Re Interims28 Mar 2019 10:52
To be fair Troy, we already knew about the additional 500k order from the trading update in Jan. However: 1) the income from that order has yet to be received and that, plus the expected tax credit, provides a nice cushion against spend in the current half; 2) I am hugely encouraged by the shift in language about further orders from the DoD which has moved from mere hope in the trading update, to expectation now (‘With more expected’ is pretty confident, albeit in the ‘medium term’ whatever that may be; and 3) the 25% growth prediction excludes any further orders from the DoD or for that matter any new uptake of the assays from any other source, so it’s pretty conservative. The additional 7 registrations in other countries is great, albeit expected, but what I like is the reference to possible ‘national programmes’ which sounds a lot more promising than merely ad hoc sales to individual labs. Overall, I am quite pleased, although yes, we will clearly have to wait for more substantial sales. Nevertheless, with cash at over half our market cap, we are in a strong position and I am happy to wait. As for the share price, who knows? All it really needs is for a few more PIs to buy into the story, or better still, one of the IIs to buy more on the open market, and off we will go. Conversely, of course, if people get fed up waiting and sell, we could see further drops in the short term. The good thing is that we don’t have anyone simply trading this share and, with a minimal free float, we could do well on any positive catalyst, like another order from the DoD, or WHO approval, which I see is anticipated before the end of the calendar year. GLA and DYOR.
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