There are 88 listed companies in the BIOTECH segment on the ASX, 42 of them made no revenues last quarter. 24 made revenues of greater than $200k and only 13 made revenues >$1M.
Of those 24 in the >$200k bucket , OSX is one. 17 of those have 4 or less quarters cash left at current burn rate. Which leaves 8 companies remaining, out of those 8, OSX has the lowest enterprise value.
So from that perspective, I see OSX as undervalued.. however If I am brutality honest, I think Candid was right - what I have overlooked is the 39M shares which will hit the market on the 23rd. While I disagree with Candid that management and senior exec will sell on market, the dilution of these shares hitting the register will make it very difficult for those that bought above 50c to multibag in the near term.
A .60 target would value the company at $93M. This would require a pretty significant increase in revenues. Now I do quite like the business model here - very high margins and revenue growth is looking good. CF+ is pretty easily achievable at the current trajectory & current cash balance (7M) is not bad given the net outflow is ~$700k per quarter.
Anyone wanting to get in, sub 30 would be good buying but for those that bought > 50c I think it may be a long road ahead to break even. My lesson here is always consider the total SOI and don't overlook escrowed shares. Set a stop loss and walk away if it hits. My average is 53c and I contemplating taking a loss on this one to offset gains made elsewhere.
Anyway, just some rambling on a Friday evening - look forward to hearing other opinions.
OSX Price at posting:
31.0¢ Sentiment: Hold Disclosure: Held
