RE: What is your reason for holding NCYT?29 Apr 2022 12:36
While I would love to have sold at £11-12, I am still holding for a few reasons:
- I believe the DHSC dispute will be resolved in our favour. And even if that’s not the case, I do not believe for a second DHSC will be able to get the full amount they are asking. IMO worst case scenario is some sort of “shared responsibility” resulting in DHSC not paying the outstanding invoices, but no further cash leaving NCYT.
- NCYT is willing to focus on the most profitable part of the company. I welcome the closure/disposal of lab 21 and microgen, and also the aggressive focus on reducing opex they have mentioned.
- the focus on building a stronger, internal distribution network means more margin and more control of the relationship with clients. The US by the way is a huge market that we have just begun to work on.
- the regulatory landscape will squeeze smaller player out, and given NCYT’s desire to focus on areas not covered by big firms, this hopefully means the company can carve out a nice niche
- R&D capabilities are second to none, and IP protection for our innovation means we can a) protect revenue and b) get tax rebates.
- some of the relationships (WHO for example) are extremely good and could open lots of doors
- the focus on other areas (transplant etc) I am not able to judge but the way they describe them makes it sound promising.
- the focus on POC/near patient settings, with the ability to produce and sell our own machines (Q16/32, and potentially new products too) will definitely present new opportunities. imagine if GPs had Q machines and could test their patients directly at the practice. (To be honest I think NCYT should give the machines for ‘free’ to increase distribution and only charge for tests… but that’s my opinion)
Overall though this has transformed into a long term holding. I would have preferred to make some quick money ?? but I do believe long term this will turn out to be a good investment.
GLA!
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