Ekso Bionics Holding (OTCBB:EKSO) Spikes Out of the Blue
Since the start of April the stock of Ekso Bionics Holding (OTCBB:EKSO) has been unable to make a more pronounced move up the chart and has instead been sliding downwards. All that came to an end during yesterday’s session.
For most of the trading day the stock was slowly but surely climbing up the chart but with just a couple of hours left it simply exploded reaching a high of the day of $1.88. Although the ticker took a step back and at the time of the closing bell traded at $1.77 it was still over 25% in the green. Nearly the entirety of the daily volume of 2.1 million shares was traded during these last hours.
The performance was extremely positive but the problem is that it wasn’t supported by anything immediately obvious. The last PR published by the company was published on Tuesday and it announced that EKSO will be exhibiting at the 4th International Spinal Cord Society (ISCoS) and American Spinal Injury Association (ASIA) Joint Scientific Meeting that will taking place May 14-16. Is this enough however to explain the sudden upwards move?
EKSO is far from the typical pennystock. They are working on several government projects while their financials boast numbers rarely seen on the OTC market. The recently filed quarterly report showed that at the end of March the company had:
• $21.1 million cash
• $25.5 million total current assets
• $6.7 million total current liabilities
• $1.7 million revenues
• $4.1 million net loss
EKSO are still incurring sizable losses but the reported results for the quarter showed improvement over the same period last year. The company shipped 16 of its robotic units compared to the 12 for the first quarter of 2014. As a whole they have sold or rented 125 medical devices. The massive cash reserves should be enough to keep the company going for quite a while.
Recently the company has enjoyed increased media presence talking about their exoskeletons geared towards the construction industry. Several analyst agencies have also initiated coverage on the company with the latest one being H.C. Wainwright who gave EKSO a $3 price target. Previously analysts at Sterne Agee CRT gave EKSO a “buy” rating and a $1.75 price target while in a research note published on March 5 Ladenburg Thalmann gave the company a price target of $3.50.
Ekso may lack some of the glaring problems associated with pennystocks but they are still a volatile choice for investment. We will see if the stock will be able to keep the price gains from yesterday or will it relapse into a series of corrections.
