Hi Karcus, Yes I own Volpara however it’s only a relatively small position size of 2.8%.
There is a lot to like about the company and the market opportunity. I’m a fan of software companies because of their reoccurring revenue and operating leverage. Also breast cancer is something I’d be happy to see addressed more effectively.
The recent MRS acquisition with what looks like a good suite of products is complementary and greatly expands the size of the market and also ramps up market penetration.
We are only at the beginning of the Volpara story and it has a globally relevant solution on offer. Near term drivers that could propel interest and I’m taking interest in include the US FDA recommending mandatory density reporting and the DENSE trial reporting favourable results of public screening.
Volpara remains a small position in my portfolio because I’m cognisant of a number of risks. As as with any technology business there is the risk someone develops a superior solution and the medical field is outside my circle of competence. The MKS acquisition also poses integration risk. The failure of the FDA or DENSE trial supporting density screening while not fatal would slow market adoption.
The shares have looked expensive the last 18 months I’ve followed the company but I’ve purchased with an eye on the large global opportunity rather than near-term value. The plan is with time my knowledge of the market and confidence in the company grows which will allow me to purchase more shares should that be appropriate.
You are right to point out the opportunity that both Asia and Europe offer however I wonder if it’s not best that the company focuses most of its resources at executing within the US market for now. Particularly with the US momentum offered by the MKS suite.
I remain excited by the potential in front of Volpara and look forward to watching the story unfold.
VHT Price at posting:
$1.53 Sentiment: Hold Disclosure: Held
