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EKSO: What to Do After the Latest Numbers

For all the success we've had together and the countless recommendations along the way that have given you huge profit potential, we've hit a stinker.

To say I'm disappointed with Ekso Bionics Holdings Inc.'s (Nasdaq: EKSO) latest numbers would be the understatement of the year.

The company reported financial results for the first three months of 2017, and revenue dropped off a cliff from $8.5 million a year ago to only $1.4 million this year. Granted, last year's figures included recognition of a deferred $6.5 million worth of revenue due to an accounting change, but that doesn't change the fact that sales tanked.

What's happened and why makes sense to me given where they are as a company and the pivot to more commercially oriented products like the EksoZeroG, but I don't particularly like it. My expectations, like yours, were for substantially higher prices this far into things.

It would be easy to throw in the towel and I wouldn't blame you one bit if you did. But – and I've got to take a deep breath as I type this because I am acutely aware of the trust you place in me – I'm recommending you hang on if at all possible.

Doing so shouldn't be difficult if you've properly controlled risk by keeping your position to 2% of investable capital or used a series of lowball orders to average in, for example. If you're over that limit or losing sleep because of the way Ekso's trading, then think seriously about paring down your position until you're at more comfortable levels.

Looking ahead, the company still has a lot going for it despite some very tough numbers, including an $11.7 million financing that provides much needed working capital and a new director named Howard Palefsky who has valuable experience in the life sciences and wellness industries.

Most importantly, I remain confident in the company's leadership. It's apparent to me based on recent conversations with CEO Thomas Looby and CFO Max Scheder-Bieschin that both men are acutely aware of what they've got to do and how they've got to move the company to do it.

In that sense, the road that they've got to travel is very similar to other big names you know. For instance, investors forget that Apple Inc. (Nasdaq: AAPL) was on the verge of bankruptcy in 1996, yet has a valuation of nearly $800 billion today. That Texaco went feet up in the 1980s and is now part of Chevron Corp. (NYSE: CVX), which carries a $200 billion price tag. Airbnb's creators lived on cereal and today it's a unicorn with a $25.5 billion valuation.

Sometimes, that's what speculative recommendations like Ekso come down to. Either you believe in what they do or you don't. There is no middle ground.

However, for some stocks, there's definitely a "dumping ground."

That's the case for Snap Inc. (NYSE: SNAP), which tanked 23% in after-hours trading following earnings that failed to meet lofty expectations stemming from the "red-hot" IPO I urged you to avoid at all costs. And I'm glad I did, given that the company managed to lose a staggering $2.2 billion during its first 90 days as a public company…

…after the underwriters made hundreds of millions.

…after 26-year-old founder Evan Spiegel got a nearly $600 million bonus.

…after the markets gave the company a $6 billion haircut.

No doubt you see a pattern here, just as I do.

IPOs sound like a great deal because you're getting in ahead of the herd but, in reality, retail investors are almost always last in line.

An $80 Billion Cover-Up? Under the watchful eye of Congress, the government will soon be implementing a controversial plan that threatens the retirement of millions of Americans. And they’re using an obscure loophole buried in Title 29 of the U.S. Labor Code to do it. If you have a 401(k), IRA, or any type of retirement account, this could cause you to miss out on $68,870 or more. Learn more

The post EKSO: What to Do After the Latest Numbers appeared first on Total Wealth.

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About the Author

Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean. In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.

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  1. Robert Pacione | May 16, 2017

    Hi Keith! I wouldnt be worried. This reminds me of a smoke and mirrors situation. This company has a huge future. Wallstreets head games are all over this. To easy to see. People today. Within the societies that cannot see the future as we do. See an expense not necessary as of yet. Those bionic units are incredible and they are at the for front of it all. They are just a little to a head of schedule. Society is just not ready completely for it.

    Mark my words. They will be used in the future in many industries within the next 5 years. Sliw roll as i call it. Just like when i was 19. That was 23 years ago. I asked a tv cable repairman about talking through tvs. He said they have that technology already. Now! Look at it today. It is everywhere. That and those moments are all apart of a Human Algorithm.

    Tale Care
    Robert F. Pacione

    • Keith | May 18, 2017

      Thanks for the kind words, Robert.

      This is a very tough situation all around. The company has breakthrough products yet the markets are not recognizing that. The markets – meaning Ekso's customers – need what they have on offer but the insurance companies haven't caught up to the medical potential. And, so on.

      On the bright side, all it takes is a single "win" to break the logjam often times and I believe that's coming. Let's just hope sooner rather than later.

      • Keith | May 18, 2017

        Thanks for being part of the Money Morning Family and best regards, Keith :-)

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