Ekso Bionics Holdings, Inc. (OTCBB:EKSO) – Moving Up Once More
At the end of February the stock of Ekso Bionics Holdings, Inc. (OTCBB:EKSO) was sitting around 7 dollars per share but after months of constant sliding it dropped down to its new 52-week low of $0.753 at the start of this month.
Fortunately for those who believe in the potential of the company the depressing trend was finally broken when on October 2 EKSO announced that they have been selected by Boston Dynamics to develop technologies for DARPA’s Warrior Web Task A project. The fact that last year Boston Dynamics were acquired by none other than Google Inc (NASDAQ:GOOG) made the news even more encouraging.
Just four days after the announcement EKSO was able to climb back to a close at $1.49 but such prices proved to be too tempting and a period of profit taking quickly pushed them back to a low of $1.06 registered last Tuesday. On Wednesday another PR was published this time announcing that the Jesse Brown VA Medical Center in Chicago had ordered three EKSO GT(TM) robotic exoskeletons.
The article once again propelled EKSO upwards and for the last three sessions they have recovered all of the recent price losses. The performance of the stock on Friday was especially positive taking into account the fact that for around two hours of the session the whole OTC market was suspended from trading by FINRA. Despite the reduced trading time investors were able to exchange over 1.5 million shares which resulted in a dollar value of $2.31 million. Thanks to the enthusiastic buying EKSO gained 20% and closed last week at $1.52. How long will the excitement last this time though?
The fundamentals of the company are a bit more stable than what is common for the pennystock market. They finished the second quarter of the year with:
• $10.9 million in cash
• $15.3 million in current assets
• $6.1 million in current liabilities
• $1.1 million in quarterly revenues
• $4.3 million in operating loss
The significant cash reserves are enough to sustain their operations until mid-2015 but after that EKSO might be forced to look for external financing and this could lead to more dilution. The company is still logging in heavy losses while the accumulated deficit has surpassed $63 million.
EKSO may offer an appealing product that is rather unique but the risks around them should not be underestimated. The stock is extremely volatile and relies on positive news to maintain its upward chart movement. Left on its own the stock could relapse into another series of profit taking. Do your own research, weigh all the possible outcomes and adjust your investment accordingly.
