30th June 2021 Share Price Prediction, page-172

On revenues the share price (market cap) is way above where it "should" be.

But of course speculative stocks are just that because they require investors to speculate what future revenues might be - and then to decide how much of a premium needs to be added in when deciding what price you are willing to pay now to get that bigger revenue in the future.

Some factors that contribute to the premium for Polynovo are

• a massive addressable market
• multiple markets for growth
• multiple products for growth
• a moat based on margins, price, and quality of product

Up until entering the ASX200 the "premium" that was being paid was relatively high. It was largely based on retail investors thoughts of blue sky potential.

Since entering the ASX200 the "premium" has been influenced more by the judgements of bigger institutions - those whose risk levels will never be those of retail investors.

And so we have had this period of transition - or "waiting" - for the underlying revenues to grow to underpin a "premium" judged by the market at whole.

In my view this catch up period will only happen once. As soon as the underlying revenues and/or the rate of growth exceed the current values, then PNV will be on the move again - and its difficult to foresee where it might stop.

Personally, I foresee a day when PNV will trade at $100 per share. I've bought quite a few PNV into my children's trust for that day.

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