EKSO short opportunity – company is printing stocks and never delivers

image_pdfimage_print LLC - Second Sight Markets Analysis 6/29/2020 - In 2006, Ekso Bionics designed and sold the first practical human exoskeleton.  But since then, all they do is print more stocks (dilution) and never deliver.  This company is a master of gaming the system and doing nothing, their stock price is based on market perception based on their PR/marketing engine and nothing else.

Our target is from where it is now 7.55 to go to at least 3.10

From our research:

  • IN 2014 EKSO estimated their sales penetration would be 1-5 units per SCI facility and hospital and that their units would range from 3 to 5 years in these clinical settings
  • By 2016 there was under 200 Ekso GT™ units used all over the world. EKSO has a history of extreme underperformance that we believe will continue
  • May 2016 EKSO did a 1 for 7 reverse split
  • Lockheed Martin, Sarcos / Raytheon, BAE Systems, Panasonic, Honda, Daewoo, Noonee, Revision Military, and Cyberdyne are each developing some form of exoskeleton for military and industrial applications, this has become an extremely competitive industry dominated by companies who are better financed and more resourceful than EKSO

These are just some of the points that we want to reinforce with our short report.  These guys have a history of misleading investors by use of PR.  In a 2017 letter to shareholders the company said their stock was undervalued, while nearly being delisted.  From our research:

Shareholder Letter 2017

To our Shareholders:

As we gather for our annual shareholder meeting, I want to take this opportunity to review our progress over the past year and highlight the opportunities and challenges ahead of us. I also want to address our share price, which has fallen close to 70 percent from last year’s high of $6.58. Our management team and Board of Directors do not believe that our current share price accurately reflects the value and future potential of our products and technologies, and we are executing a strategy designed to create long-term value for patients, customers and shareholders.

In a 2017 letter to shareholders, management told the public their stock was undervalued...,%20INC.&FormType=8-K&View=html

The EKSO stock price went down from 34.80 to 1.12 during the next 6 months, this management team has done one thing consistently, represent rosy projections, then underperform

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

EKSO has done multiple stock splits in order to maintain their listing, this is only one example.  Based on our extensive research on this company, we believe at some point the price will fall.  EKSO is not a fraud, it's a house of cards with a foundation based on PR and a good understanding of how the stock market works.  People read news reports and don't dig into the underlying details.  As you can imagine, the Robinhood ownership is growing with the stock price:


Based on all of this we believe EKSO has a long way down to go.  Long holders beware, this is not what it appears to be.   The idea of EKSO is cool, here is a summary from Wikipedia:

Ekso Bionics Holdings Inc. is a company that develops and manufactures powered exoskeleton bionic devices that can be strapped on as wearable robots to enhance the strength, mobility, and endurance of soldiers and paraplegics. These robots have a variety of applications in the medical, military, industrial, and consumer markets. It enables individuals with any amount of lower extremity weakness, including those who are paralyzed, to stand up and walk.

The company's first commercially available product is called Ekso. Ekso Bionics is the original developer of HULC, now under military development by Lockheed Martin, and the current developers of Ekso (formerly eLEGS), which allows wheelchair users to stand and walk.

Ekso was selected as Wired magazine's number two "Most Significant Gadget of 2010",[1] and was included in Time magazine's "50 Best Innovations of 2010".[2] Ekso Bionics was also featured in Inc. magazine as one of "5 Big Ideas for the Next 15 Years".[3]

However, this is all just smoke and mirrors, the reality is management never delivers on their promises, and this is evidenced by the facts.  Based on this, we believe EKSO is going down.  Ultimately you can only blow smoke to the market for so long before reality sets in.  Many companies trade at high PE ratios for a long time, but they have at least some material business - which EKSO has none.

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