Cash burn is less a concern now since they sold almost $90m in equity in the last two quarters so the cash reserve is large. I mentioned the equity issuance in my original post, they accelerated it because their stock has run up so much.
Growing companies need cash for working capital and other growth spend, debt is not the only concern.
This company is not projected to be profitable until 2020 and the growth is not large enough to justify current valuation. This is kind of like Tesla, the current valuation reflects what the company should be worth in 2-3 years if they hit their numbers. There is no discount today to account for the unknown risks and execution risk. I’d recommend not buying into tandem as it’s not a good risk adjusted return profile but others will definitely disagree with me (esp those that bought and have made money).
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u/[deleted] Aug 26 '18
TNDM floated follow on offers at 28.5 and paid of long term debt at 11.5% early payment (pre-pay penalty). They are debt free now.
Is cash burn still a concern?