Nova Eye Medical (EYE) Discussion, page-1455

Be careful with the wording, the MACs don't cover 40% of revenue they cover the regions from which 40% of revenue is generated. Within these states, private payers will still cover a large chunk (only 35% of Americans have public coverage, most have private). This makes it difficult to calculate the actual impact on revenue, as it is highly likely that most of those 40% of customers will still be covered by private insurers, and is why the company is likely trying to avoid speculating on how revenue will preform.

I'm am personally speculating we will still see some growth in revenue as new customers should offset the small percentage of customers in that 40% who will have zero coverage (ie no private coverage), and in that case the price is definitely far too low. We saw how much doctors want this device with the 74% revenue growth, and there are plenty of US and global customers who are still covered, which is more than sufficient to offset lost customers. I also speculate a 2RT deal within the next few months, which will be large enough to push this back above 30c (even if nothing improves on the iTrack front). I think we have a strong management team who have delivered (eg the recent strong revenue growth) and will continue to deliver, as well as a quality suite of best in class products. Of course, the company cannot speculate like I can and so they are taking a very conservative approach to guidance, but this is my view and is why I continue to hold and buy.

I actually liked the announcement today. Zero fluff and zero BS, if shareholders don't like that we are probably better without them. The company knows they have a strong and loyal investor base who definitely believe in this company and appreciate being told the facts, rather than the happy sounding fluff or speculation you get from many companies. Management is clearly still very confident and don't feel the need to release a "pump" announcement to try and keep the price up, they know that sooner or later it'll be back above 30c due to the solid fundamentals.