MYO - Why I Didn't Buy Myomo: Dilution And Cash Burn
- Myomo's management has a history of diluting shareholders. The firm is still burning cash. Therefore, I will pass on this stock.
- Myomo claims it will become cash flow positive in Q4 by increasing direct billing, but it has already done that in the past few years without getting to breakeven.
- Most of the shift to direct billing has already occurred. After Myomo burns about $2.5 million in Q2, the firm will be close to where it should raise cash.
- I'm worried about the firm's low R&D spending. I'm concerned that there isn't enough money being spent on developing the technology.
For further details see:
Why I Didn't Buy Myomo: Dilution And Cash Burn