My analysis and intrinsic value of CHM March 2022

I hold shares in this company and have opted to buy the offering. With that said let's get started.

CHM is not profitable at the time of this HC message. It has made a profit of just over a million dollars in revenue and that was over a period of 3 years.
The research is ongoing and they are burning through cash at an alarming rate. Its cash burn rate climbed from 14% to 17% YoY. Personally, I'm not worried about this cash burn as the intellectual medical applications are high and worth the end results, to say the least. I read a book by Bill Bryson, The Body, where he talks about Chimera's revolutionary CarT cell therapy as a cancer cure for millionaires. I'm not sure where he was going with this statement. If you have read the book please leave me a comment as I would love to know what he is talking about? The company's market cap is AU$60m. Price to fair value for CHM is around the AU12cents a share.

TAKEAWAYS

• Runaway cash flow good for 12 months
• 1-year shareholder returns are at -47%
• Price to Book value is 3.47x
• Return vs Industry ABI (Aussie BioTech Industry)
• P/E -2.9
• CHM will not have any revenue for the 2023 period.
• CHM will remain unprofitable for the next 1 to 2 years
• Neg ROE -123% unprofitable (2022)
• ROA -73%
• ROCE -102% (2022)
• Growing shareholder dilution but not uncommon for this type of stock. The issue with this constant dilution is that the outstanding shares have been increased by 22%
• Jennifer Chow's compensation is AU$1.75m way too high for a company of this size. But she does the job of MD and CEO to her credit.
• Tenure is low also. most only have a 6 month period with the company.

POSITIVES

• If trials can be moved forward and show some results (FDA, TGA) with some emphasis on "off the shelf" products sooner than later.
• It has short term liabilities of AU$2m and Short Term Assets of AU$14m which looks very healthy for a company operating for less than 3 years.
• CHM is debt-free.
• Insider Buying has been great. Nothing but BUYS which is telling me these board members are as greedy as me. I would love to see Institutions carry a bigger load than 5.5% (15 to 20% would be great?)
• Individual insiders hold 32% of the pie. Wallflowers and little old ladies so far. Where are the Blackrocks, Vanguards and HSBC's?

As of this post, CHM has 400m shares outstanding which in my opinion is tiny compared to other companies in the same industry. Let's keep it that way. This information was calculated on a spreadsheet and software so please excuse the diphasic approach. As always please do your own research before you go off and play World of WarCraft or something.