Excerpt from Livewire Markets, see below...great to read...

Excerpt from Livewire Markets, see below...great to read turnaround stories like this. I dont understand why people are fighting when one can read the fundamental themselves.




Ally Selby: Okay. Let's put all that theory into practice. Which stock do you think could be the ASX's next big growth story?
Michael Wayne: So the business that we like at the moment is a company called Polynovo (ASX: PNV). Polynovo has had moments of euphoria followed by moments of despair over the last couple of years. It's still well and truly off its all-time highs reached in 2020, but the business has improved considerably. This is a company that came out of the CSIRO.

Effectively, they've developed a product used to treat burn victims or people who are suffering from large wounds, for instance. It's a biodegradable mesh that allows the skin cells to regenerate themselves and then basically prepares the groundwork so that a skin graft can be done over the top. I know it's pretty gory stuff, but it's a very important technology.

They're really usurping the traditional forms of treatments, which often involved using animal byproducts or animal skins, like pig skins, for instance. This is a new technology. The chances of infection or something going wrong are diminished.

The business is growing revenues in the vicinity of 60%. They're really looking to bed down the US market where they've increased their sales team by 60 odd headcount.
So they're investing in building up the sales team to now go out and commercialise this procedure, spread the word, build the narrative if you like. But then down the track, they've got the opportunity to expand into places like India, and then also look for other alternative uses of this technology as well.

So it's a very interesting business. They have reached an inflexion point, which we like to see, where they've turned EBITDA positive after years of making losses, and revenue growth is accelerating. So when you're seeing revenue growth accelerate, it's often a very exciting story.
So that's one that we quite like at the moment, Polynovo.