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“imagine you have over 7m in the bank a turnover of 22m and a market capital of only 12m”
The markets look forward not back. That 22m turnover last year is not repeatable this year on LFT covid revenue alone, which the trading update confirmed has declined since the bumper month of July.
New products with proven demand are required. The board hasn’t been truthful on timelines and reasons for repeated delays. Taking those facts into account the current share price is understandable even if annoying.
The main problem is the launch of new products has been delayed again and they didn’t give a reason. That is shockingly bad communication, especially when they hyped the launch in last year’s interim statement.
As jyee7 pointed out, everything ace said contradicted the info in the update.
Good trading update. As expected covid tests are keeping us ticking over while we wait for the launch of wellness tests. I do take issue with the following though:
"The new product development timeline for an extended portfolio of wellness tests is on track"
It's as if we knew about the new development timeline. The truth is that the old development timeline bombed for reasons they haven't told us.
Did ace2326 read the update?
After waiting this long I’ll hang on for news. Can’t help thinking the board are in the Bahamas sipping Pina Coladas.
This one is well named Ahhhhhhhh
It's time for a new one Sooooooole
The PCR tests made good money. Not sure how much LFTs are adding to the coffers but at least they keep things ticking over. Not convinced they have any appeal for new investors though.
Must be a change of policy, blanking some sites. Bit of a slug fest today with volume perking up.
Indeed. Mercia promised they would become evergreen and they walk the talk.
I agree with your analysis barchid. The chart is showing a steady uptrend. I don’t see us closing the discount any time soon but we should be noticed by momentum investors. Plenty of upside at this price.
The CEO is too good to be sat there twiddling her thumbs. They’re working on something. But what?
The most interesting RNS was the change of broker.
"Their unifying passion is for exciting growth companies and the team has an enviable track record of growing companies from small beginnings into substantial enterprises – companies such as Domino’s Pizza, Learning Technologies Group and Rightmove. This track record has continued at Dowgate, with notable successes including Franchise Brands, National World and S4 Capital."
So, they spin out Netacea, the division with the most growth potential in which we now have a free ride, and sell the remainder of the business for 1.7x book value. Solid dealmaking.
It’s true they’re not forcing us to invest. Once invested, it’s reasonable to ask - what are they doing?
That defence of comparison with the Aim All share Index looks complacent now. Time for them to come out of hibernation.
Do you not think money would be better spent ensuring we have a sustainable business going forward? We've not been given any evidence that we have a viable business without selling covid tests. Giving away money made from covid doesn't seem sensible to me as the income is unreliable though it's been generated for longer than expected. The logical conclusion of going down that route is winding the business down and distributing proceeds to investors post covid. As things stand you'd be paying a pound to get 50p back.
Up to 30/6/22 they'd sold 1100 devices for total revenue of $982k
= $893/device
Note these sales were made with a gross loss, ie. it cost more to make them than they received for selling them.
Well said ace. I do wonder if directors are deliberately driving the price down. Remember one of the stated reasons for the capital reduction, if approved next week, is that the company can buy back its shares. I wouldn't put it past them.
It's obvious that if you cough or sneeze into a mask the concentration of droplets of mucus containing virus particles in the air around you will be reduced, and the plume will travel less far, compared to not wearing a mask. It's not preventative but it's doing some good and certainly not causing any harm.
Laughing at people wearing masks marks you down as an idiot. It's a personal choice.