************** articlevin full31 May 2020 22:33
Novacyt/Primerdesign and why to invest!By Chris Bailey•31 May, 2020Novacyt are just one of the Covid 'hot stocks'that have recently emerged since the beginning of the pandemic. Already an international specialist in cancer and infectious diseases, with a large global presence, this company already holds a strong position on the world of oncology, microbiology, haematology and serology testing. Their move to Covid-19 testing was extremely swift, placing them at the forefront of test kit development, manufacture and sales. Quick to receive World Health Organisation approval for their 100%accurate, gold standard kit, with their global relationships, they teamed up with various large Pharma's including one of the biggest, most recognized and respected companies in the world, Astrazeneca. Incredibly, within months, they negotiated over half a dozen manufacturing agreements, increasing production from 2 to 10 million kits per month. an enviable achievement and an incredible revenue stream. It is highly likely this revenue will exceed the present market cap!There are of course other companies jumping on the bandwagon, many announcing they have their own products, many still awaiting approval. Social media comments and excitement over investments have projected these companies to a new level of 'overvalue' They may have a kit, it may even be better, faster, cheaper. However, even when or if they are approved, they then await the manufacture and building of customer base. Novacyt are so far ahead on this scale, the demand is so great in all the countries the company have agents, catch up would not be an issue for a long, long time, if ever.In addition, manufacture could never amount to the level to meet world wide demand. One thing that confirms my belief in my investment in Novacyt is the quality of the team working together with Astrazeneca, SmithGlaxoKline and others. Already at the forefront, they are continually developing their test. Very soon to launch a faster model, they are working 24/7 to remain in prime position. It's a very exciting time for shareholders right now, with an imminent update on many fronts, from revenue and sales to new equipment releases.There has been a lot of debate recently over trading action. Regardless of buying exceeding sales, the share price seems to be locked in at approximately £3.00. We have seen purchases of 100k-300k showing after close. Theories abound from take over to institutional positioning.The recent director buys could suggest a take over on the cards as shares by directors are rarely cashed in unless a take over is undertaken. They certainly didn't really need to buy as a sign of confidence after confirming the level of kits being manufactured or the demand for them. But whatever the reason, take over, institutional buying, the present valuation would look incredibly l
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