Agree Moneyinmouth, In my view, the CSX trade was never going to...

Agree Moneyinmouth,

In my view, the CSX trade was never going to be a successful momentum-shift trade following their last announcement. The CSX story is just beginning and needs to be given an opportunity to grow and flourish. The Chairman, in the last management call indicated the current price doesn’t concern him. He stated that he is not interested in building a 500m MC company but rather a 5bn MC company. Both he and the team have the runs on the board with Resmed and Nanosonics. I am buying into a story here (proven tech, growing TAM, decent balance sheet), with a strong management team, and that will take time. Has the world changed as a result of the virus? WIll Workcover and related global insurance entities dictate minimum quality trade PPE. Most definitely

The COVID springboard for the stock, whilst creating near term uncertainty, is actually a good thing in my view - but the market is currently unaware of dependable financial forecasts due to this IPO springboard affect, the recent vaccine blockage to short-term orders, and future near-term growth. Also, it appears they are only going to report twice a year based the current market announcements to date. This doesn’t ease the current jitters.

All in all, this is a two-three year hold for me unless the fundamentals change (TAM’s for medical and trade, technology, competition, margins etc).

Following the full-year performance results, the market will shift 10-30% in either direction very quickly. Accumulating now, is taking a punt in my view. I am not adverse to taking a punt based on known information - but in CSX’s case the majority of the information to date is rhetoric. No hard numbers yet on sales, pipeline orders, inventory, margin shrinkage etc etc. I have accumulated enough for now - and will happily hold - and reassess further accumulation following the results in July/Aug.