My view21 Mar 2020 06:25
Right,
Under any other circumstances, the RNS issued on the 12th March (£2.3million worth or orders), should have been sufficient to boost an already effervescent share price, far higher than the £1.50 it has struggled to breach since.
But hot on the heels of that was another update (16th March) which not only included both the endorsement and ordering of the product (test kits) by PHE, the order being the single largest by any customer, at the time, it bought the revenue received (or due to be received), to £3.7million. Again, in normal circumstances, the SP would have rocketed - it had already been above £2 during during a day of turbulent froth.
The RNS on the 12th referred to the number of countries being supplied, doubling to 50, four days later, this figure had risen to 60.
Another four days on (today), we have another [**insert superlative here**] RNS.
Once again, there's a modest reaction during the 90 minutes of trading 'post release'.
But now we have a weekend for reflection, of what Novacyt has:
There's a steady & frequent flow of lucrative deals being announced,
New demand from all corners of the globe,
PHE endorsement (surely more than the 8 UK hospitals mentioned, are to be supplied),
A series of 10k purchases (speculation sure - but could be institutional?),
Production capacity being 'ramped up' & 'contracted out'.
- that 'ramping up' & 'contracting out', could happen under licence, in the US.
Cash call prospects recede as more revenue than they could have imagined arrives,
and demand is only going to increase.
'Buy out' a possibility?
What's not to like?
- OK, the company doesn't pay a dividend - but how long until they do?
Finally, to put this into context, whist the financial accounts for 2019 are not yet available, the total sales revenue for all of 2018, was less than £12.5.
People are slowly waking up to what a massive steal this is, at just £1.20 a share.
There are 57,120,000 shares in issue - do the maths.
One doesn't usually look forward to a Monday morning. However...
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