Don't consider selling before profitability, page-372

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bigkev1

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18/05/24

14:32

Post #: 73893361
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Originally posted by saltland: ↑

Since the update that revenue for Q1 is expected to be 36% lower than previous guidance (at midpoints - $15.2M/$11.15M), the share price has dropped 36%.

It could be argued that this is a 32% overreaction since FY24 guidance is expected to be 4% lower than the midpoint of previous guidance ($81.5M/$78.5M).

However, in the absence of more reassuring explanations on the Q1 revenue downgrade and their confidence around FY24 revenue expectations, and an the increasing number of other misses - a proportion of investors are now doubting future guidance and questioning their investment, hence the rerate.

I hope it turns out that we were too harsh, especially on dismissing FY24 revenue guidance, but history is suggesting otherwise. Unfortunately, we have to wait around a month before we get a clearer picture.

I agree that the Avita team are best suited for the VAC process due to their product knowledge and motivation, and they will establish working relationships along the way. As I previously posted, the number of VAC approvals are ahead of my expectations. Investors and JC should know from burns, it can be a lengthy process, sometimes taking years to get approval. If people think it could be just a RECELL issue, keep in mind that PolyNovo's BTM has taken over 2 years to get VAC approved in some accounts too.

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Hi all the dream https://www.pauseawards.com/professor-fiona-wood-the-pioneer-of-spray-on-skin-technique-recell/ Go Go Go ReCell Bi Kev

AVH Price at posting: $2.38 Sentiment: Buy Disclosure: Held
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