RE: Confidence18 Feb 2021 14:40
@Ventura1
Hey, I can understand the frustration, I totally get it and yes an "Operational Update" or at least some PR would reassure concerned shareholders and would be "nice" to have. But seriously, they continue to deliver actual results, not hype but actual real results at ground floor and this is what counts.
I know other stocks with zero fundamentals are rallying on pure "fresh air" and media "Hype" and this hurts especially as we have lost 40% since Results whilst they continue to deliver. It is one heck of a business, as I keep ranting on, its exponential growth on a whole new scale but moreover a business built on solid foundations. It is profits now are exceeding that of ASOS the number one business on the AIM, yet our share price does not reflect this, and the business remains materially undervalued but this has to and WILL change. Novacyt don't do style over substance.
IF you are in any doubt what so ever, you contact the company and put your concerns to Investor relations directly?
But to save you the time, this is an extract from a recent discussion i held with the main man himself:-
GM said to me recently to quote: -
“We are building the foundations for a significant diagnostics business by ensuring we deliver performance, create expectations that can be realised and not to ramp the business. I know many companies that may have a different philosophy to us but in my experience hype without substance will always end up in misery”.
“Can we improve communications? Yes, and we will do so in time but not without ensuring the business continues to deliver first”.
He was very bullish about what they are doing BUT the focus was clearly on continued DELIVERY. I made it clear that PR needs to improve and that shareholders were concerned. They have five sets of advisors working with them, but they must shout about success at least some of the time. He totally 100% got the message. He knows the market, he knows how to scale a business and as i say, they are delivering substance NOT talking about "what if's"
He further added: -
“Junior markets are sentiment led and despite fundamentals can react irrationally as we are seeing currently with the Share Price. IMO eventually sentiment will catch up with fundamentals. If they do not, then we can leverage these fundamentals in a different way to address the fickle nature of junior markets”.
So there you have it. I totally get the PR argument. Some companies put out as many updates as there are days in the week but ultimately it comes down to what is delivered by the business. Without any major contracts or acquisitions or new product roll outs they are currently on course for north of 173m EBITDA in this FY year and a cash pile for acquisitions of 278m - this is the reality. The stock is now ridiculously cheap and oversold. Read the broker notes, this is pure quality:-
https://novacyt.com/wp-content/uploads/2021/02/SP-Angel-Update-04.02.2021.pdf
Good Luck all
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