It will take a lot more than these kind of announcements to move the share price significantly. As we've seen in the past week – after OSX reported its quarterly financials that showed good year-on-year increases in sales and revenue – there's not much reason why the share price should climb. With about 120 million shares on offer, and around $1 million in annual revenue at the moment, you could even say the shares are overpriced.
I think a lot of OSX's relatively high share price now is based on hope that it will deliver increasingly good results as the products enter new markets and – most importantly – are taken up by doctors. There is reason for hope, but the results themselves don't indicate a great uptake.
This is a concern for me, because Osteopore has been around for many years, its products have been used in over 40,000 operations with good results and reviews, and it has certification to sell and a presence in major markets such as USA, Europe several Asian countries, and recently Australia. Those factors alone – plus the facts that its products are less expensive, produce fewer patient problems and can be tailored to each specific patient's needs, should translate into big sales. Sure, OSX has only recently taken on sales representation on the ground in USA and Australia, but I thought word-of-mouth about a better product would be enough to translate into much bigger sales figures.
I guess it's a case of be patient and hope. I suppose we all bought in on the hope of what is a remarkable product with a great potential. I bought in with a two-year horizon, but thought the share price would be way north of what it is now after a year.
OSX Price at posting:
55.0¢ Sentiment: Hold Disclosure: Held
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