AMEX:STXS   Stereotaxis, Inc
I am not a financial analyst, not a stock analyst, not even a robot analyst. This is my opinion, and you should do research on anything you put money into, and my ramblings are not that research.

With that said, this is my personal take on this little company that builds robots that do heart surgery. In the following presentation, if you think I know a thing or two about hearts, and anything medically related to hearts, please know that I dissected a cat in senior anatomy class and that is about the extent of my medical knowledge.

The Wax Poetic
Normally I would put the science part of my analysis here, but I can't do science on this. I really don't know much about robotics systems much past a roomba. Furthermore, they build robots for TAVRs, and I really only know the basics on this from a secondary source with a mix of news articles and light, extremely light, medical journal articles. So when I say things like, this company has an exponential growth margin with the ability to become a 100+billion dollar corporation that 70% of the 65+ age group are going to meet, well yeah, its bullshit. But that's the moon for them, I just need them to get off the ground. Luckily, this doesn't even rely on them, except for their ability to manufacture and train, so any major price changes are years away.

TAVRs- Transcatheter aortic valve replacement: $35k procedure (in the USA) that is being done on a growing amount of patients not yet in need of major open heart surgery, but those still needing a surgical intervention. This is rather common where medical options have failed, or the person is old or hasn't taken good care of themselves. As the general age of the population increases, as it has been, and the general access to higher level medical care is increased, as it has been in the US with the rise of the mid-level medical provider (Nurse practitioners and Physician's Assistants), those needing advanced medical or surgical treatments for their heart and vascular system will increase. Furthermore, as more and more TAVR surgeries are being done and the access to them is increased, the need for an accomplished and precise surgeon is going to be necessary. This is where Stereotaxis excels. I am going to be really honest with y'all, surgeons fucking suck. That isn't a joke. An "excellent" surgeon is a surgeon who just makes less mistakes. Robots are going to take over surgeries because they aren't just better, they are perfect. Or rather, they will be, eventually, when they have been developed and tested enough.

And then enters Stereotaxis . A company making a robot that lets a trained expert in the TAVR procedure to do them, aka an advanced mid-level? Or maybe allowing a surgical expert in the TAVR procedure, an expert on performing surgeries using the robot and an actual surgeon to perform it from thousands of miles away? Aaaaaaand they did that! In China no less. If you want to talk about a market needing access to higher level medical procedures in a developed country, then focus that discussion on China. I have no doubt that the medical boom underway in America is going to advance in China at a much greater rate. Being on the edge of that advance is amazing. This is a market that is going to see a boom. I have no idea if Stereotaxis is the company to do it, but I don't see anyone else positioning for it.

On top of all of this, they are developing automated imaging robots. This doesn't just help in pushing advanced medical access to more remote or suburban regions, but helps urban centers deal with a costly and timely process. The company doesn't just already have a massive blockbuster on their hands, they have a studio jam packed with ideas, vision, and the engineers to make it happen?

The Company
This is where I will caution you. I am a science first dude, if you are a medical or science company, you need to keep science with you, otherwise you are a product company. Products fail, science just has more to discover. Stereotaxis is a product company. Or rather it has the shell of a product company. Do not sue me if I get this wrong, but this is my interpretation: A young doctor does well for himself, an esteemed medical expert, does research as well. Sells a company to Pfizer , makes a lot of money. His son turns out to be a math wiz, pretty good at analyzing mathematical patterns, has a nose for stocks. The doctor has money, starts an investment firm. Son joins investment firm specializing in research and analysis of medical device and medical companies. Son sees a star, tires of being an analyst, wants to start a company, a brand, he wants to be a technoking one day. So the son buys the company, sets up the right people to manage growth, works deals, business driving business.

I have no doubt that there is a crew of top notch scientists, engineers, coders and doctors inside the shell. I just don't know how much they get a say in the company, or the products anymore. Think Apple , once they lost some of their all star inside the shell team, they turned from overpriced but good to overpriced and absolute trash. Do I trust Stereotaxis to become the next Apple and do that? No. But I can definitely keep an eye on Stereotaxis and look out for it's competitors, because someone is getting a piece of this pie.

I would suggest a visit to the company's website for investors. The presentation is business garbage, but that is what we are here for, ain't it.

The Play
I don't see a short term driver of massive growth outside the current resistance bands. Overall, I see the next stretch of action getting +/-20-30%, presenting various short term trades, but the true value might be in pulling this as a true long and avoiding massive taxes. Furthermore, my motto is to balance everything, so having a nice potential long could be nice. The fundamentals are nice, it has low float, low volume and low market cap. If any company wants to acquire, it would be impossible without a massive increase in value over current as a huge amount is owned by the CEO and director (Father/son of their hedge fund), thus forcing them to pay a lot or to start their own development, announcing it, and causing media and hype on Stereotaxis , bumping them up.

The Fundamentals
As of 3/31/21 with a stock price of $6.79, they have a market capitalization of $500 million.
19% of the company is owned by the CEO's dad's hedge fund (that he also runs). Without this, the son is easy prey to remove with a competing ownership stake. That and the CEO seems arrogant enough to never not believe in himself, with smart enough to maybe make it happen, so he has been buying more and more of the company.
The next 5 institutions own 8-4% of the float as well, and they have all been buying more recently. Oh, and they all look like the CEO's friends or are actual Directors of the company.
The financials also give the appearance that the last price decrease was retail/day trader driven.
It looks like the float is drying up, the price could get more and more volatile with a general lean upwards, unless some catastrophic causes someone to be margin called, so there is volatility both ways!
A competitor, Intuitive Surgical , does robots for laprascopic/endoscopic procedures, has a market cap of 88 billion. While Intuitive is a much more developed, possibly better, company that deserves its valuation, it doesn't have the tech in PR or outward development to enter any of the same space. While there are a handful of other great companies all developing and working on it, I view Stereotaxis as a solid workhorse for any diverse portfolio.
They have no debt, plenty of free cash and are on their way to the green.

Thank you, and as always, please leave criticism or comments, things you want me to touch on more, etc. Always do your own research, internet is full of strangers, weirdos and liars.

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