TM Editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.Image Source: PixabayIt’s not 2024 yet, but I’ve been thinking about where I should put my time, attention, and money next year. After two years of a bear market in small- and micro-cap stocks, I think 2024 will be a great year — as lower interest rates, more “risk-on” sentiment, and low valuations will all work in investors’ favor.My top 3 picks for 2024 include two small-cap NASD stocks, and one TSX-listed stock up in Canada. None are commodity plays. All of them are companies that I expect to have huge jumps in EBITDA throughout the year, with all three of them potentially reaching positive cash flow in the first half of the year.I will outline one of them for you right here: Myomo Inc. This stock has jumped from my original purchase of 83 cents to $4.50 after they received approval in the US to be covered by Medicare (CMS) for their myo-electric arm brace. This brace is a huge improvement in the quality of life for stroke victims, people injured in accidents, and those with prosthetics, Parkinson, and other nerve disorders.I think there’s potential for another 5-bagger in it from here. They have built up a $20 million a year business before they got CMS approval in November (which takes effect in 2024). It looks to be a very empowering device for people injured in accidents, who have strokes, or develop conditions affecting nerve endings.Now, here’s my original notice on Myomo.

Portfolio Purchase: Myomo Inc (MYO)
I have purchased 30,000 shares of MYO at 83 cents per share. Myomo makes and sells an electromagnetic arm brace that picks up brain signals and allows people to have some controlled movement in their paralyzed arms.This is leading-edge tech, in my opinion. It’s FDA-cleared in the US and CE Mark (Europe) approved. They cost $43,000, which isn’t cheap, but revenue was $15 million in 2022 and is expected to be $18 million in 2023 — that’s 20% growth. And the backlog is growing. They have $9 million cash, no debt, and net cash burn is about $1.5 million per quarter.

The Big Catalyst
Every junior stock needs a catalyst to go up. Just having a good story and being cheap is not enough. A possible catalyst is that it could receive US health insurance coverage in late Q4.Myomo is working with the Center for Medicaid and Medicare Services to get its technology covered not as Durable Medical Equipment (DME), but under a new designation. If this works, the stock will quickly re-rate much higher. Though it is possible that the CMS could only give them partial payment. There is a small chance this doesn’t happen until early 2024, as well.There are several insurers in Europe — especially Germany — who now cover the product. So this is a working product, a real business that serves a real need like nothing else, and it’s cheap. And in healthcare stocks, it’s all about US insurance. The Street rarely cares about junior biotech or medical device stocks unless they are covered by US insurance.The fundamentals appear to support my purchase here, and the US insurance catalyst could give me up to 10x upside.Source: Company WebsiteSource: Company WebsiteThe technology discussed was developed at MIT and Harvard Medical School. It picks up weak nerve impulses from the brain and allows the patient to move the elbow and wrist. It gives a much more precise movement than spring-loaded braces. The MyoPro technology does a cast of each patient, and it’s a custom fit.They were selling through orthotics distribution channels, but since 2019, they have been selling and working with patients directly to get insurance coverage — with some success, as revenue numbers show.It’s estimated that just over 1.5% of people in the US, more than 5 million people, live with some form of paralysis. It could be stroke, spinal cord, cerebral palsy, multiple sclerosis, or an accident of some kind that causes this.A pediatric version of their product is expected to get approved by the US FDA in early 2024. Myomo is also going international now, with an initial license fee received in China, and China’s FDA is expected to approve it. Australia’s National Disability Insurance Scheme, or NDIS, recently started paying for MyoPro technology, as well.A recent financing at 35 cents could give the company a cash runway to Q4 24, assuming no growth. But should the company perform, the stock may be a highly asymmetrical winner for me.Source: Stockwatch.comYou can see that the stock got crushed in the last 18 months, from $13 to 35 cents. The explanation I got was:

Sales growth stalled as they switched business models to more direct selling and not so much via distributors. Now, both product sales and backlog are increasing, international expansion looks a bit stronger, and two small-cap funds have given them enough money to make it through to the promised land of US insurance coverage.The stock did nothing for a couple months, and then it moved up to $1 in September. After the company announced that their MyoPro product had been re-imbursed by smaller, regional companies, the stock took off as investors quickly priced in full CMS, nationwide approval before the actual CMS date on Nov. 29, 2023.Myomo is now gearing up for a huge year of growth in 2024. They have a long list of patients who will now be covered for a MyoPro arm brace. I see a great year ahead for Myomo, as well as the two other top picks I have for 2024. Additionally, shares of Myomo have been on a terrific run the last 30 days, and I still see potential for 5X returns from here as news flow ramps up.More By This Author:StealthGas: A Sneaky Play On LPG?Oil Market – Tightness Vs Strength There’s A DifferenceEach Bear Market Seeds A New Bull Market It Just Needs A Little Sunlight To Grow