I had a few reservations/concerns wondering whether to sell half...

I had a few reservations/concerns wondering whether to sell half my holdings but after the AGM today I have decided to hold on. I thought it was a very good company update – honest and pragmatic with real opportunity(and likelihood) of substantial growth.

As I see it,
1. Worst case scenario is that Covid gets more rampant in the USA with new Govt introducing lockdowns and vacating hospital beds for Covid which would slow-down CMP business there however I think their growth in Europe and recovery in Asia will hedge such an event. In any case I expect any lockdown in USA would be temporary. The Country culture won’t tolerate lockdowns for long.

2. Best case scenario is there are no lockdowns in the USA and their sales continue to grow with the release of new unique products of which they are installing (secured contract). In addition, the growth in Europe and China/Japan is all positive so we should see substantial growth overall.

I originally invested in this Company due to strong fundamentals and I am pleased to say that I now see very good management that puts me at ease and comfortable to continue holding. I was intrigued that they have a culture of not announcing significant contract sales to the market and hold off until complete contract execution and update holders via semi-annual reports/ AGM’s.

Still curious about “Somfit (consumer application) product development progresses with COVID-19 multi-modal capability applications” ………would have liked an update but was distracted from the meeting and didn’t get to ask for some elaboration on that. That could also hedge any drop in sales in the USA if a lockdown is invoked.

Overall a very good meeting and update. I expect this will go to at least 60c short term and probably above 80c in the new year.

keen for alternate views