Per my footnote I am also invested in a company called Biome (BIO) which has strong similarities to NGS
It was my BIO investment/company exposure that drew me to NGS - which i stumbled on whilst waiting for another company preso in ********* (NGS was on just prior I had logged in early to ensure I didn't miss the one I wanted to see) as post that preso I did a bit of research and they seemed to very similar in product just in different markets - BIO sell tailored pro biotics across a number of Australian pharmacy networks having launched via IPO a few years ago
Certainly not cross promoting rather I am using BIO as a comparable to NGS - BIO after a bumpy start post IPO and in difficult markets had a pretty good 2023 Annual report hitting $9 million in sales and are forecasting $2.5 million Q1 2024 - which hopefully bodes well for their ongoing growth this year.
NGS Q4 2023 was circa $1.1 million AUD - assume NGS only hit that number for each qtr in 2024 that is say $4.5 million (AUD). That is 50% of BIO turnover FY 23 turnover - BIO has a current MC of $27 million - so not unreasonable to say that NGS MC at $3 million is well less than 50% of BIO MC which would be circa $13.5 million or 4 - 5 times current MC
Assume NGS grows quickly via Walmart and other pathways now announced (and noting in the US they have 240 million US consumers) and hits $9 million (AUD) sales - well logically $3 million MC should be a distant memory and NGS should have a MC circa $25-$30 million consistent with a similar company like BIO being 8 - 10 times current MC
Time will tell but it seems to me that despite being very very similar - the market seems to be placing very different values on them - hence IMHO the arbitrage opportunity
NGS Price at posting:
1.4¢ Sentiment: Buy Disclosure: Held
