The traders are having their party with this one at the moment, but its no fly-by-nighter. Its fundamentals will ensure that it will eventually be taken over by the long termers. Consider:
1. Excellent management - with the managing director and CFO both with extensive international experience in biotech companies
2. A strong non-executive chairman - leading barrister and ex-parliamentarian with extensive contacts in commerce, government, defence forces and police
3. Major shareholder is one of Australia's most successful businessmen
4. Extensive intellectual property with Dr Ming Sun - director and general manager of Sun Biomedical (maker of Oraline 4 and other diagnostics)
5. Products already in the market place
6. Flagship product (Oraline 4) has much greater sensitivity in the measurement of THC - a huge competitive advantage as cannabis is major illicit drug
7. Oraline4 likely to become first oral testing device with FDA approval (now seems extremerly likely following FDA approval to export to Mexico)
8. Huge potential markets - workplace testing, schools (as in Mexico), sport, and roadside testing down the track
9. US workplace testing market alone is valued at $1.3billion per annum. If HGR can get just 10% of that, will put a bomb under the share price. And then there's all the other potential markets!
This won't be under 10c for long. Could be 50c plus within a couple of years - if the markets unfold as anticipated.
Good luck to all
HGR
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The traders are having their party with this one at the moment,...
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