fair value for consegna/ rhinomed ltd?

Great to see RBS Morgans starting to notice us and various instos and brokers :)

So what is "Fair Value" for Consegna/ Rhinomed?
Thought it might be an idea to [try] and have a discussion about this and what constitutes “fair value” for this company.

I would say that at the moment it is fairly difficult to anticipate what sort of share price value should be attributed to stock in CGP/ CGPOA or RNO/ RNOOA in the future because it is dependent on so many different factors. Factors such as how much the turbine is liked, how quickly we can advance the development of other products in our portfolio relating to sleep, wellbeing and drug delivery and how quickly we can “fast track” the commercialization of all these. And of course also once we know what the actual success is of these products commercially, Of which we cannot know for any of them yet!

If there are strong revenues from the turbine sales than this will not only be profit and revenues made by the company which investors will like, but some may argue more importantly, will largely assist the company in the fast tracking of the numerous areas that the company is envisaging to tap into. If the turbine is a big hit (and we are yet to determine if this is a case) then we could be fast tracking the other areas much quicker than we thought which of course is what I and many are hoping for. This then may or may not bring with it more company growth due to our “other” areas too!

I have long said that part of the reason why I like this company so much and have built a stake in it is that it Is a clever business model (imo) and we have good people in the drivers seat! Very unique products but more importantly we are going after the areas in the market which could be proven to be very highly profitable; where there is huge unmet demand for certain products (especially in snoring, appetite/ weight management). The areas where you may say has not been sufficiently met by unique technology yet. Potential for big profits and big growth, that is why I am here at the end of the day LOL.

- We know that snoring is a big problem with many people.
- We know that sleep apnea becomes a bigger problem the older you get and the more overweight you get (of which there is described as an ‘obesity epidemic in many countries such as USA and Australia)
- We know how popular yoga and pilates is in the USA and also the amount of people interested in appetite suppresents.
- We know of the amount of sports people and athletes who could use the turbine and the effect this would have on others wanting to try it not just through effective marketing but also word of mouth "what's that inside your nose?", etc.
- Migraine through drug delivery – even personally just the amount of people I know who experience very bad migraines is also large.

The company has already stated:
*That the proceeds of the sale of 75mil of it’s IMU holding (25m retained!) will be applied to bolster the working capital of the company as we progress the launch of the turbine.
*The company report cash position of 1.537 mil as at 1/10/13.

Now if the signs are there waiting for us of the demand and interest in the product(s) further money will role on in imo to support the story. The market liked the ISN story that much that at end of June in 2013 they were able to raise 38.571mil new shares at 35c per share to soph investors with “funds to support manufacture, supply, market AirSonea for product launch”. ISN market cap as said previously got taken to about $230 million based on it’s various asthma platforms primarily AsthmaSense and Airsonea. In their newsletter from back in Apr ’13 they stated: “together these devices will change the way asthma sufferers around the world can monitor and manage their conditions”. Now of course there are many asthma sufferers but I think many of our products could change the way you do things in many different areas and we have a large diverse range of areas we want to tackle which one could say also may minimize the level of risk with a long term investment here somewhat.

Airsonea seemed to be the real driver with ISN as It is interesting to note that on 12 April 2013 when ISN announced to the market that it had launched it’s latest smartphone asthma management application AsthmaSense Cloud (which helps medical experts track patient asthma data), their share price was only at a high of 8.3c per share! So we will wait and see what will be the big driver of CGP/ RNO but out of all the areas we aim to go into there is likely to be more than one imo if things go well..

ISN
5c-ish then
12 April 8.3c per share
3 May 2013 16.5c
21st May 38c
3rd July 51.5c
16 July 76c
24 Sep 88c,

As you can see, this particular growth story took TIME. And many of the great growth stories like this do take some time. MNW is an example of a story that didn’t take too long because they were in the right place at the right time. I would say we probably won’t grow as quickly as that, but those who had the patience to hold from 12 April to 24 Sep in ISN would have made a profit of 1000% for that investment in some 5 and a bit months! I suspect that CGP/ RNO will be a similar sort of growth story to companies such as: ISN, CAJ, NEA, MKB, whereby it is not a quick cash grab but rather a solid growth story with ups and downs over several months with the overall trend imo being UP.

This ‘essay’ is almost finished i swear LOL, with a quick summary:
*Sports – Turbine (About to roll out)
*Sleep – snoring and obstructive sleep apnea (very early stages with product design in progress for snoring/ sleep apnea – anticipated launch in 2014)
*Wellbeing – nasal congestion, appetite suppressant, yoga/ pilates (also very early stages with Fragrance trial 2014, roll out 2014)
*Drug Delivery – nasal medical delivery (also very early stages with tackling current drug delivery issues, rapid uptake into blood stream, potential for patent extensions, potential treatment for sinus diseases and allergies, first trial programme being ‘defined’ for Migraines)

Recently the company also pointed out that the Vibrovein technology which is based on significantly increasing the accuracy when putting a needle into the vein whilst reducing pain/ discomfort by the patient receiving it. They are also “creating a clear and compelling commercial proposition for this important asset. Shareholders can expect to see further news of this development work over the next six months”

Best of luck to all old and new shareholders, the only person I have not told about this company is Barrack Obama LOL