Oct. 2 at 4:46 AM
$JYNT The company continues to report negative operating income and net losses. Even with the stock closing today at
$9.27, it's still overvalued. To consider investing at this time, we'd need to see a discounted cash flow valuation closer to the
$8 range.
Despite eliminating many private chiropractors through aggressive expansion, and selling corporate locations the company still isn't profitable. Insurance reimbursements are too low to support independent practices, and while it’s good that The Joint doesn’t accept insurance (since that would just increase administrative costs and debt), they’re still burning cash. They can’t keep operating eating away their cash balance for much longer. If they don’t raise capital or cut losses, this won’t be sustainable. The next earnings report is likely to show further losses, limiting any near-term upside in the stock price. The new Chief Marketing Officer -good luck- she has an enormous task to do.
