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Let’s hope that the leak is a reliable one
Fact is the RSI dropped to a ridiculous 19 and with a market cap of below 5m many who understood that jumped in yesterday to average down etc.
Well that’s what I did.
Penny has a perfect opportunity to drop some positive news before results to get this party started.
Hopefully we test 12p early and break it with volume and momentum. If this happened we could see a vast rise to high teens. All possibilities but as we know these markets are unpredictable.
Still most 80-90% down so let’s get it into perspective.
Penny over to you to drop the news
Some decent buying yesterday but will we get follow through.
Still a tiny Market Cap compared to similar companies like ABDX who are burning cash. Not knocking ABDX because I’m that also but MHC are the ones with a healthy balance sheet and no share dilution etc.
At breakeven point!!!!!!!
All we need is demand for the shares to keep up. Once selling price rises we can move up again. Hopefully good news about new products on the 4th and a new chapter for MHC begins.
Only roughly 35m shares available on open market!
It’s easy to see a huge push upwards if demand for these continues.
All we need is any positive news on sales of new products and this could rocket.
Equally the opposite it not good news but one hopes Penny and Chairman have been busy doing deals to coincide with results up to December 31st due on June 4th.
30% plus of shares tied up!
If only I had more spare cash
I like the fact this has a good level of cash, but I don't love how quickly that could end up being burnt through, if they aren't able to replace the Lateral Flow Revenues.
The other products look promising, but are they really getting the traction they need to be?
There's an argument to suggest it should be trading higher than it is, on cash alone, but if you're valuing this on future outlook, you have to ask about how ambitious the BOD are and is that really factored into the current SP? AIMHO, GLA, DYOR.
MrM
I take on board your views however given how terrible many similar companies have performed and had to dilute many times to survive I personally feel Penny and the board should be commended.
Many may say I’m biased but MHC have been the one company able to make money from Covid sales after the endemic. Revenue that has enabled it to remain with a strong balance sheet and self sufficient.
I think all of us including me would welcome a growth plan strategy to enhance future revenue. One thing is we have opportunities to expand and remain in a strong position compared to peers however the markets haven’t rewarded MHC accordingly in my opinion.
Many said MHC would run out of cash two years ago however it has proven it has a prudent board able to manage cash burn to the extent it is on the verge of breakeven. Yes it has challenges ahead but if the wellness and wellbeing market has the support of an incoming government who truly wish to help shorten waiting times to see a GP then MHC is well placed to enable its tests to be used in a smart cost effective way.
I personally feel MHC should share a similar valuation to ABDX who truly have a cash burn issue however almost 2.5x the Market Capitalisation.
Penny should relish the 4th to demonstrate the future of MHC and maybe reward shareholders with good news and a potential dividend. I expect positive news on many new products however it’s still in early stages of traction.
The 4th will be interesting.
https://www.britishbulls.com/Default.aspx?lang=en
Https://www.britishbulls.com/SignalPage.aspx?lang=en&Ticker=MHC.L
It’s at a critical point after recent rise. 200 EMA needs to be broken to truly confirm we are out of a negative trend at 12.5p. Still happy to see it rise over the last few days on relatively average buying.
Any pent up buying pressure and we could break out!
Https://finance.yahoo.com/news/theres-no-shortage-growth-recently-083330384.html
Seriously no one expects a multi bagger but can Penny get it back on track to better times moving forward.
Surely given its share price decline despite its cash position it due a re rate.
If Markets don’t get behind companies like MHC who have been prudent with cash through tough times you have to question the whole existence of stock investing.
Many companies end up private as a lack of value and support makes it impossible to grow if share prices are subdued because it’s impossible to use paper stock to leverage in order to finance deals to make acquisitions.
Imagine how many smaller companies MHC would have swallowed up if it was awarded its true valuation based on market average.
Is a market cap of less than 6m justified for a company with cash probably in excess of 8-9m despite reinvestment (ROCE).
Many will say I’m biased but if we look at the books of MHC compared to competitors it’s not difficult to see MHC have embarked on cash building rather than revenue growth. Can they now embark on a plan to grow revenue!.
Penny is at a critical point and must win the markets over with a convincing plan to grow revenue outside of Covid revenue.
Hopefully some positives in the results however I hope we see through Covid revenue slowing and concentrate on new product sales
Https://news.sky.com/video/general-election-tories-would-free-up-20-million-gp-appointments-by-the-end-of-the-next-parliament-says-health-secretary-13146752
Can MHC eventually benefit and help the Government reduce GP appointments by encouraging them to allow pharmacy’s first to take up some simple tests that can be performed over the counter on the NHS. Will they expand the already 7 tests allowed to be increased to include MHCs tests. Is this why Boots are starting to have their own brand in Iron tests and vitamin D tests etc. Will Penny offer any information regarding plans. The time has arrived for a detailed strategy outside of Covid Revenue.
Will long term holders get some good news or will it be an opportunity missed