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Here’s an example of one of our reports of a stock that has gone up over 100% in my portfolio – a Triple-Digit Winner!
This gives you an idea of the type of small-cap research we offer. After reading this, reach out with any questions to keith@investingwhisperer.com.
EDITORS NOTE: This was the original note I sent to subscribers when I first bought MYOMO at 83 cents/share. This US med-tech story was all about its proprietary product & technology—in crude terms, an electric arm brace—getting CMS insurance approval throughout the USA. That happened in November 2023.
I have since added to this position all the way up to $3.06 and continue to believe it can be a $500 million+ market cap company in the coming years. As of today, Dec 4 2023, the stock is a 5-bagger for subscribers, trading over $4.
If you want our full updated report on MYOMO, please email jenn@investingwhisperer.com with the Subject line: Please Send me the updated Myomo report
PORTFOLIO PURCHASE:
MYOMO MYO-NASD
I have purchased 30,000 shares of MYOMO MYO-NASD at 83 cents per share.
Myomo makes and sells an electromagnetic arm brace, (picture below) that picks up brain signals and allows people to have some controlled movement in their paralyzed arms.
This is leading edge tech! And it’s FDA-cleared in the US and CE Mark (Europe) approved. They cost US$43,000, which isn’t cheap, but revenue was US$15 million in 2022 and is expected to be US$18 million in 2023 — 20% growth. Backlog is growing more.
They have US$9 M cash, no debt and net cash burn is about US$1.5 million per quarter. The BigCatalyst — every junior stock needs a catalyst to go up; just having a good story and being cheap is not enough—is that it could receive US health insurance coverage in late Q4.
Myopro is working with CMS—Center for Medicaid and Medicare Services — to get this covered not as a DME — Durable Medical Equipment — but under a new designation. If this works, the stock will quickly rerate much higher. Though it’s possible CMS only gives them partial payment. There is a small chance this doesn’t happen until early 2024 as well.
There are several insurers in Europe—especially Germany—who now cover Myopro product.
So this is a working product, a real business that serves a real need like nothing else—and it’s cheap. And in health care stocks, it’s all about US insurance. The Street rarely cares about juniorbiotech or medical device stocks unless they are covered by US insurance.
With 20 M shares out, the market cap is $16 million at 80 cents and $9 M cash = EV of $7 million.
The fundamentals support my purchase price here, and the US insurance catalyst gives me a 3 to 5 to 10x upside.
Only one broker covers the story and you can find that in the Members Forum under Keith Musings. It’s a detailed initiation report and if you like this story as much as I do, please go read it. Other than me getting us a call with management (I’m working on it!), I can’t tell you the story any better than that report does.
The technology was developed at MIT and Harvard Medical School. It picks up weak nerve impulses from the brain and allows the patient to move elbow and wrist. It gives a much more precise movement than spring loaded braces. Myopro does a cast of each patient and it’s a custom fit.
They were selling through orthotics distribution channels, but since 2019 have been selling direct and working with patients directly to get insurance coverage—with some success, as revenue numbers show.
It’s estimated that just over 1.5% of people in the US-more than 5 million people—live withsome form of paralysis. It could be stroke, spinal cord, cerebral palsy or multiple sclerosis oran accident of some kind that causes this.
A pediatric version of their product is expected to get approved by the US FDA in early 2024.
MYO is also going international now, with an initial license fee in China received and China’s FDAis expected to approve it late 2023. Australia’s National Disability Insurance Scheme or NDIS,recently started paying for MyoPro.
A recent financing at 35 cents (and I’m close to one of those 2 funders) gives the company a cash runway to Q4 24, assuming no growth. But should the company perform, the stock can be a highly asymmetrical winner for me.
You will see the stock got CRUSHED in the last 18 months-$13 to 35 cents. The explanation I got was:
- 2022 a horrible year for anything small cap or health care related
- Moving forward on CMS approval (US insurance) stalled
Sales growth stalled as they switched business models to more direct selling and not so much via distributors Now, both product sales and backlog are increasing, and international expansion looks a bit stronger, and two small cap funds have given them enough money to make it through to the promised land of US insurance coverage.
Keith Schaefer
I have one other med-tech/biotech junior with its FDA date this month – if successful, this will increase its TAM – Total Addressable Market – by 10x. The stock should have a huge response. If you want to receive this one subscriber-only update for FREE, sign up below:
