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A Viewer Pick--ZYXI - A New Stock with High Growth Potential!
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Viewer's Email to me on why ZYXI is a stock to consider...
He writes...
Here is my analysis of ZYXI...
-The market does NOT yet understand this business model and / or the phase where this company is in its development. That’s where the relatively high short interest of 27-30% comes from.
-the stock moved from the OTC to the NASDAQ in 2019 or 2018. Few analysts are covering the stock. The have set PPS targets of apx. 30.- to the stock. I think they will up their estimates dramatically during the Q3 and Q4, 2021!
-monopolist in its field, that is non-opoid pain relief. High margins, 75% apx, so increase in orders will lead rapidly to increasing bottom line cash flows / earnings per share.
-Hiring sales reps in a VERY rapid pace. Due to COVID they have been able to attract even more sales men. In the beginning they cost money --training, etc.
-The amount of sales reps have appx quadrupled in 2020. Now over 500. The 'hiring pace' will decrease. EOY 2021 the number of sales reps will be apx. 600. The end goal is apx 800 in the future. By that time they will have covered all the US regions.
-In 2021 they expect revenue to more than double and end up in the 125-150 million range. And further exploding in 2022 due to the expanded and more experienced sales force
-With all the new sales reps they expect that by the end of 2021 the average revenue will be just below $400,000 per sales rep.
-In my excel model I conclude an EPS of $0.30 in Q4 2021. Combine that with a growth of apx 100%. A P/E multiple of 30 will put us in the $35-$40.- range.
-The amount of outstanding shares is very stable. CEO still owns apx. 54%, so he has a huge skin in the game
-This whole exercise / calculation is WITHOUT taking into consideration the future sales of the Blood Volume Monitor. Note the Press Release of January 6, 2021. In one of the CC in 2020 they have indicated that this is a 3 BILLION market in the USA
-With the current sales reps plan they cover the whole USA. Expansion into Europe is also in the cards.
-ZYXI is debt free and has a large cash position
-The stock has a short ratio of apx 27%. Surprising earnings, of which I expect to see, might set off a covering reaction
-the amount of outstanding shares is apx 34 million and in March 2021 the company released a buy back for $10 million.
I honestly do not see why this stock will not triple in 6 months and even be worth more than $100.- somewhere in 2022.
I know I might give the impression of being exaggerating, but I really am not. I followed this company for many years. And we are NOW at the moment. I expect the stock to trade at a huge discount versus fair value.
From a HMBL Investor
The Netherlands
He writes...
Here is my analysis of ZYXI...
-The market does NOT yet understand this business model and / or the phase where this company is in its development. That’s where the relatively high short interest of 27-30% comes from.
-the stock moved from the OTC to the NASDAQ in 2019 or 2018. Few analysts are covering the stock. The have set PPS targets of apx. 30.- to the stock. I think they will up their estimates dramatically during the Q3 and Q4, 2021!
-monopolist in its field, that is non-opoid pain relief. High margins, 75% apx, so increase in orders will lead rapidly to increasing bottom line cash flows / earnings per share.
-Hiring sales reps in a VERY rapid pace. Due to COVID they have been able to attract even more sales men. In the beginning they cost money --training, etc.
-The amount of sales reps have appx quadrupled in 2020. Now over 500. The 'hiring pace' will decrease. EOY 2021 the number of sales reps will be apx. 600. The end goal is apx 800 in the future. By that time they will have covered all the US regions.
-In 2021 they expect revenue to more than double and end up in the 125-150 million range. And further exploding in 2022 due to the expanded and more experienced sales force
-With all the new sales reps they expect that by the end of 2021 the average revenue will be just below $400,000 per sales rep.
-In my excel model I conclude an EPS of $0.30 in Q4 2021. Combine that with a growth of apx 100%. A P/E multiple of 30 will put us in the $35-$40.- range.
-The amount of outstanding shares is very stable. CEO still owns apx. 54%, so he has a huge skin in the game
-This whole exercise / calculation is WITHOUT taking into consideration the future sales of the Blood Volume Monitor. Note the Press Release of January 6, 2021. In one of the CC in 2020 they have indicated that this is a 3 BILLION market in the USA
-With the current sales reps plan they cover the whole USA. Expansion into Europe is also in the cards.
-ZYXI is debt free and has a large cash position
-The stock has a short ratio of apx 27%. Surprising earnings, of which I expect to see, might set off a covering reaction
-the amount of outstanding shares is apx 34 million and in March 2021 the company released a buy back for $10 million.
I honestly do not see why this stock will not triple in 6 months and even be worth more than $100.- somewhere in 2022.
I know I might give the impression of being exaggerating, but I really am not. I followed this company for many years. And we are NOW at the moment. I expect the stock to trade at a huge discount versus fair value.
From a HMBL Investor
The Netherlands
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