EMvision Research Notes, page-1276

I look forward every day to reading the EMV posts so thank you to all contributors. I feel I should add my 2 cents worth to be part of the community. This post turned out longer than I intended so sorry.

Milk, thank you for your forecast earnings. I see you have an earnings per share of over $6. At a conservative price earnings ratio of say 50 that gives us a forecast price of over $300. Very nice. In my view your 10% market capture may be ok in the very early years of commercialization but I expect a market penetration much greater than 10%. I say this because I have checked out the potential competitors and I think they are unworthy to be called competitors.

Medfield Diagnostic. This company first developed its contraption in 2017 but now seems to have accepted it does not work for stroke detection. Interestingly it even sent 2 machines to Australia to be tested at the Hunter Medical Research Institute in Newcastle. No results were published so we have to conclude it failed. The company is now testing its machine in London to see if it works for head injury.

EM Tensor. This company has been trying to raise money for about 4 years. It makes claims that in the relevant year it will carry out and publish research and seek FDA approval. But nothing happens and looks to me as this company is, at best, engaged in wishful thinking.

Micro X. The least I say about this company the better. It was not prepared to risk any of its shareholder funds on developing a stroke scanner but only risk the ASA grant money. This does not give confidence in its concept. What annoyed me was its claim to be the centrepiece of the ASA submission to the MFFT for funding. This was a misleading statement and my first principle of investing is never invest in a company that misleads its shareholders.

I asked Ron at the AGM when we would re-engage with FDA seeking Breakthrough status. He said not until we have obtained sufficient number of patients in the main clinical trails. So that is later in 2022. Something to look forward to. I, and I think the market, was disappointed we did not get Breakthrough status at our first attempt. But Rome was not built in a day.

I was also underwhelmed with the 50 patient data set. It was good with 98% accuracy but I was expecting a traffic light system, with bleeds showing code red and blockage showing code blue and doubtful code yellow. I do hope this type a system is developed for the main clinical trail and then we can expect 100% accuracy or very close to it.

The share price at the moment seems to be in the doldrums. Obviously Mr Market does not yet appreciate the potential of our company. Or Mr Market is not prepared to take the risk our machine will perform as expected. In my experience only about 1 in 20 pie in the sky companies are successful. I strongly believe we are 1 in 20. I can only add hold onto your hats and enjoy the ride.