Good analysis. I listened to it too and agree the Chairman came across quite badly, like it was a pain having to answer all the questions. However the CEO did a great job as did the other board members.
I think the sell off is due to realisation that the financials will still take some time to improve and the ambiguity on how much they'll get reimbursed from the 22,000 tests they have done. And also the lack of clarity on their sales plan a part from 'we're expanding'.
On the positive side I did like how the chairman insisted they are going to focus on the US and SEA for now, that's a smart move. Why spread their resources too thinly on other markets.
I also think their competitive position in the market is strong which makes this all the more compelling long-term. I'm not too concerned about their profitability short-term. I'm more keen on them hammering home their market-leading position and growing sales. Also, it's a very high gross margin product so long-term profitability will be there.
I doubt ANZ would have bought in at 65c if they didn't see value also. In my mind that 65c is almost a floor for now, however if they take too long to convert sales/get $0 from the 22,000 it could slip a bit.
Price at posting:
71.0¢ Sentiment: Hold Disclosure: Held
