Six Reasons I Couldn’t Be More Pleased by Our First EKSO Update

Keith Fitz-Gerald Nov 07, 2014
25 

One of the great things about Total Wealth is that we’re going to have the opportunity to revisit everything from our trends to our tactics and even the companies I recommend – beginning today.

There’s a lot happening with Ekso Bionics Inc. (OTC:EKSO), our “Human Augmentation” frontrunner. And I’d like to bring you up to speed on the latest developments.

First, the fact that a lot is happening is, in and of itself, a great thing.

Over the years I’ve seen a lot of potentially great companies get off to a good start, but then fall flat because “nothing happened.” These companies don’t set out to fail; it’s just that they haven’t got the management, the funding, and, most importantly, the client base needed to succeed.

Ekso, on the other hand, has all three, which means the company is moving forward.

You’ve got to see what else they’ve been up to…

Second, the company was recently profiled in Forbes, which in its article here chose to highlight the DARPA-funded military side of human augmentation rather than the medical aspects we’ve emphasized. No doubt Tony Stark of “Ironman” fame would have loved it.

Image courtesy of Forbes.com

Third, the company recently received its first National Institute of Health (NIH) grant to develop an exoskeleton for injured children in conjunction with Oakland’s UCSF Benioff Children’s Hospital. This is very significant because it will be proof positive that the technology is as scalable and transferrable as I’ve suggested it will be.

Fourth, the company was recently profiled on none other than one of my favorite shows, Varney & Co. on the Fox Business Network (click here to watch the clip). Obviously, I’m a little biased considering how fortunate I’ve been to be a part of Stuart Varney’s “Company” for years, but that doesn’t change the fact that Ekso appropriately received some fabulous national exposure at a time when the company’s rehabilitation efforts are taking off. It’s already sold, for example, more than 45 suits in the first nine months of this year, which is more than twice the total number of suits it sold in all of 2013. Meanwhile, SoldierSocks, a 501c(3) company that works with veterans, has established the goal of buying 80 Ekso suits in the next 36 months for veterans, hospitals serving veterans, and other similar health facilities.

Fifth, the company will be proactively filing with the FDA this quarter so that Ekso suits will receive marketing clearance under an entirely new “Powered Exoskeleton” classification rather than just the current Class I designation it holds today. This is really powerful. It could open up an entirely new marketing capacity. In effect, what this suggests is that Ekso is so innovative, the FDA has to create an entirely new category just to keep up.

And sixth, Ekso just announced a new licensing agreement with Ottobock, the largest manufacturer of prosthetics in the world. They’ll license their patented technology to Ottobock in exchange for royalty payments. That’s another stream of income for Ekso I’m glad to see.

So now what?

Here’s What’s Next for EKSO

The company has recently filed an 8-K with the SEC in which it’s amending the terms of a prior offering to purchase common stock via warrants at $2 a share to $1 a share. That should result in net proceeds of $28.7 million, which is enough capital to carry operations through Q2/2015.

Normally I wouldn’t be crazy about something like this. Warrants tend to be a real drag on stock prices even though they are an important source of early stage funding. They have this depressing effect on stock prices because they create what in industry terms is known as “overhang,” which means that prices tend to migrate towards the exercise price for as long as the warrants are in effect.

But, again, we’re not talking about a “fly by night” organization here. I think what we’re going to see is a situation where the company’s potential begins to dramatically accelerate. I expect significant top-line growth as a result, followed by bottom-line results that will, in turn, translate to higher prices.

Simply put, Ekso has built up a solid head of steam and is tapping into what may be the ultimate “Unstoppable Trend” – human augmentation.

If you don’t already own Ekso, I think it’s quite simply the most inspiring tech investment you can make today. By 2020, I think this tiny company which is currently trading at around $1.35 will hit at least $20 a share. You simply don’t see this kind of potential very often.

(By the way, if Ekso’s price does fall short-term, that’s a killer buying opportunity. You should have your “lowball order” ready based on my original instructions to plan on adding to the stock over the next two months 25% at a time.)

A Potential New Play in Yet Another “Unstoppable Trend”

Speaking of explosive profit opportunities, I’ve been doing a lot of reading about something called the “Lazarus” phenomenon. That’s what it’s called when a patient’s heart starts beating again by itself, after attending physicians have given up hope. More than 50% of emergency room doctors have witnessed it, according to the official journal of the European Resuscitation Council.

And that’s got me thinking about work being done by Dr. Peter Rhee and his colleagues at the University of Arizona. They are doing groundbreaking work in a radical area of medicine that quite literally involves killing you as a last resort… in order to save your life later.

I don’t want to spill the beans on the company I’m researching in this area just yet, because it’s not quite ready for your investment dollars (not until we see early results). But what they’re doing is stunning.

This is an advance that could mark an ideal play for Medical Breakthroughs – another of our “Unstoppable Trends.”

Stay tuned.

Best regards for great investing,

Keith

25 Responses to Six Reasons I Couldn’t Be More Pleased by Our First EKSO Update

  1. Noel M Sosria says:

    Keith: Thank you for such a great update!
    -Noel

  2. marv says:

    Thank you for your excellent insight into EKSO’s future—it has given me the confidence to purchase more shares———-marv

    • Keith says:

      Noel, Marv – thanks so much for the kind words and for being part of the family. While I am sure you’re already thinking about this, remember to treat EKSO like any other investment and use proper risk management. Although the company has got a fantastic future, you don’t want to take on more risk than you can handle with any one position – even EKSO. Many traders, for example, limit a single position to 2% of capital as a means of keeping things in line.

      Best regards, Keith 🙂

  3. Barry Sorkin says:

    Hi Kieth

    Thanks for the great update

    1. [] However on OCT 6th u changed that tactic to cancel the above

    Here’s what to do:

    Cancel any lowball orders you have to buy the other 50% of your EKSO position at 75 cents.
    Instead, plan on adding to your EKSO position over the next two months, buying 25% at a time, until you’ve established a full 100% position.
    That way you’ll defeat day traders who would otherwise love to separate you from your money.

    https://totalwealthresearch.com/2014/10/change-tactics-ekso-keep-ahead-wall-street/

    so are wwe now canclling the change and back to original tactic ??
    ————————————-

    2. Can u comment on GTOS shortfall in revenue , expect sequentil revenue increse next quarter and for the 2nd half Vs 1st half & yet succesfull drone test, new security contract here, and expecting new contract with overseas in early 2015 yet market really took to woofshed on missing revenue, still my 25 % trailing stop ,

    Was Revenue sy upriuse a shock to u and what do u think Re the future
    ——————————-
    3. Lazarus syndrome also called autoresuscitation after CPR attempts I believe , from what I read less than 40 reported cases but apparently is undereported, I will be interested to see what company is working on that and to what they are trying to accomplish, reason for it apperas unknown but something to do with hearts elkectrical system being self stimulated after failed CPR attempts or something like that, Maybe a company can figure out what the cpr did that eventually caused the electric ssystem to restart after it apparently failed

    Will be interesting to learn more about leading company inc volved with this with all the failed CPR attempts that occur

    Thanks again , Barry

    Thanks Barry

    • Editor says:

      Barry, great eye! Keith’s recommendation is still to plan on adding to your EKSO position over the next two months, buying 25% at a time, until you’ve established a full 100% position.

      That was an editor’s error that has been corrected. We apologize for any confusion.

      • Barry Sorkin says:

        Sir
        I should of said I love this service and learning alot , and not just ajk questions

        EKSO bought in 2 lots a total of 1500 shares at average price with commision of 1.02 so very happy & love what company wants to achieve

        ??’s on KTOS was not to be crtical just was for understanding , never would i expect all rec’s to be winners & never invest more than i could handle to lose

        Hopiung my 25 % trailing stoip holds up as is still below current price as is at $ 5.30 based on recent 7.07 high, I think company has good chances forwartd as keeps getting new contracts and one cant alwaays go simply by 1 miss in a finacial statement but need the big picture and sometimes that LT View’

        Have a great weekend, Barry

  4. antonio sanchez says:

    I bought 2000 shares at $0.94, I couldn’t be ,more pleased; thank you very much.

    • Keith says:

      Thank you for sharing that Antonio and for being part of the Family. I think EKSO is pretty neat myself.

      Best regards, Keith 🙂

  5. John says:

    Buy more EKSO at .75? That does not give me a warm and fuzzy feeling. Why not sell now and wait to buy back at .75? What do you know that we don’t?

    Can you please comment on the recent huge drop of KTOS due to earnings miss. Based on the research you do on your other positions, this drop should have not come as a surprise to you.
    Thank you.

    Sincerely,
    Becoming skeptical

    • Keith says:

      Hello John and thanks for raising such a good point.

      However, owning EKSO is not an all or nothing decision. Adding more at $0.75 is really nothing more than an extreme example of dollar-cost averaging. We’re talking about a stock that is still under $2 after all with the potential to go to $20 or more.

      As for KTOS, I’m not especially concerned. The numbers missed the “street’s” forecasts not management’s. So what the headlines should have read is “Analysts Got It Wrong Again.”

      Not to make light of the situation, but whether it’s EKSO, KTOS or any other stock, the street is obsessed with quarterly performance when things like defense contracts, for example, are multi-year undertakings. That means short term squiggles are buying opportunities if longer term contracts and growth remains intact as the case with KTOS.

      Still, this is a tough concept to grasp so I respect your skepticism. Every stock is not for every investor.

      Best regards, Keith 🙂

  6. M.W. says:

    Keith,
    Of course I would like to make a profit from a trade, but investing in EKSO was a personal decision in support of a company’s goal of providing greater mobility, independence and quality of living for “all walks of life”.

  7. Jojo says:

    I recently bought 2000 EKSO shares. I’m quite happy with my current return. However, My trading house had me sign a letter that I understood the risks inherent with OTC markets. Since it’s my first venture on OTC, I just wonder if there are ways to be protected against fly by night market makers or shady operators.
    Thank you.

    • Keith says:

      Hello Jojo. Thanks for sharing your experience. You raise a great point.

      There’s no way to completely eliminate risk as you know. Enron, WorldCom and Lehman were well understood companies before they blew up – or so people thought.

      I believe the key is to really have a handle on three things we talk about all the time: 1) make sure you’re aligned with the unstoppable trends we’ve identified and that you’ve done your homework; 2) pick the right tactics for the right stocks and objectives; and, 3) use disciplined risk management.

      Not coincidentally, we’ll be working our way through all three topics together here regularly.

      Best regards and glad you’re here. Keith 🙂

  8. Jeff Slepin says:

    Keith it’s great to see you focusing on disruptive technology in the healthcare field, which I agree is one of the six must-have sectors for the long term in our portfolios, especially given the aging population and lengthening lifespans, which people will be striving for products which will enhance the quality of life in the event of disease and/or keep us feeling young and vibrant in our latter years as we age. Great find on EKSO and I couldn’t agree more with your “prognosis”.
    Jeff

  9. Will H says:

    Keith… Great Job. Thanks!

  10. Shailesh says:

    Keith, what would be a plausible ‘low-ball’ price for EKSO?

  11. John Becker says:

    Keith….Do you think and have confidence that the officers of the company know how to make money ???….. say
    profits .

    I have been following a mature start up company [ MITEK}. …These folks are reporting revenue of over one million a month [ 12 mill or more p er year]…and still report operating loses…..and back to the well for more operating capital.

    Difficult to anticipate rising share price when profits are absent….. a great truth !!! Johnr

    • Keith says:

      Your point is well taken John. Thanks for being part of the Family and for taking the time to write.

      History suggests that every startup has a negative burn rate – meaning they spend more money than they take in – during the early days. Tech companies more so than others. Some, like Amazon, for example, can perpetuate the illusion for a lot longer. It’s trading at $304 per share and a forward PE of 324.89 despite having turned in only the tiniest of profits, and sporadically, at that.

      I have confidence that EKSO’s execs know what they are doing.

      Best regards, Keith 🙂

  12. joseph lee says:

    i bought ekso in all my funds. hope everything goes well.
    I believe they will go Nasdaq, THEY HAVE TO.

  13. Gary says:

    Just wondering if you really looked into the funding of EKSO. I do think their product is good, although they do have some stiff competition. But the biggest hurdle in my opinion is funding. Don’t you question at all the reverse merger that they did last January into an existing Chile shell company? Don’t you question that the merger only brought in $20 million in that deal? Based on their almost nonexistent sales, they will have to raise more cash at some point in time. How will they do that at a stock price of $2 with all those warrants and executive stock options outstanding without significantly diluting existing shareholders? I would LOVE to see this company succeed. I’m just skeptical they can do so with existing management not seeming to be that financially intelligent.

    • Keith says:

      Hello Gary.

      Thanks for being part of the family and for chiming in. Those are all logical, well thought out points.

      My take is that the company is no different from any other start up when it comes to the path they’re taking. I recall, for example, when Starbucks was a one room grinding shop and Microsoft was nothing more than a coding company run by a glassy eyed kid named Bill Gates. They lost money, too in the early days and, despite all odds, did very well.

      Best regards, Keith 🙂

  14. H. Craig Bradley says:

    Surprise Keith, “Human Augmentation” is now available in the civilian market at a steep price through luxury catalog
    Hammacher Schlemmer ( Holiday Preview 2014). Try “The Aquatic Trusters” to propel you along in the water at 3.5 knots
    It is only available in the United States to U.S. Citizens, as it also is a military item. The price is an eye-popping $31,000 ( Item # LP 12344 ( page #26) or online @ http://www.hammacher.com/Product/12344?promo=search&cmp=cel&trigger=ac&query=Aquatic%20Thrusters

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