The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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And the reason its significant is because its theyre sector selection !
The reason motley fool may be on the negative / neutral side for ncyt is because theyve been pushing judges scientific for some months now.
Its certainly a factor to consider anyway despite the actual remits of the companys are wide apart in my opinion
Fool by name, Fool by nature.
I normally find doing the opposite to what this lot say is better than following the advice they give in their articles.
Incompetent journo.
With all that's going on with the company it doesn't seem to have been researched at all I couldn't see any brokers recommending buy or sell.
Think the interims will put us on the map for the ii and broker notes.
What is becoming clearer by the day is that the market is viewing this as a one time chance to make hay whilst the sun shines. Forward projecting to say 2022 it imagines novacyt using this one-time cash injection to build the company into a £200m business with a turnover of £30m ish a year.
The slightest whiff in a forthcoming rns of a substantial long term partnership with DHSC or any major administration and this would let the brakes off.
Yes MF offer a paid subscription service.
Looks to me that they know ncyt is a popular share so they are using their name to get people to read the article then click on their link of the other share they talk about on the link. Which I imagine to read that you would have to pay MF subscription.
Wow that Motley Fool article is so stupid, what on earth are they do trying to achieve using the 2019 revenue as a price to sales multiple?! I’d say it’s deliberately misleading to be honest - applying that type of prior year analysis to any share that’s changed materially would produce a ridiculous result. They should be embarrassed to publish such utter tripe.
They're absolute buffoons, just ignore them.
Or rather, when they say 'sell', it's usually a good sign to buy.....
Future potential earnings are not considered at all and they have estimated the whole of 2020 earnings to be £120m which we know is wrong. No consideration for future innovation and products. I would do the opposite of whatever fool say they are clueless.
(continued)
Am I right in thinking they said sell NCYT at 60p as well?
They have an agenda there is always a link to their subscription page.
I wouldn't worry about Motley Fool they are all over the place.
They were recommending airlines before the massive falls, carnival etc and then advising people to sell them a few weeks later. There are other examples of this with their recommendations from buy then to sell. They like to mention Buffet a lot but Buffet holds long term not a few weeks or several months.
They were happy to recommend Open Orphan a few weeks on 18th May as their punt for doubling up and the share price was 15p on that day. They were quite happy to present that company as having long term revenues even though as I understand it the excitement has been around covid studies
This is what they said about ORPH:
"The AIM-listed company has seen a dramatic rise. Since January the share price has grown from 5.5p to 14p. In that time, its market cap has surged from £30m to £78m. Most of that is down to froth, rumour and hype from its potential Covid-19 antibody test."
So most of it is down to froth...hype but hey folks still take a punt on what we have just said is an overvalued share because we think it will double your money. If they were any good they would have recommended the share when it was half the price instead of Johnny come lately.
The writer also says in that article he holds shares in ORPH and that he may therefore be biased. I wasn't impressed by his arguments for recommending the share. Orph is doing the covid challenge study's but I think it is funding them itself? Has Orph actually secured any contracts for these covid challenge study's?
There may be a better case for investing in Orph but that was not made out by MF. I haven't got anything against Orph and the reason why I mention it is because in the same article they were saying again don't buy NCYT but instead buy Orph because it is likely to double (NB they talk about Buffet a lot but Buffet doesn't invest in a share because he thinks it will double quickly).
Analysts have already said that covid and it's impact may be around for years. As you say it doesn't factor in the 5 billion Government contract and NCYT has shown from the past that it can successfully grow through acquisitions. The organic growth should keep it going for perhaps several years. If they want certainty of income well you don't get that with any business do you - look at your airlines that you were happy to recommend do they have that certainty of income Motley Fool? Well one of the most successful investors ever Buffet doesn't think so anymore. Aha eureka is that why you recommended selling them some time after because Buffet had sold them lol - you were aware of the virus when recommending them so your research wasn't all that was it? All over the place.
They seem very confident on a vaccine when the scientific community say they do not know if one will ever be made or how quickly and how effective it will be there is merely a hope one will be quickly produced no one can say for sure.
Am I right in thin
Personally I'm not as negative about the Motley Fool as others - as with anything some writers are learned and helpful and do their research and others don't. But this recent one is infuriating: https://www.fool.co.uk/investing/2020/07/06/novacyt-shares-have-soared-are-they-a-buy-right-now/
Anna highlights the fact that novacyt failed to make a profit in 2018 & 2019 so instead compares price to sales. So of course she uses the £120m figure or at least some sort of middle ground between last years sales and our sales up to now for 2020... no she uses the £11.5m from 2019! This gives a figure of 17.8 compared to the industry average of 4.2... 2020s price to sales should be less than 1.5 following the next update and that's after just 5 months of selling covid kits!
There is no mention of the huge amounts of money the government is planning to invest in building up the UKs diagnostics and the relationships novacyt has across the globe. She also talks about competition but seems to have no knowledge of how hard other pharmas are finding it to get their products online.
This does give me hope however. If this is the level of research most people put into their investments then maybe we are right after all and it will be everyone else playing catch up??