Weekly Update 34
This week, NUTX, KRMD, SNES, and INFU, which ones can you still buy?
Nutex Health (NUTX)
Our March SA Investor Group article (paywall) advised buying at $90.
Q2 results were cracking, despite a $13.6M revenue decline die to difficult comps. H1 revenue was still up 15% and H1 net income was $112.6M (up from just $3.5M in H1/25).
The main risk, changes to the IDR (Independent Dispute Resolution) mechanism on which much of the company’s financial revival depends, seems overblown to us, with the company becoming less dependent on IDR and the process fortified in six states, as well as becoming cheaper.
The company generates copious amounts of cash, used for growth (building more micro-hospitals and IPAs (Independent Physician Associations) and buybacks.
Dilution overhang is greatly reduced.
The shares are comically cheap at 5x earnings and can still be bought at these levels ($150-$160).
KORU Medical (KRMD)
We have written multiple times about KORU on Seeking Alpha, see for instance here, here, here and here.
Its Freedom subcutaneous syringe offers many benefits for patients on Ig therapies as SCIg provides patients with greater independence and lowers overall healthcare costs by removing the need for clinical supervision. and there are expansion opportunities beyond Ig (for instance, RYSTIGGO was cleared by the FDA for use with the Freedom system in January) and internationally (+59% in Q2), as well with data gathering.
Q2 figures displayed some setbacks as certain non-tender markets are ramping up slower than anticipated and management withdrew its 5010k) application for Phesgo, in order to pursue other high-volume oncology biologics more attractive for its US entry.
Pharma Services revenue was down 35% to $600K but this is a lumpy business depending on the timing of clinical trials.
Nevertheless, revenue was up 18% and the company delivered its first positive net income this decennium.
We think the shares are a buy at $3.5, taking advantage of the post-Q2 selloff, as this is the leader in SCIg and venturing out to adjacent growth opportunities.
Senestech (SNES)
No, our No.2 pick for FY26 has not been an easy hold, basically we expected things to move considerably quicker as they have a host of channels, distributors and the like but the company is now under new management and they have already rebooted the e-commerce business (by far its largest channel) in Q1 and that has delivered a big turnaround in Q2.
We’ve written multiple times about this company, here just the main points of Q2.
Rebooting its e-commerce strategy is paying dividends, taking hold of managing its Amazon account boosted revenues from $61K in Q1 to $349K in Q2 and Q3 is already off to a promising start.
They’re also revamping their DTC website but the advantages came after the quarter. Despite this, sequential growth was 31% to $155K here.
The company’s subscription revenues were up 89% sequentially to $104K now counting for almost 15% of revenue. These have near zero CAC and better retention.
B2B revs were down from $460K in Q2/25 to $259K in Q2/26, but due to large one-off orders in Q2/25.
The company has a host of opportunities in Agriculture, Municipalities (concentrating on Chicago), its new AI-enabled assessment services and international growth.
At the present cash burn, the company has three quarters of cash ($5.08M) but given the progress in the business we think that cash burn will decline, stretching this out and, more importantly, additional financing isn’t the disaster investors seem to think as they’ll get a strategic investor onboard (Glenbrook has already been buying up shares regularly and holds nearly 20% of the company), so no toxic financing deals or even warrants will likely be necessary (although not guaranteed). They still have $7.5M in an ATM facility as well.
We think the other channels will start to meaningfully deliver by the end of FY26.
We think the shares are a buy under $1.50.
Xometry (XMTR)
Our Primer (May 2026), and earlier articles Aug 2025 and Nov 2025.
We advised our SA Investment Group members (paywall) to buy at $33 in January 2025, and at $50 at the end of May 2025. so far, so good.
Q2/26 was another good quarter and it looks like the company has reached escape velocity as growth seems to accelerate:
Q2 figures aren’t yet in the graph but growth accelerated to 41% with marketplace growth even at 45%, and the company is producing considerable operating leverage with OpEx only growing 19% and gross margins expanding a little as well.
We see a host of AI initiatives reducing search and matching cost, a Siemens deal ( Xometry’s AI capabilities will be embedded natively into Siemens Xcelerator software, and $50M investment in the company from Siemens) putting the company further on the map (Siemens has millions of users, dwarfing those of Xometry) and economies of scale and scope and perhaps already some network effects.
The company also has $517M in cash and equivalents.
We still think the shares can be bought (under $100).
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