Fundamentals are all that matter.29 Jun 2020 12:35
Just to strip this back to the basic business fundamentals you should ask yourself before investing in any share. Just focusing on the Covid stuff and not everything else in the pipeline.
Is there a market for the product and how big is it / could it be. Niche / wide-spread / mainstream / global.
What are the profit margins. Low / mid / high.
What the competition. Better / same / worse.
How close are the company to bringing the product to market. Years away / very near.
Are they funded and capable to do it.
For me, AVCT are developing the most in demand product in the world right now (you could even argue most in demand in the history of mankind!). The entire world is the market and they all want and need it desperately. There are good profit margins (especially in the private sector which should not be over looked, there are millions of wealthy hypochondriac types out there that will buy a lot of these at £30 each) They are only about a month away from bringing it to market and already have the funding and distribution line set up to do it.
I think the main reason for the SP fall is simply that Covid stocks are falling out of fashion. Put the fundamentals and answers to them above to some new Tech company and the market would be valuing it in the billions before their first product came out. This is, in my opinion the market in denial. High Covid stocks mean bad news for all other stocks and it seems the markets, and general public refuse(for understandable reasons) to accept that covid is anything other than getting better, when all data is tells us it is still getting worse.
The fundamentals above mean (to me) that AVCT and this SP will do very well. Sooner or later the market will wake up again to the importance of this share and with the right fundamentals the SP will look after itself, just a matter of time.