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@mapper99
Sounds logical to me, the move to reporting in sterling was the start. The opening of Novacyt Inc stateside also big move. My best guess is move to NASDAQ
We need to do something....
Porky
I agree with your sentiment. Having reread the Annual report, it seems illogical that this is the valuation. One thing I have been tracking is the proportion of trades on the two markets. Last April, 80% was traded on Euronext. Since September I have been tracking the ration between the two and in the last few days the ratio has AIM as about 52% of the trades. My feeling is that French traders have been gradually dumping the company and UK traders have been picking up them on AIM. GMs decision to publish accounts in £ is just the latest manifestation of this trend. If this trend continues I suspect in a few months we will trading 75 in UK at which point we will leave Euronext. Does this sound sensible?
Mapper
Now i mentioned this business the other night as it is directly in our space.
This post is not to criticise this business but as a mere comparison, one of many
I fully accept that i have a total bias towards Novacyt, lets park that to one side, but this business is worth 50% more than our current value and its a fraction of what Novacyt do imo. It is trading on a PE of X30. We can't even make X2
Now, if you look at this other business and its results statement:-
https://www.lse.co.uk/rns/EKF/final-results-gsvtun68q95mmpj.html
You will see that they delivered £ 65m of Revenue , EBITDA was £ 25m and it has CAB of £ 20m after debt paid back. Doing well. It is 100% on AIM and NOT on the crappy French Bourse.
it has 442 m of shares and doesn't get plagued by shorter's.
it also spent £ 5m on dividends (Token Jesture)
Now in relation to Novacyt, we have world class R&D, world class Bioinformatics team, distribution network extending to 150 countries, the only assays to detect all known Variants, POC technology, Stateside division, £ 277m revenue, 176m EBITDA and 92m cash at bank - I mean come on FFS.
The DHSC dispute is over £ 20m of product. If they refund all invoiced revenues to DHSC we are still materially in a different league to the example shown.
So excepting the DHSC issue, the big elephant in the room here is that Novacyt has a small amount of shares in issue, is easy to manipulate due to low volumes and lack of II involvement and shorting vultures mainly in France but we have our own scum bags UK side as well, have just totally cannibalised our value constantly citing the DHSC issue yet, DYOR, strip out the disputed invoices and we still come out way ahead.
Sooner we get off the Bourse the bloody better frankly... i genuinely believe this is a massive contribution factor, oh and that ****e outfit ODDO don't do us any favours either...
Ultimately, this will re-rate and whilst the SP remains depressed in this way i am just going to keep adding every month, absolute no brainer...
GLA
@Ad4you
Thanks, very kind of you to say, Wishing you well with this investment.
I will continue to add here. I thought the results today were fantastic. We had the clarity required. The H1 due out shortly will be solid, the average diagnostics business even doing just £100m a year revenue is valued more than four times where we are tonight, the valuation doesn't make any sense at all.
Add to that the new product lines due to add shortly, its world class R&D, one of the only tests on the market that detects all VOCs and it makes the valuation even more ridiculous. Clearly out of love with some retail sentiment but that can still change. I remain positive.
The forward plans are expected with the H1 shortly and we should know if the LFT secures "Home" use and the partner arrangements. Also sounds like an acquisition is planned shortly. Once the DHSC issue is closed off even better but at least we know worse case scenario now which i also take as a positive.
I am actually more confident about the company today than i was yesterday! As for the share price totally disappointing and materially undervalued but it is what it is.
GLA
Porky - Thank for all the time and effort you have put into this BB its much appreciated.
We all know that it is a challenge to pick ourselves up when the SP takes a constant pounding when GM is building such a great company, it defies logic!
It's also a great shame that some of those such as Blue & Shearclass that have had such positivity about this share and have done so much research for the good of all on this BB have decided to step away - hope they will be back soon and we can soon all celebrate with the correction to the SP that it deserves.
We obviously cover loads and loads and loads of examples and it doesn't change a thing but;
even EKF is better rated than us and we have world class R&D and doing significantly higher revenues. See:-
https://www.hl.co.uk/shares/shares-search-results/e/ekf-diagnostics-holdings-plc-ord-1p/financial-statements-and-reports
So it has a £ 341 mcap
Ann Revenue £ 65 m
Profit £ 11 m
CAB £ 21 m
Our mcap tonight is now £ 239m and look at the figures declared and forward earnings expected to be £100m+
Seriously we should be at absolute bare minimum of twice our current SP and multiples of that with a decent PE Ratio assigned. Its utter madness and i fully understand why SH are frustrated.
Porks.