital to the trade - you're in for some wonderful news. You may be in for your first double in a matter of weeks or months - terrific! And if you bought back in October, you'll be set up to experience your second double in short order. Even better!
If you're just considering getting in now, I urge you to act as soon as possible. I'm still projecting a price of $21.85/share for EKSO by 2020. That would be a gain of 1,310 % from today's price.
If you wait for EKSO to double again before investing, you could be staring at something that's more like a 655% gain - still very powerful, but a steep price to pay for hesitating during these crucial months.
It's no surprise that analysts are only becoming aware of EKSO's promise six months after we started this journey at Total Wealth. I've told you how analysts are terrible stock pickers before. Generally speaking, they only know how to react to data - they don't use our methods to profit from "Unstoppable Trends." They can only bet on the winning horse when that horse has already won.
Now, seven months after our EKSO Bionics stock recommendation, they're late to the party again.
Just don't be late with them.
Editor's Note: Keith will continue to give updates on EKSO as it continues its remarkable journey, but his original insights on the company are still as pertinent as ever. In case you missed it, you can find Keith's free report on EKSO - and all the details behind his price projection - by clicking here to sign up for Total Wealth - it's free!
About the Author
Keith is a seasoned market analyst and professional trader with more than 37 years of global experience. He is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes hailed him as a "Market Visionary." He is a regular on FOX Business News and Yahoo! Finance, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, and MarketWatch. Keith previously led The Money Map Report, Money Map's flagship newsletter, as Chief Investment Strategist, from 20007 to 2020. Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.