Nova Eye Medical (EYE) Discussion, page-1965

Definitely agree, I wouldn't say we are a blue-chip stock yet lol, but I definitely wouldn't say this is remotely close to high risk either, especially after the recent news. However, it certainly does feel like the market is pricing this stock as if it is a dud!

We have already seen how iTrack Advance performs in even the worst market conditions. When the LCD was looking almost certain to be implemented, other companies experienced significant reductions in order volumes, whilst EYE outperformed significantly, recording 65% growth over the period. If they could perform that strongly then, it is hard to see how they won't see spectacular long-term growth now that reimbursement fears are gone. Pretty easy to see that revenue will continue to grow very high very fast.

Profitability is still speculative I guess, but the trend is pretty clear. In H1FY23 they recorded a loss of -$6m. In H2FY23 that improved significantly to only -$2m. Not sure what it will be in H1FY24, but I am keen to see as it will most likely indicate whether or not we can expect to breakeven this financial year.

2RT is clearly very speculative, but it isn't risky (imo). Clearly, at only a 2x revenue multiple the market isn't even pricing in the high growth associated with iTrack Advance, and especially not the potential of 2RT and other R&D. Even if 2RT goes absolutely no where, at such a low valuation, iTrack Advance alone would be sufficient to carry the share price well over a dollar. We basically have a free option to benefit from any upside associated with 2RT, with none of the downside risk.