RE: based on the RNS should this be near 500 a share? confused why this is still so cheap18 Aug 2021 12:37
That's very fair 21ATS but it is where I see Novacyt starting to go as well. The fact is that they have moved from probably 90% dependence on DHSC to currently probably less than 10%.
It might not be through desire or design but it may actually be the best thing that could have happened whilst they are in a strong position to manage and cope with the tap being turned off in that department. Most rapid growth companies have an element of luck (like yours did) and Novacyt was also in the right place at the right time (unfortunate as the circumstances were with the pandemic).
They are in an incredibly strong position now. The worst possible scenario with DHSC is priced in and more. This share is undervalued many times at the current price. It has no debt, cash in the bank, a much more diverse client base and a shed full of non-covid related products now and in development. The bioinformatics side is not just covid-related. The world we now live in is going to required their services for the foreseeable future. The money is there for sorting DHSC, making timely and appropriate acquisitions/mergers and to secure a sustainable and profitable future. Add the continuing recruitment and the current pool of expertise and the sky is the limit.
I am very optimistic about this mid-cap in the making but that is only my opinion of course. GLA