Zynex Inc. (OTCMKTS:ZYXI) On A Bull Run

Zynex Inc. (OTCMKTS:ZYXI) surprised the market in August 2017 by delivering news that made the share price react jump from $0.75 to over $1.50. We had a look at the recent share price action and found out that the stock price has been creeping up since June 2017. Thus, we researched everything that was released recently by ZYXI and saw that many good things have been going on including the election of a new CFO and new debt payments. Before we give you all the details, have a look at the astonishing move in the following stock chart:SourceBusinessZYXI was founded in 1996 as a group of companies. But, it was not until 2001 when the founder of those entities created the parent company. According to the most recent annual report, the parent company has six subsidiaries doing different activities: Zynex Medical, Inc., Zynex Neurodiagnostics, Inc., Zynex Monitoring Solutions, Inc., Zynex Billing and Consulting, LLC, and Zynex Europe, Pharmacy, Inc. It is headquartered in Lone Tree, Colorado.The company's products are non-invasive medical devices for pain management, stroke rehabilitation, cardiac monitoring, and neurological diagnostics. A long list of company products can be consulted here. The following ones seem to be the most remarkable. Note that the FDA gave its permission to ZYXI and the clinical studies show the benefits of its devices.Source: zynexmed.comRecent Developments On June 9, 2017, the market got to know the appointment of Dan Moorhead as its Chief Financial Officer. He previously worked for Evolving Systems, Inc., a Nasdaq listed company. He is a CPA and holds a B.B.A. degree in Accounting from the University of Northern Colorado. Thomas Sandgaard, CEO of Zynex, was quoted:

"Mr. Moorhead is a seasoned professional with a successful public company track record and has extensive experience with acquisitions of companies, both domestically and internationally. One of our long-term goals is to list on a larger exchange, such as Nasdaq or NYSE, and we believe the improvements we are making to the organization, including expanding our sales force and the more recent improvements to our billing and collection efforts, will position us well for up-listing." Source

Additionally, another significant news item was released on July 6, 2017. ZYXI noted that it paid off the entire remaining loan balance to Triumph Healthcare Finance. As of December 31, 2016, the total amount of liabilities was $7.8 million. The company owed Triumph $2.2 million. Hence, the payment of the debt is very relevant. The share price increase that followed this announcement was completely justified.On top of it, on August 14, 2017, the company reported its financial results for the second quarter ended June 30, 2017. The most significant part was the strong net income of $1.5 million and the revenue growth, which showed an increase of 47% compared to the first quarter and 53% above the second quarter of last year. Finally, some guidance was given; the estimate for third quarter revenue ranges between $5.4 and $5.8 million with Adjusted EBITDA between $2.0 million and $2.4 million. Thomas Sandgaard, CEO of Zynex, was quoted again saying that the company's long term goal is to be listed on a national stock exchange:

"Our long term goals are to continue to take advantage of the huge void in the electrotherapy industry, a listing on a national stock exchange" Source

Finally, on August 22, 2017, the market got to know that the prestigious equity research firm, Taglich Brothers, Inc., has started covering ZYXI. A 17-page report can be find on the firm's website. We had access to the document and saw the following firm's conclusions:

• ZYXI Share Price Target: $2.30
• Time Horizon: 12 Months
• Price When Established: $1.08

Additionally, we would highlight the following text from the report written by Taglich Brothers, Inc.:

"Zynex has substantial growth potential as a provider of FDA-cleared electrotherapy medical devices used for pain management and rehabilitation. Consulting firm Transparency Market Research predicts 7.3% annualized growth in the North American pain management device market to $3 billion in 2023." Source

ConclusionZYXI released interesting news in June, July, and August 2017. We believe that these news were responsible for the sharp share price increase. The payment of the debt, the election of a new CFO, the strong financial figures and the fact that Taglich Brothers, Inc. gave a target price of $2.30 have surely affected the share price. We don't see why the share price would stop creeping up if the company continues issuing good news. To sum up, be alert on this name.We will be updating our subscribers as soon as we know more. For the latest updates on ZYXI, sign up below!Image courtesy of CommScope via FlickrDisclosure: We have no position in ZYXI and have not been compensated for this article.