On August 19, 2015, the stock price of EKSO BIONICS HOLDING (OTCBB:EKSO) opened exactly at $1 per share, and at the end of last trading session, the stock was trading close to $1.37. Gaining close to 50% in just seven trading sessions is a remarkable performance, not to forget that the stock closed in red on Friday after recording four successive sessions in the green. The interest in the stock is rising as it is evident from the daily volume of almost 1.9 million shares recorded on Thursday.
EKSO stock cannot be ignored stating it as a typical penny stock as the company is active in one of the fastest growing industry. The company produces exoskeleton suits that can be used in various fields such as military and medical industries. In May 2015, the company finalized a third deal with the United States SOCOM to work on the next stage of the TALOS project. Since then, the company has been enjoying considerable media exposure.
EKSO Bionics financial performance further sets it apart from most of the other OTC traded firms. As per the quarterly report submitted two weeks ago, as of June 30, 2015, the company posted cash of $16.2 million. The quarterly revenue was $2.1 million against the net loss of $5.6 million during the same period. Ekso posted total current assets of $22.1 million against total current liabilities of $8.3 million.
The future ahead
EKSO still has ample cash reserves but investors should not forget that during 1H2015 the company managed to use one-third of the total $25 million it reported at the end of 2014. It indicates that if the company uses the cash at the same pace, they will have to opt for financing next year.
Like many other small or microcap stocks, EKSO BIONICS HOLDING (OTCBB:EKSO) negated the advance made in the previous session as it finished the last session of the week with a loss of 5.52%. The volume surged to 957,000 against the daily average of 624,000 but not that big yet. Combining the last two daily candles together gives us a very sharp Shooting Star candlestick pattern, with highly bearish implications. This pattern requires a confirmation candle the next session but the bulls should feel threatened. A retest of the major support area around $1.20 can’t be ruled out now.