It wont go to 20 cents because it never does It has a history of trading at a market cap half of cash. As cash trickles away it trades down to around 55 cents or so where they do a 6 to 1 reverse split and take the shares to 3 dollars where it trickles back down to about $2.50 where Shai does a cash raise under market at $2 bucks with a dilution a multiple of shares outstanding on top of issuing warrants killing the stock even more. It has happened multiple times and putting a cap on any gain as the warrants would be exercised.
The tricky thing is that the fundamentals look great mostly trading less than cash and the potential for a breakthrough product that has always become broken. Neurometrix is a complete trap.unless you really know the history and have been trading or observing it for close to a decade. My father, a rhematologist, owned the stock and purchased the NC Stat in his office close to its peak, comparable to being thousands of dollars a share today, but sold and told me they were crooks. Insurance never covered the cost of the consumables and it was a loosing venture even the company promised otherwise. This is a true story and how it ended up on my portfolio and then only mostly on my watch list once I became smart enough to realize their game.
The only thing that surprises me is how the stock has stayed for so long trading above a market cap half of cash and sticking above $2.00. For about four years it stock to a market cap half of cash and the past year and a half it actually traded closer to cash. Historically it has been overvalued for a year and a half but it looks like such a value. I would never short it because you never know if someone will manipulate it up to make some money rather than down.
Just stay away... look at all the money people are making around you in real companies in this market. Buy SPY and you will have made any money you lost and then some in a decade barring some major event.
You've changed so we've changed is the slogan.
Buy now before Wall Street changes to bullish. If the campaign is taken well we could see a quick double or even triple.
I sold yesterday and sucked up a loss as well. The proxy said holders as of 7/14/2014 which does not mean that recent investor group. It might be the last investor group or the one from the time before. There would be some good tax loss selling if its the one from the time before that. They lost 98% or so of their value when every thing else in the market seems to go up.
All the going concern and 140+ million lost to date is just too much when only $1.5 million annual is being brought in by the new product when they once had over $30 million. I'd be concerned about getting any future financing when the company has a history of failing. I'm glad I have stayed away for the past few years from investing in NURO and learnt my lesson that the company always outdoes itself when you think they cant give one more beating to their shareholders. People just don't buy Neurometrix product without insurance coverage.
Investing in NURO with a proxy like that is different than investing venture capital money in a potential new product. This company has a history of failing over and over and don't expect anything different through their words since they just dont follow through. Once that registration goes through and the 6 million new shares are available to sell it could get ugly.
American Apparel trades with only 60 million in market cap less than ARO and has 240 million more in debt. You could say that ARO trades at a discount of 180 million to APP. Aropostale is valued far less than that company right now if you do a correct deduction.
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.
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.
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.
Good luck to you. There is always a chance. I'm surprised NURO has not been taken on a run to ten bucks or so since I have been an investor/onlooker. It always seemed like they had a story to sell and a small float. Hopefully you'll get lucky and get one and I'll wish I was invested.
The funding group would have shorted from 3 bucks down to this level. Not because of being negative on Neurometrix but for the instant gain that they "probably" assumed from insider information shared to gain the funding in the first place. There may not be overall public evidence of something shady going on but its statistically improbable that something is not. I think if the SEC investigated they could follow a paper trail and discover something.
The funding group shorts to solidify the gain on the spread between the market price and the 2.05 conversion. There would no need to cover the short at market because the preferred conversion covers it. Now any sale above 2.05 is profitable and puts a cap on the stock. New retail investors drug in by the news will continue to sell if the stock does not turn up creating new selling pressure and drive the stock down. So its not the funding group that pushes the stock lower from here but new short term retail investors hoping for a quick gain which instead sell for a quick loss.
The only hope for a long investor is that something like China news occurs soon, the new funding group has sold short all of the shares covered by the preferred, and Shai is comfortable with his cash raise and will not do it again the same way on the news.
The board of directors are happy lap dogs for Shai and all decisions show that they disregard their fiduciary responsibility completely and let investors get taken to the cleaners.
In the past Shai was comfortable with a 20 million dollar cash position and raised every time that dwindled down to around 10 million. Now it more readily dwindles down further since it is harder to hook new investors groups since the stock history is pathetic and has no story to sell. I would hate to think Shai will use China to do another sucker punch with a dilution.
There are many better places to put your money.
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.
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 stock trades solely to line Shai and company pockets. I am certain that the news was leaked as a hook to raise capital. Stay away for anything more than a day trade. Whatever you do don't pump this garbage. It's not nice to sucker someone into the most disrespectful to shareholder stock I have ever seen in 25 years of investing in microcaps. Don't look at the fundamentals w hen doing DD. Look at how many reverse splits and cash raises multiple times the shares outstanding they have done.
Wearable technology might trick a few with the popular key word. It's still nothing more than an ab belt. Take advantage of any gain you get on this. Nuro management and board should be put in jail and no self respecting investor who did DD would ever own this stock long term.
With a float under 10 million and as the rollout of hydrogen fueling stations expand hydrogenics (hygs) stock will probably be the greatest performer in the fuel cell sector this year.
Hydrogenics (HYGS) is the cheapest fuel cell company out there and will greatly benefit from the massive rollout of hydrogen fueling stations and excess energy storage as hydrogen. Plug is not worth it but HYGS would make a good Ballard aquisition.
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.
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."
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.