I noticed that NURO had earning once again since somehow it is on my watch list still. What the company says and what the company does is two different things.
Here is NURO in a nutshell:
Step 1. Revenues decrease..decrease..decrease...
2. Then they give up completely on their last product and promote the new one as the groundbreaking one.
3. They somehow raise capital with a massive pipe at a fraction of the current share price with options to buy more even lover leaving a new cap that the stock can never get over.
4. The new product revenues never makes up for the one they call their legacy business
5. Insiders an board members make more in earnings than the revenues coming from the new product draining cash flow. (Much of the PIPE does not even make it to R&D ...straight into executive pockets)
6. The stock keeps on falling and they reverse split
7. Back to step one
I have got to hand it to Shai, he is a great business man. I have never seen someone abuse the capital system and individual investors for so long without throwing in the towel and letting the company go bankrupt.
In reality, Shai and even more so the Board members need to go to jail for ignoring their fiduciary responsibility.
Next your congress men have to for taking campaign funds from people like Shai to allow what Neurometrix does to be legal and ignoring their fiduciary responsibility.
The sec should look into insider info being given out.
It really Seems like nuro helps sell a secondary by offering up some news it's about to release to the buyers. Just happened again.... coincidence? Who else would fall into the nuro trap after their history unless the entity found a way to sell short most of their shares prior covering with the secondary.
Good times same store sales is about the best on the market. How did it stay so low for so long? It's still low by the way. I'm thinking 10 dollars. At that point they do a cash raise and go into nationwide expansion
Shai and company are not interested in a sale and never have been. I questioned them back a few year when trading with a market cap of 10 million and 20 million in cash, and a few hot products that were being pumped like the DPN check. Yes, half of cash and a potentially hot product. Most definitely the company could have gone for 35-40 million back then. You could look back at my messages and see that I sounded like you back then.
Since, they drained their cash and done two dilutions. Stay away the stock is bad news and either management knows nothing about what is good for shareholders or somehow has friends who profit from the stock going down in exchange for facilitating the next cash raise.
Shady deals to raise capital. Neurometrix was once a quality company with a quality product the NCStat then insurances cut them off and back paying doctors to use the product got them in trouble. Since then the company takes on a new product every few years, pumps it up as the next big thing, then moves on to the next when it fails. Revenues keep on decreasing, cash gets burnt, the stock falls, they reverse split, dilute shares 600% or so and repeat. I don't see how all of this is possible without a horrible board and ties to a short hedge fund. The hedge fund drives down the stock on the short side and covers during the next bout of financing. Who else would be so masochistic to fund the company unless there was another way to make money?
The only reason NURO can skyrocket to 5+ is if someone with money wan't to manipulate it to make more money. There is a reason for Neurometrix to make such bad deals to acquire financing. Placing them below the market with warrants and the backup ability to reprice some. This is horrible for any shareholder.
Neurometrix is like a cornered dog. They will do anything to survive and pay salaries at a loss to shareholders. Kind of like a sharholder who realized they made a mistake who will also pump and do anything hoping to stay above water.
PLNR has been down and out for a while. Its one of the few bright spots in the microcap sector that you find a stock upping estimates, earning money, and not up 300% or so. I would expect the stock to outperform and surpass the $2.50 price target in the near future. I'm thinking it will trade closer to $4.00 going into the next earnings release barring any overall market collapse.
Go back through my messages on NURO for years. I was once positive on NURO years ago but now realize how shady they are. The company constantly replaces one idea for the next with the new being a worse failure. The NP Stat had potential but the new product is nothing to write home about with very little IP. It's more like a specialized ab belt using the same neurostimulation. Executives are paid like the company is still doing 30+ million in revenues and the board gets way too much for their lack of a fiduciary responsibility. Now it's just too much of a coincidence. The company has to have resorted to giving out illegal insider information in order to entice groups to invest. The groups that invest are no doubt on the short side taking advantage of warrants or convertibles which only leads to more pain for shareholders who "I guess deserve it for not doing DD or expecting things to be different this time."
Look at ADEP for an example. Rob Cain, part of the Hale group, was also gifted a bunch of options upon his hire.
Gift shares are just part of this crummy capital system and it would be dumb to buy shares when you can get them free. Don't hold that against Mashnisky but against our system in which some corruption has become accepted as common practice. Our market system allows a company to sell itself the public and gift it back over time through options and restricted shares.
At least now Novatel Wireless is led by shareholders that will benefit greatly by price appreciation. The goal not just how much cash you have on hand so you can keep on paying salaries. Hopefully management will adopt a cash is king mentality... if so we will see substantial return.
its still pretty pathetic that this company burned through 140+ million dollars while the stock fell and reverse splits and dilution took place to end up with everything the prospectus says. If you are a current shareholder you should read it: Going concern, will likely need to raise more cash, and the Sensus and DPN Check only brought in 1.5 million in revenues last year which is less than the salary of the top five guys. All other products are being phased out. Don't sue the company if you loose everything because the prospectus tells you to the worst is possible. Yes NURO may run to 4 or so but I am pretty certain what the end result will be as funds dwindle.
Think about it. Short but not how you think. The covering will come from the conversion of the preferred and not something that would drive up the price.
Here is what I think happens which leads to the ability to find financing after all this time:
Shai tells the funding group the news coming out, the funding group agrees with Shai on a good price around market, and the funding group shorts into the news after an initial jump for an immediate profit. Shai and execs get the funding to pay the close to half a million dollar salaries and the funding company gets an instant gain but kills any rally in return. In fact the opposite occurs as all the new investors gradually give up on the company driving the stock lower leading to the next reverse stock split setting up for the next shady dilution.
Looks like NURO stabilized may even see a bounce up. If I am right about the new investor being a part of the manipulation they may be smart and let the rest of their shares ride a bit and make a bit of money. They may partake in some of the buying to get it going. I put a few Pennys in today for a gamble.
I'm still waiting on NVTL to show up and am hoping on positive forward guidance in the next quarter. I'm not jumping into NVTL again until I see positive forward guidance on the next quarter where some has already been realized and not just the end of the year.
PLNR is looking good and could be an opportunity here. Planar Systems is doing exactly what I am hoping to see in NVTL. I'm just surprised it has not jumped more this morning. Revenue over a hundred million, a few analysts covering it, earnings (not just less loss) keeps on increasing.
The upgrade price was 2.50. The conservative upgrade was probably why we saw little price movement. That could be hit at any time and surpassed. Then what does it make PLNR to the analyst?
We will see some suitors window shopping late summer as we enter the back to school season. Sycamore is smart. While they may not be the suitor the cash infusion has a multiplier effect into Aeropostale's market value in a sale.
The settlement is completely idiotic but just let them go in peace. NVTL share price will perform better once Wall Street forgets Peter or insider trading was ever a part of Novatel Wireless culture. Bringing any more attention to the negatives not going to help.
The advocate group for shareholders is not just any advocate group. They actually had enough power to get things done, replace management, and are now running Novatel Wireless from the inside.
The settlement sucks but having the old management team sucked worse. With Peter out the company has sale as an option which should bring near term gratification as NVTL trades toward a pre-acquisition price in the 4's. We can already see it happening. Look at the trend over the past month. The trend is your friend.
We are on a upswing a few 2-10 cent up days is usually followed by a big day. The replaced executive team is a reason now we just need the move. Two bucks is nothing. The new shareholders have a cost basis of about two bucks and that is why they may sell the company at four. This is still way undervalued compared to its competitors. NVTL M2M business is actually growing faster than SWIR. I'm still expecting $2.50 and more pretty soon.
I agree that the share price should be in the teens next year with the new culture but the advocate group bought their shares around 2 bucks. If Novatel gets an offer in the $4's they may take it and avoid chance. A bird in the hand is worth two in the bush. I am assuming that more investors will catch on to the progressive goals of the advocate group and the share price will continue to rise into the $4 range leaving a $4 offer unacceptable. A $4.00 offer while Novatel Wireless is trading in the $2's is likely if another company is willing to take a chance on Novatel here.
Ballard is teaming up on European forklifts with their fuel stacks and IP. This is likely to prepare for a US entrance once the exclusive license with plug is over. Hopefully Plugs stack the acquired with their 4 million IP purchase can compete.