This stock offers limited prospects

Article Excerpt

You should remain wary of stocks that attract broker/media praise for their high-profile products or services and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration: HYPERFINE INC., $3.07, (Nasdaq symbol HYPR; TSINetwork Rating: Speculative) (www.hyperfine.io; Shares o/s: 56.0 million; Market cap: $225.3 million; No dividends paid) is a medical device company based in Guilford, Connecticut. Hypefine’s FDA-approved Swoop portable MRI (magnetic resonance imaging) system can be wheeled directly to a patient’s bedside. The device then plugs into a standard electrical wall outlet and is controlled by an Apple iPad. That mobility represents a change from current MRI technology that forces patients to come to the machine to get scanned. However, while the Swoop device is much cheaper and more portable, the images created by the bedside device are less detailed than what you get from full-sized MRI machines. As a result, Swoop is a complement rather than a replacement for conventional MRI systems; that limits its…