Q: Do you think there is any future for CMC and DOC .
5i Research Answer:
CMC still does not have reported revenue but is building a facility. It recently raised equity capital, but until revenue kicks in will continue to have negative cash flow. While it is not without potential, its small size and losses make it hard to attract new interst. We expect it to survive, at least for a while until its facility builds. After that it will depend on operational execution. But it is not a stock we would be comfortable holding right now. DOC has a large revenue base and an OK balance sheet (some debt). Losses continue but are shrinking. It recently reaffirmed guidance. It is looking better than CMC because of its revenue base, but also not one we would endorse in the current market.