RE: Re-Rating Considerations6 Jan 2021 17:44
Porky-It's very simple- No ONE can put a value on NCYT. You cannot use any multiple as 95% of profit is coming from covid tests. If you had the answer to the following then you could some kind of valuation here:
1. How much cash has the company accumulated?
2. How long are covid PCR tests going to be required for?
3. How many are we currently selling each month?
4. Where will future income come from and how much can they generate after covid test are no longer required.
5. Are there better products avail now or in the future rendering NCYT's tests outdated?
Like everyone, I do not have any of the answers, but IMHO testing will be required for many years to come. Even when the wealthy countries get immunity, it will take years for the world population to reach that status. In that time, NCYT would have built up a considerable amount of cash and at some stage will use it to change the direction and earnings outlook.