I bought some more shares last week as I just don’t get why the share price is languishing at these levels.
The drop on the EUA rejection from the FDA was a massive overreaction but the share price has not recovered only drifting higher rather than return to the IPO levels.
LDX have increased their production capacity massively this year when the Florida facility was completed in April and came on stream in May. From a production capacity of 1.5m tests per month requiring a fair amount of manual assembly to 10m tests per month nearly all fully automated.
Cashflow should be getting a massive jump and by my back of the envelope calculations they should be well into cashflow positive territory this financial year even without the EUA approval.
The AGM on Thursday and quarterly report due this week should wake the market up for a re-rating.
