NNOX - Nano-X Imaging: A Classic Market Overreaction

2024-02-16 07:16:00 ET

Summary

• Nano-X Imaging's stock spiked after tech giant NVIDIA bought a stake in the company, but the small transaction does not change the pessimism surrounding Nano-X Imaging's fundamentals.
• Nano-X Imaging's revenue and profitability remain poor, with negative bottom line results.
• While Nano-X Imaging has interesting developments in the medical imaging space, its revenue is still in the early stages, and the investment from NVIDIA is relatively small.

As the great Benjamin Graham, the father of value investing, indicated at least once, Mr. Market's moves should be used to one's advantage. The market can be very irrational from time to time, completely detaching from fundamentals. During times when Mr. Market is willing to pay outrageous prices for the shares you own, it might make sense to take him up on the offer. And when he is willing to sell you stocks at a steep discount to their intrinsic value, you should back up the truck to pick up as many shares as possible....

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