NURO is burning cash quite fast.
There is no official guidance about revenues and profits near term/middle term
They may need another stock offering.
Their operating margin is around 100 USD/Sensus device
Revenues are growing fast.
It seems to be possible for them to sell during the first quarter 1300 - 1800 devices and if the growth pace holds
up to 6000 within the second quarter and 30,000 within a year, if things are turning really well.
They gave no guidance, if the sell only 6000 /year, their loss will not vanish, but come down. Any revenue above 20,000 units would be very good and give NURO a new valutation.
Sentiment: Strong Buy
NOT sure what all you people are on. This stock took off in October, November and even December a little bit. I made $16,000 in ONE day and almost $20,000 the next day. THEN the insiders shorted it and the bottom fell it. What a sham and a shame because their devise for Neuropathy is VERY promising and could help millions of diabetics with that horrible foot pain. The only thing is there really is NO way to properly get the word out. If only Carl I or Warrent B would step up to the plate and buy 100,000 mile shares to mention it or something
Sentiment: Strong Buy
well if we assume a rate of 650 Sensus in 15 days -- 43/day * 0.8 conservatism * 6weeks remaining * 7 days / week = 1450 + 650 already sold = 2100 SENSUS q1 * 110 operatin margin = 230k gross profit form SENSUS in Q1. Trying my hand at making some estimates, just fyi I m pretty new to investing so just putting it out there
Conservative estimate for Q2:
50 Sensus / day * 12 weeks * 7 days = 4200* 180 rev/SENSUS = 756000 + 600000 (DPN) + 500000 (LEGACY) *0.64 =1.2M gross profit - 2.2M expenditures = 1M loss.
Aggressive estimate Q2:
60 SENSUS / day= 907000 + 700000(DPN CHECK) + 600000(LEGACY) *.65 =1.43M gross - 2M expenditures = 600k loss
Cant really see any profitability until maybe Q4 or Q3 unless DPN check or SENSUS spikes alot. that said i think the long term picture looks really strong for NURO and hopefully the valuation will spike even before we hit profitability. even at a cash burn rate of 1.5M they have enough to last until 2015 without an offering. Hopefully, the SENSUS sales will be really strong Q1 with only more strength after the Q2 launch
Also as an uneducated question, any idea on if the operating margin can improve over time? the SENSUS is supposed to sell for ~800 but i saw it selling (sale price) for 350ish on one of the sites when they were first sellling SENSUS. Once it picks up traction is it possible we could see the operating margin double?
at this point in time the co states they have enough cash to operate all thru this yr and part of next so let's let it play out, and not worry about another stock offering since we just had one recently. Obviously we'll know how many sales they get as each quarter passes.