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Nosebleed valuation without info substance on 5G or tests potential hitting the share. It certainly cannot accelerate on its current weak fundamentals: PE over 100 & relatively small revenue growth last year. ( the future promise needs expanded upon. )Hope we get a great RNS on test volumes & another major ventilator contract.

What can we expect from the 1st qtr update in October ? SLP has already signalled production volumes will be down , exacerbated by Covid disruptions. However achieved pricing should be very strong given PGM recent price trend. How healthy will resulting profit & cash growth be ? Will currency depreciation vs £ sterling be a headwind or tailwind ?

Thanks for this . I had read & also reviewed recent annual reports. Simply Wall st , Vectorvest & Stockopedia all suggest BATM way overvalued. Of course they are backward looking. Hence my ask about the future : how many kits likely to be sold ? What is 5G developments likely to be worth. We’ve had little detail from CEO. I’m trying to work out why. Appreciated the detail you shared. With it current PE over 100 we need turbo charged future results.

The dramatic need in global tests will provide a strong tailwind. But does anyone know what BATM capacity. 2 key questions ; how many can their partner produce ( as I recall BATM doesn’t actually make them )?
What scale & How professional is their partner ? At the announcement of the partnership deal I looked at their partners website & it looked quite amateurish.
Any detailed knowledge to allay any concerns ?

I guess some investors are looking at a PE of 115 & asking themselves if BATM have enough growth prospects to justify it. Yes they will have Covid related kits & these will be valued but there appears a good probability of a vaccine within 12-18 months. I wish the CEO had shared some detail on forecast sales & margins. Also the recent 5G announcement & video was light on detail. Does anyone have any sense of what this business leg might be worth ? The 3rd leg of Cyber security seems to be ticking along but more mature.
The market needs more than ‘a nod & a wink ‘ to justify its punchy valuation. Personally I love the sectors BATM are competing in but the next few RNS will have to show tangible progress to get us up over current price range .

Simply wall st & Vector vest both consider SLP undervalued. Any crude fundamental or relative valuation backs this up.
Clearly it’s been Country & sector risk that’s held the share back from a climb to new highs.
Hopefully in the investor presentation the CE can alleviate these concerns. Basket pricing looking forward looks strong ; market volume appears to recovering & a depreciating rand contains local cost pressure. With a fabulous balance sheet & reducing share count due to recent buybacks I for one struggle to see why we won’t enjoy an even better share price .

No £ numbers ... and not even a name ! How can you value benefits ?

I hope we get a bit more substance than Zvi’s usual ‘ nod & a wink’. Projected test orders & margins would help.

2 fabulous tailwinds to allow GDP to rerate :
1.Gold price already up +35% in 2020 and currently on an upward trajectory.
2.Elimination of Kimpesa losses at very least eliminates value destroying activity.
What might these 2 factors contribute to pre tax profit growth ? Surely min 35-45% growth in fiscal 2020/21
Anywhere near that & the existing loan can also be comfortably paid off.
If these events come to pass a material share rerate should occur. Nice to see several directors buying in through July.
Any views ?

Surprised the share price has responded so weekly. On a share base of 168m , receiving proceeds & eliminating at least £500k pa of losses I would have anticipated a min +2p movement. I guess strong full year results presentation in August will need to be the catalyst.

Full year results will show the strong cash & profit improvements. Even better will be next years results. The strong gold price surge( with Goldman S forecasting further rises from $1900/Oz to 2300$/Oz , conversion back to an improving £:$ rate ... and the £profit cascade from improved revenue( >25% per Oz) off similar fixed & total operating costs will strengthen the case for a material share price rerate.

These must be buys not sells. You don’t have supply ( sells) exceed demand ( buys) & have the share price rise. Something weird going on & looks like someone is stake building. Delayed posting positioned as sells when price rising strongly. Hmmm

What are your valuation assumptions Sulkap ?

To quite McKinsey consulting trend/outlook summary : The healthcare response to COVID-19 will remain a priority for an anticipated 18 to 24 months, as countries implement phased relaxations and restrictions to suppress the virus, expand testing and treatment capacity, and find better therapies.
Not a time to sell BVC with this ( & other) tailwinds.

Take its 38% stake in Ador molecular biology JV BATMs original investment was $4million. An initial assessment of value was $ 17.2m . ( BATM has only booked a $3.2m gain so far-note share of Ador losses halve this as they move towards full commercial roll out. )
That was prior to the $14.5 m initial investment by new investors. Furthermore an additional $15.5m AT A VALUATION a third higher than Adors current enterprise value of $45m will be funded at end of 2020 by same new investors, subject to certain conditions. Will hospital machines that bench top analyse MRSA, meningitis & Covid be appealing to global health market ? That’s surely turbo charged cashflow power over next few years in just 1 BATM income stream .
Meantime ventilator order & home flu/cold/covid antibody kits can boost 20/21 revenue & profit. Exciting prospects in 5G too through partnership with ARM Holdings , leading chip designer to Intel & Arm.
Fund mgr Lombard Odier has continued to stake build in the past few weeks so clearly sees the potential across medical equipment ( strong growth near term),agri waste, network & cyber security longer term. Excellent markets to succeed in .

I guess the market is waking up to its outstanding product line up. The pivot to ventilators & antibody kits will turbo charge it’s already decent 2020 growth in bio medics, networks & cyber security & agri waste.
Long term R & D investment paying off in the short term with 31m € ventilator European government sale & home ‘Hatrick ‘kits ( Covid/cold/flu) in Q4. Then the promised big guns on 5G/Arm technology, medical equipment & poultry diseases control kick in. Strong cash on balance sheet ( & still sizeable tax allowances) will tempt more sophisticated investors to come on board.

Could BATM be a fabulous asymmetric to the Upside opportunity ?
PRIOR to Pandemic Simon T at Investor Chronicle was demonstrating that BATM was undervalued @60p. It had very solid medical equipment + cyber security business prospects in 2 growing markets. Then the pandemic hit & they are now showing that they have been working on 3 relevant products : ventilators , antibody ( you’ve had it ) & virus ( you’ve got it kits ). PLUS now planning 2nd wave home kits to test for common cold, flu or Corona. Think about how the world will feel when we get the sniffles in Winter. Will we want reassured on what we have ? DUH.
4 key points :
- total available market will be huge
- they claim they are already certified so fast start
- they have a strong balance sheet with the cash to make things happen quickly
- when demand exceeds supply usually good margins follow.
Here’s hoping

Should have added 60p tip by ST was BEFORE virus hit. Already revised cautiously up to 65p. What could it go to ?

Dr Fauci confirmed that he believes a 2nd wave is inevitable in USA. Germany fearful of another rise. Many parts of the world still locked down. The opportunities are very significant. And it’s not as if the cyber security or other medical device business isn’t interesting. Simon T in Investor chronicle had conservative sum of parts @60p. Strong possibility that will be revised upwards - as BATM demonstrate strong order pipeline. A bit more £€$ flesh on the bones please.

The Total Available Market for both tests will be huge. Consumers will pay good money to self verify whether they’ve had it. How many people tell you .. think I had it. Proof of that worth a premium !