Market conditions remain extremely poor, and we believe that cash remains the best pick at this time. There is a good likelihood of some oversold bounces for those with short-term time frames, but we see few stocks with charts that we are willing to buy right now.
One name we will be watching is Sensus Healthcare (SRTS). SRTS is a medical device company that sells radiation therapy devices primarily for dermatology procedures dealing with skin cancers, keloids, etc. It has a new product for use in hair restoration.
The company sold off a non-core division and has over $30 million in cash or $2 per share. It saw revenues grow 237% in its most recent quarter and posted eps of $0.97, which included a large one-time gain. The current estimate for 2023 is $0.75, and the company sells with a PE of just 8x. There is also a share buy-back of $3 million in place.
Eventually, the market should recognize the strong fundamentals of SRTS, but technical conditions are still poor, and we will wait for better price action before we build our position further.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in SRTS To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.