Could this ASX stock become the next Pfizer? A look at AFT Pharmaceuticals, page-3

Could this ASX stock become the next Pfizer? A look at AFT Pharmaceuticals

Jonathon Davidson

The Market Online, Australia

I just thought I'd do a quick note in the hope that the AFT BoD are looking at HC to see if their latest HC video marketing is prompting any comments here.

Firstly I think it is a great initiative as for me the biggest problem with AFT is the lack of awareness with investors (yes I am one and have been for years). AFT tends to fly under the radar and successes are not promoted by media or any brokers/instos. Even if AFT comes out with a big announcement, i.e. something like FDA approval of Maxigesic IV in the USA or a big licensing deal in China there is very little press coverage or promotion which after all is IMO worth shouting about. This effect of this is very low turnover of shares and has had the knock on effect of bringing the SP down to a very sad multi year low. You just need to look at the number of comments here on HC, basically next to none!! I hasten to add that IMO this is not a reflection of the value of the company or the potential future SP but is what Mr market values the company at for now. I would also mention here that the low free float of shares probably doesn't help, so maybe if Dr Atkinson could maybe release a few more of his shares into the open market this may help get some bigger players interested? How do we get more liquidity?

A HUGE positive is that the company is profitable and self funded and therefore does not need to raise capital for research......GREAT. So no CRs and NO dilution of shares. But IMO investors do need a Medium to longer term investment horizon as dividends are currently very low so the biggest short term gain will only come if there is SP growth. Most profits seem to be currently recycled into research projects and IP/company acquisitions. This is great long term value creation but for short term investors (aka turnover) it does not appeal. Most seem to be just buying and holding for the day that either dividends, a buyout, a blockbuster licensing deal or something out of left field really gets Mr market interested.

So, basically my take on AFT is that it is a fantastic medium to long term investment. The SP is currently in the toilet so could be a great entry point but the market depth is hardly anything so we may need a bigger share of the company on the open market for this to happen. More media promotion is essential to get the good news out there and to help people understand how investing in AFT now will pay off in the future. Unfortunately although the intrinsic value of the company has gone up leaps and bounds in previous years, the SP has done the opposite. They are winning in product market share, gaining IP, profits are up, revenue is up, product numbers are booming and expansion into other territories seems unstoppable! BUT the share price is less than it was in 2016. One day Mr market may notice this little gem, but hey, what do I know.

Note: All this is just my opinion, not in any way advice.