Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
In Motkey Fools analysis they use a price to sales ratio to calculate the upside and use Quest Diagnostics as a bellwether. In reality you’d never use the s/p ratio in its own. For example, quest have circa $4b of debt, an s/p ratio doesn’t take this into account, Omega is debt free.
No self respecting analyst would use this indicator as a single guide. I understand why they have used it as there are currently no earnings and Omega is a fledgling company.
I did my own analysis yesterday on a potential PE ratio, Quest diagnostics trade at roughly 17, which is pretty high for the industry. If we were to reach full sales capacity our PE based on today’s share price would be circa 2.5. Now we are unlikely to have a PE of 17 given current uncertainty over future testing demand, but could easily see a PE of 10. That would get the SP to £3.
What a rodent you are DD - did Colin do your Mrs or something?
Just wondered what people’s thoughts were on this.
One thing that surprised me was that it referenced Quest Diagnostics trading at a multiple of 2 x sales. The article suggested that the max upside for ODX was a market cap of £250m.
Lee
Just a thought, perhaps the reason for no announcement of orders is that until ODX know the government demand they can’t give a solid commitment to other costumers as to how quickly they can fulfils orders. As we know, they’re fairly fluid as to how they will fill their capacity. Wouldn’t surprise me if the government extracted a commitment from them that they would prioritise the antibody tests, makes it very hard to sell the other tests (or spare capacity) until the government agreement is locked in. Long story short they have exclusivity over capacity.
Has anyone seen details posted for the dial for Wednesday?
Couldn’t find them on the OD website.
NM
There are some real buffoons on here
So true - it’s hilarious
Up to 150,000 people with no symptoms could be screened for Covid-19 every day in an attempt to stop symptomless spreading and cut quarantine for holidaymakers.
New plans from NHS Test and Trace commit to a mass expansion of testing by September in an attempt to fend off a second wave of coronavirus.
Health officials also promised that a long-delayed contact tracing app will be piloted "shortly", with roll-out by winter.
On Thursday, NHS chiefs launched an advertising campaign with the tag line "let's get tested" to persuade people to have tests immediately if they have symptoms of the virus.
It comes amid growing concern that Britain could face a second wave of cases (see video below) and be two weeks behind Spain in seeing a surge. Officials said the moves aimed to protect the most vulnerable as autumn and winter approach.
The new business plan for NHS Test and Trace commits to a doubling of testing capacity to 500,000 tests a day by the end of October. It says 150,000 tests a day will be available for people without symptoms, including those returning from "high risk" countries abroad.
Such tests will also be targeted at local outbreaks, workplaces, or groups – such as supermarket workers and NHS staff – that are at particular risk.
The plan says mobile units should be sent to places with clusters within 12 hours to carry out "backward contact tracing", which aims to find the sources of outbreaks. People with no symptoms will be tested as part of a plan to "hunt out" the virus among those who are not ill.
Matt Han****, the Health Secretary, has said ministers are looking at ways to reduce the 14-day quarantine, possibly by the use of multiple tests. But Mr Han**** also warned that new countries could be added to the UK's quarantine list.
Health officials said the widespread rollout of "asymptomatic testing” could be used as a route to reducing the length of quarantine. However, it may also be used to keep watch on countries which pose a threat to the UK, meaning it could trigger additions to the quarantine list.
Baroness Harding, the head of NHS Test and Trace, said: "The NHS Test and Trace service is a vital part of enabling us to get back to safely doing the normal things we love, and will become ever more important as we approach winter.
"I urge everybody to get a free test as soon as you experience coronavirus symptoms and to follow the advice you're given if you are contacted by the service. If we all continue to play our part, then together we can stop the spread of this virus."
The latest figures from the Department of Health and Social Care, for the week ending July 22, show that 25 per cent of people who came into close contact with someone infected with coronavirus could not be reached by the service and asked to self-isolate. This was up from 10 per cent when the service launched eight weeks ago.
Has anyone tried to calculate the NPV based on the various cash flow assumptions I’ve seen swirling around the internet?
Sold at 57p earlier in the week, need some air cover whilst some of this plays out. ODX is an interesting proposition FYI.
Hi Moola,
Thanks for the reply, I like your logic.
Reading a fair amount of opinion pieces suggesting cinema is likely to remain closed until Q4.
Perhaps this could thin out the herd so to speak and give Cine a bigger market share in the long run.
Hi folks,
How long do we think Cine can reasonably go without opening cinemas? My understanding is that they have funds to cover 2020 (but at that point is a RI likely)?
I’m long on Cine so no intention to deramp, just wondered what the considered view was amongst punters?
Ta
Has the target price been cut to 40p or to 120p?
Clear a lot holding here we’re looking for a short term gain, let’s hope that most of the sellers have been cleared out.
I think it all hinges on the ability of sales to recover, you’re right if sales don’t come back then it will be hard to recover from. If the talked about VAT holiday transpires then hopefully that will have a positive impact. Will be interesting to hear how sales are holding up... if we get some guidance that they’re pretty strong I think a lot of the risk factored into this stock disappears.
All the momentum traders walking away
https://shorttracker.co.uk/company/GB00B1P6ZR11/
Short position reduced today
Think i may have answered my own question, you can’t sell ion the rights to an open offer!
Hi folks,
I have the rights to circa 10,000 shares under the placement and am planning to sell.
Does anyone know what kind of discount the rights trade at vs the share price?
My understanding is that as the placement price is 75p if the rights issue price was £1 I would get 25p for every share.
Any help is appreciated, thank you.