Patience. Believe this company is going places. It’s not if but when. The results of Study 6 give me high level of confidence RHY is on the right track. The market opportunities are huge for their product. Yes it will take time to commercialise and start getting a return. I understand the company is progressing CE Mark in the EU based on Study 6 results that have been released to market last month. Once Study 7 is completed (anticipated by end of 2021) company will implement US commercialisation....and other countries outside Europe presumably.
Figures from investor presentation Dec 2020 for people in various countries in the 50 to 74 target age group (have not included USA proposal to decrease screening age to 45)
Europe 231.2M people USA 93.6M people China 396 M people Japan 41.5M people Aust 6.73M people
Assuming 10% take up in all countries except China ( assume 2%) and profit $10 AUD per test ( this is my speculation) that equates to $453M PA.....Current shares outstanding is 202M ....assume dilution to 227M (again my speculation) equates to EPS of $1.99. Applying PE of 20 times (conservative) equates to share price of $39.80. Applying 90% discount puts current share value at $3.98.
Understand this is my speculation.... even applying PE 15 times earning with 90% discount puts share price at $2.98 and even if I’m out by 30% puts current share value at $2.08.
Anyway just my speculation (dyor)...but at current share price I reckon this stock is good buying. Patience.
RHY Price at posting:
$1.18 Sentiment: Buy Disclosure: Held
