RE: Potential1 Feb 2022 13:22
To be fair belgrano this share carries risk as do all growth stocks, they are after all the other side of the coin to opportunities, The share price soared between the 25th May and 26th Oct twin 75p peaks averaging in the 60s based on the Opportunity spotted by the market with two disruptive products. In those heady days of low inflation any growth stock worth its salt also had similar high valuations based on the potential of future income. Roll forward to the present day and all those opportunities are now seen as risks with concern that the jam tomorrow wont arrive in time to offset the increasing costs of wage inflation and borrowing, hence the huge 50-60% share price pullbacks.
I remember the heady talk of 25000 soft launch targets (re-read the May 17th Lemmings Newsletter if you doubt this), now the perception is that a figure the tenth of this for the immediate future enabling break-even to be reached, should be considered a success. Not saying the company haven't excelled themselves to deliver what they have in the timescales and difficult circumstances , just that expectations for short term revenue have been lowered and the market cap now reflects this.
It was therefore heartening to read that the Beauty Parade has taken place, that Sederma with their 600 litre in less than 24 hour manufacturing capacity, is sufficient to keep the dozen or so preferred B2B customers supplied with the skinbiotix ingredient, and hence enabling them to launch their products as soon as they are ready and more importantly to steal a march on the remaining 12000 or so non-VIP customers whilst they await the 12000 litre scale-up from the Croda manufacturing site. Yes, Skinbio certainly carries risks, but they are slowly but surely reverting back to opportunities and the share price should quickly follow
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