Why Ekso Bionics (OTCbb: EKSO) Stock Is a Long-Term Profit Machine

Ekso Bionics Holdings Inc. (OTCbb:EKSO) stock is one of the best long-term profit plays on the market today. In fact, our expert says EKSO stock could climb 1,648% from today's opening price within the next five years.

Ekso Bionics operates in one of the most dynamic tech fields today: human augmentation.

Money Morning's Chief Investment Strategist Keith Fitz-Gerald has been following the sector for his Total Wealthreaders. And EKSO stock is his favorite play in the space.

That's because Ekso will be one of the biggest players in the market. Fitz-Gerald expects it will have a 25% market share by 2020.

He visited the small Richmond, Calif., company in 2014, and the technology he saw was a total game-changer.

"My trip to this tiny company was quite simply the most inspirational visit I've ever made to any company… in any industry… anywhere in the world," he said.

The Inspirational Story of Ekso (NYSE: EKSO) Stock

Ekso Bionics develops robotic exoskeletons. They're suits that allow people with severe mobility issues, stroke victims, and those with spinal trauma to walk again.

Ekso's products are unique to its industry. Normally, these suits require hours of learning and fitting. But Ekso's products are much easier to use. In fact, Fitz-Gerald said, the demonstrator took less than five minutes to get acclimated. The suits also adapt to different wearers with just the push of a button.

"Almost casually, [the demonstrator] moved from his wheelchair to an exoskeleton splayed across a chair next to us and buckled in." Fitz-Gerald explained. "Less than five minutes later, he stood up at the push of a button – and we went for a walk together to see the rest of the factory."

And the company's applications stretch far beyond the medical field…

Keith's New EKSO Share Projections

• EKSO is able to capture 25% market share, resulting in $450 million of revenue.
• Assume an 11.6% profit margin (the average of its industry: Medical Instruments and Supplies).
• Therefore, the company would achieve (from the medical devices segment alone) net income of $52.2 million.
• Assuming no additional share dilution, there would be 78.61 million shares outstanding.
• Therefore, earnings of $0.664 per share.
• PE ratio of 32.9 (based on industry average)
• Therefore, a potential share price of $21.85 by 2020, which represents a 1,648% gain from today's price of $1.25/share.

"Much of the stuff they're doing in this area today centers on making soldiers stronger and increasing their work capacity in combat situations," Fitz-Gerald said. "Load-carrying capacity is especially critical, for example, when you consider the average load out for a Marine these days is well over 100 pounds."

That has government agencies and defense contractors lining up for Ekso's products.

The company has licensed technology to Lockheed Martin Corp. (NYSE: LMT) and has received more than $35 million in research grants from the Department of Defense.

Google Inc.-owned Boston Dynamics chose Ekso to execute a DARPA (Defense Advanced Research Projects Agency) project called "Warrior Web" in October 2014. The project will provide soldiers with suits that allow them to walk, run, and climb faster.

Another bullish sign for Ekso stock is the company's huge portfolio of patents.

"The company has more than 150 international patents with 10 U.S. patents granted and another eight filed," Fitz-Gerald explained. "This gives it an annuity-like revenue stream down the line from partners who license the technology."

The potential for EKSO stock is huge. To make the most of this investment, Fitz-Gerald recommends investing in EKSO stock a specific way…

Dollar-Cost Averaging Explained

Dollar-cost averaging (DCA) is the strategy of buying a fixed dollar amount of a security on a preset schedule.

How It Works: Say an investor wants to spend $10,000 on a particular stock. Rather than invest the $10,000 all at once, he or she can invest $1,000 for 10 straight months.

Why DCA? The benefit of dollar-cost averaging is investors can avoid buying in with their total investing capital at the wrong time. It is a way of minimizing risk.

The Best Way to Invest in Ekso Stock Today

Ekso Bionics stock opened March 10 at just $1.25. It has a wide 52-week range of $0.75 to $5.50 per share.

Fitz-Gerald says to expect volatility in the short term.

"It's a micro-cap in the truest sense of the word. It's only natural that it's going to have a broader trading range and attract the kind of day-trading gamesmanship we're seeing," Fitz-Gerald said. "Eventually that will get bled out as the company attracts more capital and more success."

That's why Fitz-Gerald advises using dollar-cost averaging to invest in EKSO stock. That means buying 25% of your desired position at a time until reaching your target share holding. He recommends minimizing risk by putting no more than 2% of a portfolio into Ekso.

Investors should also plan on holding EKSO for at least 24 months. Any short-term volatility will be worth it. Right now, Fitz-Gerald has a price target of $21.85 for EKSO stock by 2020.

"EKSO is not just a great investment for your financial future," Fitz-Gerald said. "It's a great investment for the future of humankind."

The Bottom Line: Ekso Bionics (OTCbb: EKSO) stock is one of the best long-term profit plays on the market. It could see a 1,648% price climb in five years. The company's revolutionary technology has applications in both medicine and defense. By 2020, the company could account for 25% of the human augmentation market. Due to short-term volatility, dollar-cost averaging is the best tactic to use to establish a position.

By KYLE ANDERSON

Source: http://moneymorning.com/2015/03/11/why-ekso-bionics-otcbb-ekso-stock-is-a-long-term-profit-machine/