Ann: Nanosonics Business Update, page-20

ScoPo’s Powerplays – Time to trim positions on rallying Nanosonics

Heavily shorted Nanosonics (ASX:NAN) is Power’s stock of the week having come back from its lows in mid-June and going past Morgans’ 12-month price target of $4.86.

“It’s almost up 80% in six weeks,” Power said.

Nanosonics has developed and commercialised the trophon EPR device, a unique automated disinfection technology, which was the first major innovation in disinfection for ultrasound probes in more than 20 years.

The company has transitioned to a direct sales model in North America this year and is due to deliver its full year results on August 23, which Power thinks will be solid enough.

“It ran through our price target of $4.86 so leading into the result we think it’s an opportunity for investors to trim positions.”

“Nanosonics is quite highly shorted and one of the most shorted on the ASX being a high growth company and they have had a couple of hiccups in terms of perceptions of that growth which has clipped the company’s wings over recent times.

“We are looking for confirmation that growth is back on track which we are confident on but think it’s well and truly factored into the current share price.”