It will be an interesting Friday this week. No doubt the...

It will be an interesting Friday this week. No doubt the valuation has to change from the IPO of $4.41 per share. So what has changed?

Below expectation drivers:
1. Quarterly volumes in FY21 did not maintain the pre-vaccine rollout volumes and growth expectations immediately post-IPO.
2. Arguably - COVID lockdowns hampered the high 'touch' sales required for a relatively new concept design / requirement / option.
3. Arguably - N95 mask inventory levels were increased considerably by many institutions and these needed to be consumed to manageable levels before a new concept like Cleanspace is trialed / rolled out.
4. Arguably - Opaque understanding of consumable parts/accessory spend per unit compared to initial expectations. This appeared to be driven by forward loading at the unit purchase.

This has now resulted in a:
Market Cap of circa 100m
NTM Total Enterprise Value / Revenues 1.58
NTM Total Enterprise Value / EBITDA 7.24

Positives drivers:
1. Vaccine roll-outs are stabilising from surge and normal spend programs should resume
2. Minimum PPE requirements for first responders and front-line workers being reviewed. Its a new world now
3. 100k units globally (and growing) increases the incremental consumable/parts revenue. Clarity on this will be provided
4. Increase marketing and sales should drive additional revenue both in the medical and industrial sphere. Positive information regarding July and August performance would be helpful
5. I don't expect a forecast due to the uncertainty but further clarity of a FY22 strategy, consumables/parts spend per unit, and opening sales channels will be welcomed by the market

In my view this little company, with ex-RESMED and Nanosonics management has a very well regarded product with a potential disruptive innovative design. At such a low EV - I picked up more today and have been accumulating. I am hopeful that the positive drivers from the 'Annual' will inflate market sentiment in the short term and that the 'below expectation drivers' are baked in. I am not concerned by the escrow situation as I believe those holders (like myself) understand the value of this little company.

Just my view. DYOR etc.