Author Topic: USNU - US NeuroSurgical  (Read 5757 times)

writser

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Re: USNU - US NeuroSurgical
« Reply #10 on: October 07, 2017, 01:57:30 PM »
The CEO owns 15% of the company, worth ~500k at current prices. Better than nothing, but given that his salary is 300k (and the perks mentioned above) I wouldn't exactly say his interests are aligned with ours. Actually I'd say he doesn't give a shit about minority holders. Also, I still think you paint a bit of a rosy picture by ignoring all liabilities on the balance sheet. And it's hard to figure out what exactly is going on with all the VIE's - disclosure is sparse and some stuff looks like an absolute mess (for example the MOP partnership ..). Finally, it's hard for me to judge how much capex is needed for all the machinery and/or what happens when their contracts expire.

Despite all that, it looks cheapish :) . Probably a decent holding for a basket approach. I'm on the sidelines for now. Looks like a typical one-map show with a CEO that is more interested in his job than in his shareholders.
« Last Edit: October 07, 2017, 02:03:12 PM by writser »
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JanSvenda

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Re: USNU - US NeuroSurgical
« Reply #11 on: October 18, 2017, 12:34:49 AM »
Hey,

I agree that USNU offers an interesting opportunity. Their agreement with NYU lasts until 2021 and the revenue has been increasing ever since opening after the hurricane which is likely due to the popularity of the treatment as well as the relative popularity of physicians at NYU (who bring more patients).

While their investment record is patchy they have not done much in the past year or two so it might be that this risk is quite low, the management is aging as well so might not be that incentivized to run this forever.

Given the implied cash flow from NYU, the stock should trade higher and it is likely that the share appreciation could be pushed by just the financial results so there is no need for any other catalyst.

The downside would occur if they invest the proceeds into some new venture. Also do not forget that the cash flow was strong recently because of proceeds from one other investment (Florida Cancer Center) which is unlikely to continue due to the bankruptcy of the buyer of the equipment that the center was selling. This is though not overly material as NYU revenue stream is unlikely to suddenly plunge.

I have highlighted this stock in August in my OTC Newsletter - https://jansvenda.com/otc/ and I wrote a report about the stock for the newsletter. Feel free to email me (overthecounter@protonmail.ch) if you want me to send you a copy of it.

Best,

Jan



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InelegantInvestor

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Re: USNU - US NeuroSurgical
« Reply #12 on: May 08, 2020, 09:39:31 AM »
Has anyone looked at this recently? NY is winding down, but JVs seems to have value. Someone has been pushing stock price up recently.

keerthiprasad

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Re: USNU - US NeuroSurgical
« Reply #13 on: May 10, 2020, 08:39:40 AM »
I'm curious, how are you valuing the JVs? It seems like they have been mostly unsuccessful over several years of trying to develop further partnerships.