I have been following Anteo since 2010 Mix&Go is a great product the benefits are quite substantial with attachment, sensitivity and antibodies. However there is one major issue with Mix&Go and diagnostic tests, the profit margins! They are just so tight, due to 2 factors.
1. Cost to manufacturer
2. Cost to apply
The diagnostic testing area is where the money is but it's a very tight industry, the reason IMO there has been no announcement on a deal is they can't agree on a figure that suits Anteo. I've heard some people state that Mix&Go would make Anteo profitable in the region of $20 million a year. That combined with a PE of 20 would, would push it to a market cap of $400Mil with a SP of around 47c+. Highly unlikely, I find those statements ludicrous and far fetched. Mix&Go technology is certainly not revolutionary nor cheap. The cost of Mix&Go in application and manufacturing is to high, the latest analyst reports I've read are stating Anteo would be profitable in the order of around $2-$3Mil a year. Give it a PE of 20, the market cap is only max $60M and a SP of around 7c (that's being generous).
IMO that Anteo won't even achieve those earnings due to high operating costs, my valuation is earnings of $2M a year and a market cap of $50M and a SP of 6c. Anteo has a crazy high market cap and no earnings, the company has been IMO pumped, not with any malice. I think people sometimes fall in love and get caught up with the story like it's the next big thing. The balance sheet doesn't lie, and future earnings? Well it's anyone's guess I think ADO owes it to its shareholders to release an update regarding this matter, there is to much hype around it. People stating that there will be 4 deals signed by end of year? How much revenue will they bring? Not a lot and hence the delays.
Someone once told me to buy PDN as it bottomed at $1.2, surely it can't go lower, then at 90c they said BUY again! It's a bargain, same at 70c, then 50c, then 40c, so how low can a share go? Has ADO bottomed? If not? Then how low? I stick to the facts and never get caught in the hype, today as I'm writing this I value the company at $15m market cap, why? Because Anteo doesn't make money, it's that simple. What is there intellectual property worth? It's an illiquid asset. Can this company turn a profit? Yes, probably. How much? Who knows! But nowhere near those reported hyped sums.
Again as I stated above, this is all the company is worth IMO "My valuation is earnings of $2M a year and a market cap of $50M and a SP of 6c." that's being a realist Anteo has a history of burning money not earning money PS - I am not a down ramper, quite the opposite. I actually do believe in Anteo as a company and it will be a successful company. It's just over inflated, all my findings are based on data and not hype. Anteo will be a successful ASX biotech small to medium cap company, but that's it and their limitations. To be a big player you need a huge revenue stream and profits,Anteo is not there and doesn't seem to be on it's way.
ANTEO HAS NO EARNINGS! COMPANIES WITH NO EARNINGS AND ILLIQUID ASSETS DONT (SHOULDNT) HAVE A MARKET CAP IN THE 100s OF MILLIONS. ITS REALLY THAT SIMPLE. ANTEO IS OVERVALUED DYOR
Expand
