Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Totally agree on the partnerships point, once they sign the first major contract others will follow. I think it's also important to note RENX are trailblazing with KidneyIntelX and prognostics and with no precedents to speak of in Renal the market is at high risk of calling this one totally wrong. LT Buy, wait for the big news announcements and then load up!
Can only put this down to Verici being a micro-cap with very low liquidity. The shares tanked on less than 100k shares this morning and no-one, including market-makers, have any appetite to be long any type of growth stock in the current market environment. The share price to opportunity ratio is ridiculously low, house broker Singers are valuing the shares at 76p, however with the market being in risk-off mode it's tough to see that being achieved before Verici start accruing revenue and real-world clinician feedback later in the year. I paid 22p this morning, silly price, given over half the market value is sitting in cash in the bank!
https://www.**********.co.uk/articles/vericis-latest-tuteva-trial-data-paves-the-way-for-us-launch-2529e49/
Conclusions - Clinical Validation Study Data for Tuteva (Blind Study)
• Validation in an all-comers cohort that is independent of the training set and representing all forms and levels of rejection is essential to assessment of expected test performance in translational clinical care settings to support medical management decision-making.
• Prospective, multicenter, international studies allow for the inclusion of diverse populations and broad diversity in care management practices while allowing blinding to protect from the introduction of biases; thereby producing robust and reliable results for clinical integration.
• Tuteva is a quantitative blood-based transcriptomic signature able to correlate an acute rejection risk score with rejection phenotype based on histopathology in the kidney biopsy, representing a level of evidence which has not yet not existed in biomarker transplant biology.
Think the market has got this all wrong this morning, this is a Blind Study and the conclusions are clearly very positive for real world use and the company is on track for commercial roll-out later this year. Verici will soon be eating CareDX's lunch in diagnostics for kidney transplants.
Shares offer ridiculous value to those willing to take a view on a fantastic growth story that will soon be playing out in a real world clinical setting. I am a holder and have been adding to my position since their recent fund raise.
Seems like the wider sector is bouncing back from all the overzealous shorting and negativity, double digit % reversals common across the board in the US on Friday, about time too! Companies like Renalytix have an incredibly bright future ahead. I have been buying into this weakness, happy to tuck them away in the long-term portfolio.
Completely agree, way overdone here, brokers like Shore Capital have seized on Alex Scott's comments about negative headwinds to bang the bearish drum, however these are the same challenges facing all businesses and not exclusively IntegraFin. Net inflows at record high, progressive dividend policy (fully intact) and investing for the future. This is a very high quality business with a decent moat around it. I see this stock as a diversified market proxy with a revenue kicker in turbulent times due to higher volumes. Added to my long-term position yesterday and buying more today.
I think it's also worth noting that this is sector-wide and not particularly stock specific, doesn't make anyone feel any better of course but this will fly and outpace the market on the rebound just as soon as either a) the company delivers a positive surprise on earnings, partnerships or deals, or b) the wider sector recovers. I'm also convinced the short positions of Millennium Partners and Armistice hedge funds remain in place, I believe they've switched them into swap form to evade having them reported, though not sure why they would bother given they only account for 1.8m shares (reputational risk perhaps?). Total short including the ADRs amounts to 3.3m UK shares, still tiny in the grand scheme of things but they'll need to cover at some point won't they.
As far as I can see the three brokers who cover EKF have all updated their forecasts and views since the FY21 results update and all are rating the stock as a Buy, with the following price targets: Panmure Gordon 60p, Investec 94p and Singer Capital Markets 62p
DYOR but my humble view is that EKF have adeptly navigated the pandemic and positioned themselves as a much stronger, sustainable growth business and once the covid-blip is out of the way we should have greater visibility on the breadth of the growth opportunities ahead!
Thanks SB, though we differ on the point about Millennium shorting as the shares have been going sideways for just over a month now and in that time Millennium have increased their short four times. This suggests to me that the buying has been picking up and the short is no longer having a negative impact, in fact if we see the buying increase further we could see Millennium's short become something of a tail-wind for the shares. Following the recent update from management if we start to hear that testing revenues are accelerating and or that strategic deals are being struck then the shares could well be back at the £5-£6 level in no time. I am a buyer here and will continue to add steadily. DYOR etc.
So the company has now completed their buyback program and we can return to usual liquidity levels. The shares are arguably now discounting revenues and earnings to just above 2019 levels and this is well overdone (IMHO). The market seems to be saying covid-related Contract Revenues are going to zero which is utter nonsense as they're still ongoing (albeit declining), and the company are shifting their Contract Revenue manufacturing resources to higher margin (non-covid) opportunities, what's not to like? I am buying shares below 40p for sure, frankly happy to buy up to the 50p level and add to the long-term portfolio.
re: share buyback, I understood from the presentation yesterday that this is actually locking in value, as the 9mln shares essentially cover the shares issued to fund the ADL acquisition which was agreed when the shares were over 80p. So buying back now at 45p level is locking in the cost of the acquisition at a cheaper level, pretty neat and making something positive of the recent share price drop.
Agree with you SB and I also think this is well over cooked to the downside, hedge funds have taken up 100% of the available stock loan and gone short, stocks like CareDX and Exact Sciences are down heavily too, not to mention Cathie Wood's ARKK fund which is -70% from its highs so it's fair to ask if this is stock specific or just market-wide negative sentiment. Results are due March 24th and I would expect a fair degree of narrative around cost management, revenue growth, deal pipeline and partnerships to support a much higher valuation. This stinks of being completely opportunistic by the hedge funds and the timing is truly unfortunate of course but there must be more than one way out of this, not just for RENX but for the wider segment of early-stage growth stocks.
Think this is a very smart move by Monique and team at Trellus and I look forward to hearing more about the early adoption rates and feedback from IBD sufferers on the ground. Good luck team Trellus!
I think it's tough to see this latest drop as being company-specific, anything relatively early-stage is getting crushed, just look at Cathie Wood's ARKK funds, big and small alike are down heavily across the board and UK small caps are no exception.
In contrast to this Renalytix are more than delivering on their milestones, roll-out, new sign-ups and partnerships. Their revenue is in the early stages of ramping significantly and they could soon be generating revenue well in excess of their current market value so I see this latest drop as being a short-term liquidity crunch being exacerbated by a couple of hedge funds who are happy crushing retail investors for a quick turn and with daily liquidity at barely 50k shares, it’s not hard to drive the price in either direction.
I see this as a great opportunity to pick up some heavily discounted shares to tuck away ahead of the company’s next update in March. GLA.
Think this is spot on and I would add that small cap liquidity is light at the best of times and holders should expect or anticpate swings like this as part of investing in this market segment. It's not stock specific, there's a market-wide liquidty drawdown in play with risk premiums increasing as part of rising bond yields. In the meantime, the company continues to recover, grow and invest in future growth, plenty of cash in the bank, no debt and paying a dividend, what's not to like?
https://www.insidermedia.com/news/wales/first-half-revenues-soar-as-ekf-looks-ahead-with-confidence?utm_source=wales_newsletter&utm_campaign=wales_news_tracker&utm_medium=top_story_article
This little gem from Cardiff is going from strength to strength, has to be part of the long term portfolio, surely!
Great summary of where Renalytix is at Scoobydoo321, looks like they have plenty of cash to see them through to profitability and good news about Kantaro's SeroKlir antibody testing receiving EUA in the US. Important to remember SeroKlir and SeroIndex have both already received the CE mark in Europe and EKF Diagnostics has the manufacturing contract for both, EKF have a long proven track record for scaling production successfully and quickly. I like your point about measuring immunity and knowing when anyone may require a vaccine or a vaccine top up as nobody knows yet how long immunity lasts. I agree with you this feels more like we're at the beginning of something rather than the end for antibody testing and we're only just seeing the early days of what KidneyIntelX can and will do, I think this is a clear buy and hold story.
Solid earnings upgrades across their core businesses, PrimeStore firing on all cylinders and Antibody testing coming on line imminently. Plenty left in the tank for 2021-22 by the sounds of it and the shares are cheap too at 18x current year analyst forecasts which they've said they'll be "comfortably ahead of". Party on.