Strong Buy - Incredible Value26 Oct 2020 12:14
I’ve been following and backing MWG and SKIN for sometime (now DeepVerge / DVRG). They’re among an elite group of AIM listed companies working to help solve the Covid 19 crisis. The main companies all have a lot in common, in that they’ve all been making recent losses but have seen their share prices rise significantly this year... though DVRG still remains well below the average in terms of Mcap, despite possibly having the best solution!
1. Novacyt
Mcap £843M
TO £13.08M
LOSS £6.56M
2. Avacta
Mcap £445M
TO £5.51M
LOSS £15.61M
3. Synairgen
Mcap £292M
TO £ N/A
LOSS £3.88M
4. Open Orphan
Mcap £176M
TO £3.84M
LOSS £6.54M
5. Omega Diagnostics
Mcap £175M
TO £9.82M
LOSS £6.83M
6. 4D Pharma
Mcap £175M
TO £.21M
LOSS £24M
7. DeepVerge
Mcap £37M
TO £.82M
LOSS £2.3M
On average the companies have a market cap of £306M verses DVRG £37M, average turnover of £4.75M which is not far off the forecasted TO for 2020 for DVRG. Average loss of 9.38M, over 4 times DVRGs.
This alone surly makes this an incredible buying opportunity? The company has so many exciting developments even without any Covid involvement. If they get through the level three lab testing (and it seems they should), they will have significant first mover advantage for a complete Covid 19 solution to help unlock the world and get all our lives back to normal.
The global market for testing based on just half the world being tested just once a week, is estimated to be a Trillion dollars, annually! There is no vaccine that will make this virus go away quickly, so testing is the key, and we will need good testing capability for evermore as we have seen the deviating effects a virus causes, even if a vaccine is developed.
It seems to be a case of either paying 30 to 40 something pence now, or possibly several pounds when the Microtox BT breathalyzer hits the market! This has to be one of the most exciting and undervalued companies I have ever seen and I’m very pleased to be a part of their exciting journey!