Imris Inc. (NASDAQ:IMRS)

CAPS Rating: 5 out of 5

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Member Avatar Teacherman1 (< 20) Submitted: 12/29/2014 4:09:27 PM : Outperform Start Price: $0.53 IMRS Score: +30.53

Actually in at $0.20, but could not re-open at that price.

I think there is a possibility that they will be bought out in a "Private Equity" deal, or by another medical equipment company, but if not, they will be worth a lot more over the longer term.

Insiders own a large percentage of this company.

Do your own DD, but I think that it is worth taking at least a small position, even at the current price.

JMO and worth exactly what I am charging for it.


Member Avatar TSIF (99.97) Submitted: 4/28/2014 5:19:31 PM : Outperform Start Price: $1.18 IMRS Score: -54.34

Teacherman1 and I batted some ideas about Imris
My comments:
Core idea pasted below.

Teacherman1 comments

When I first pitched it March 6th, I noted my CAPS call was early from a technical and fundamental basis, but I was marking it.

While Teacherman1 frequently closes and reopens his picks to better show current real life cost basis, I typically let my calls ride, scooping for the accuracy point at some time in the future.
In this case, I decided to close my original $2.03 caps call, placeholder, and reenter lower. My dollar cost average is now about $1.32, so above this entry, but well below the $2.03 I first called it with no RL in play.

Since I expect this to be a very long term call, eating the 40 points, (even though I think 2.02 plus S&P delta is definitely possible), seemed a better use of CAPS as a tool, and allows me to click off the "conviction" call. It's confusing when you tick this off 40 points down.

It appears that at least one of the 9 Institutional investors with 1M or more shares dumped last week. A 3M volume share day, with volume spikes on each bounce sniffs of someone with L3 screening, dumping all they can, not in any particular concern about their own loss, but not wanting to tank it completely either.

The risk adverse market is not leaving room for small caps that "might" go earnings possible in a quarter or two. It could be if the backlog/orders/cash flow don't align that Imris will need to dilute again soon, which almost always drives down price.

I'm happy dollar costing in sub $1.50. I believe that while getting high ticket medical equipment into hospitals is a long and difficult process that eventually it can get momentum, with top tier hospitals validating it.

OLD PITCH, still applicable. 2-4 year play.....

I would normally wait for the 3-Day rule after a major share price move, in this case it was down....but I owed Teacherman1 a LONG idea, as he can't do anything with my rash of red thumbs of late.

I called this one early and didn't get optimal entry, but I like it as a LONG.

I explored Imris, Inc on the 20% saleoff yesterday. Checking out big market movers and experimenting with them is one of my "studies". What I found was a small cap company, well ahead of it's lows, but getting knocked down hard after disappointing quarterly earnings. This company has not been cash flow profitable since it's inception, but had been releasing new products.

The company recently moved 100 jobs from CA to Minneapolis. Perhaps the workers are frozen.
Part of the issue with quarterly earnings besides move expenses was that they received FDA and CE approval for their next generation image guided systems which surgeons can use during operations. I'm in a field where it's easy to obsolete yourself with a product roll and this appears to be part of what happened as orders were deferred.

Since orders are small, any deferral can produce and issue. Overall, they booked 11.4M of orders last quarter and now have a backlog of $102M. While a large percent of backlog never materializes, some does. That they had that much backlog, however, leaves question, but perhaps they are answered by the relocation and expansion.

The question will be if they have enough cash to turn the corner. They expect to be cash neutral in 2014. The big question I have is that they believe they can function without additional funding. This seems unlikely, but could happen if orders and payments sync.

The breadth of product seems sufficient and they will make some money off disposables and maintenance.

I believe they have a good chance, but there are few investors who will hold "dead money" in a hot market. The share price declined another 5%, typical second day selloff today to $1.84. I would be a buyer if this retreats further, but will watch it to see if there is a trend.

The power of going cash flow negative to positive is huge for stocks.

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