Yes, last two Q's have been decent. Still a big market for proton therapy machines - so if they can land some clients in that space, they could do well.
company say that long term refinance will not problem,
The big plus is the backlog expansion by an additional 3.2 million last quarter and the exercise of many of the convertibles.Alex said they have more room to run, with over ten substantial customers.I don't believe the Mevion expansion into China has had time to take hold yet.
I've been watching, but I need to see one more positive quarter before I will invest
This last quarter was the turning point in my mind. The first profitable quarter they got that done by procuring a conditional advance for the GTAT settlement but the operating picture was still in the red without that. This quarter they drilled down their costs so much that they are generating positive cash flow without any financing tricks. So as long as they can maintain their revenues (Alex was uncharacteristically positive that revenue momentum will increase) they are in the profit going forward. With them being able to pay interest charges with cash flow and given the new CFO's comments that refinancing has no hurdles, it seems very easy for to see them get their books in order and have the market cap to expand significantly past the current 5 million. (just maintaining a profit of 300K every quarter makes the stock double). The thing I don't like about this name is that it was over the counter so I pay bigger transaction fees every time I would like to buy/sell, not sure if any of you don't need to deal with these fees. I was thinking of using this one for tax loss selling, but now that the momentum has turned, I'm not sure I want to risk it. There are a few catalysts in the short term - first one is the refinance, second one is GTAT exiting bankruptcy and they recuperate more funds from that. Also any announcement of a Mevion contract is always possible.
any thoughts on this weeks reporting? 20.5 mill sales order back log. as of 1/1/2016
Well, the good news is they are working capital positive now, they have successfully avoided bankruptcy and moved out debt to 2018. The increase in backlog is encouraging also. However, the Mevion relationship does not look like a big catalyst anymore unfortunately - so the two things that made this stock more electric at first (Mevion and GTAT) are not really happening. You're left with government contracts - defense and nuclear, making it that you get very little forward guidance partially since much of those deals are confidential, partially maybe because some of the past has left a bad taste in leadership's mouths. Still it's such a small company any increase in profitability will be significant given the market cap. I don't know, I'm not excited yet I'm not fearful (and I don't have much money in it at this point). I suppose Alex Shen could be hiding something good but that's wishful thinking - it could be a long wait.
Seems like Shen is walking a tightrope... skillfully, cautiously... if someone tries to throw a large contract at him he may duck...: "Well, I think right now the ability to do more without detrimental impact is very important to hold the line. And trying to do more and getting shaky, that will be problematic. We are not recovered yet."