NAN

3.52%

$2.74 nanosonics limited

have you come to any conclusions yet?

First 48 Last

Share
Profile

Follow
JayWin

3,540 Posts.

413

07/02/24

11:03

Post #: 72279610
Share

Originally posted by gragou02: ↑

At the AGM I got the impression that this was a business that was succeeding in spite of hospital budget cuts.I'm quite annoyed with myself over the position I'm in now because I didn't get the same impression as you did from the AGM. I thought the AGM comments at the time hinted strongly at a lack of ongoing momentum but decided to ignore my inclinations apart from lightening my holding slightly.
All of the AGM concerns about sales growth moving forward have merely cemented themselves into reality.

In my own little world of make believe I expected that revenue, for quite some years, would need to include about 3,000 new units per annum along with close to the same number of upgrade units per annum as those units sold in 2016, 2017 etc. gradually required replacement. This was necessary to justify the $4 to $5 sales price.
We are nowhere near those numbers currently.

It's not simply that the current numbers are a far way off that concerns me, but that the shortfall seems to be linked to tight hospital budgets.
Now, I'll admit that I've never worked in a hospital in any capacity, but I suspect that tight hospital budgets aren't exactly a new phenomenon. I'm sure they've been around for years and will continue to be around for many years to come.
So, I'm not sure how the momentum can be altered significantly and in a timely manner.

I suspect the problem, at least in part, is due to the cleansing equipment being a discretionary spend. That's not to suggest that hospitals don't care about cleanliness, but budget pressures may find administrators choosing to continue with the status quo (whatever that happens to be) rather than tie up capital budgets with a unit/product which offers a return across a seven-year period.

And for all this time, the clock is ticking. Patents that support NAN's unique position will start to run out in a few years' time, and cost competitiveness will rear its ugly head.
They sound like they're about to start discounting their price as of now in order to keep the sales momentum moving forward,

There is a small "other side to the coin" however.
These guys spend a lot of money on Research and Development and expense it all when a lot of growth companies, in their early stages, capitalize their
R and D.
Their profit for 2023 was $19m after expensing $29m on R and D. If they'd capitalized this amount the results would have looked a lot different in the same way as they might when CORIS is complete.

My sentiment is HOLD because I'm still thinking.

Expand

have you come to any conclusions yet?

NAN Price at posting: $2.99 Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

There are more pages in this discussion • 11 more messages in this thread...

First 48 Last

Add NAN (ASX) to my watchlist

(20min delay)
Last $2.74		Change -0.100(3.52%)		Mkt cap ! $830.1M

Open	High	Low	Value	Volume
$2.83	$2.85	$2.74	$1.384M	500.3K

Buyers (Bids)

No.	Vol.	Price($)
3	9000	$2.73

Sellers (Offers)

Price($)	Vol.	No.
$2.75	3636	1

View Market Depth

No.	Vol.	Price($)
3	9000	2.730
3	10275	2.720
5	10019	2.710
12	22390	2.700
5	3901	2.690

Price($)	Vol.	No.
2.750	3636	1
2.760	1029	1
2.770	1029	1
2.780	5275	2
2.790	5275	2

Last trade - 16.10pm 03/05/2024 (20 minute delay)


Last $2.75		Change -0.100 ( 3.55 %)
Open	High	Low	Volume
$2.84	$2.85	$2.74	170141
Last updated 15.59pm 03/05/2024 ?

NAN (ASX) Chart

have you come to any conclusions yet?

Featured News

Provident Aurum's off-market bid sends Sihayo shares soaring

Dancing to that same 70s tune, China, and why I'm backing gold

Carnarvon revs up for revised Dorado Development

Macquarie profits fall 32% on 'market volatility' and low-achieving 'green investments'

Car EV-olution accelerates Oz into pole position

Infini Resources gearing up for UAV geophys survey over Portland Creek

BPH Energy renews NT Bonaparte Basin permit

Lithium Universe ends the quarter charged up for Quebec Refinery roll-out

Why Princeton Professor rates BlinkLab's autism & ADHD screening app

Patagonia shares rise above 20% on lithium grades at maiden well in Argentina

Buyers (Bids)

Sellers (Offers)

Featured News

have you come to any conclusions yet?

Featured News

Top Stories

Provident Aurum's off-market bid sends Sihayo shares soaring

Dancing to that same 70s tune, China, and why I'm backing gold

Carnarvon revs up for revised Dorado Development

Macquarie profits fall 32% on 'market volatility' and low-achieving 'green investments'

Car EV-olution accelerates Oz into pole position

Infini Resources gearing up for UAV geophys survey over Portland Creek

BPH Energy renews NT Bonaparte Basin permit

Lithium Universe ends the quarter charged up for Quebec Refinery roll-out

Why Princeton Professor rates BlinkLab's autism & ADHD screening app

Patagonia shares rise above 20% on lithium grades at maiden well in Argentina

Buyers (Bids)

Sellers (Offers)

Featured News