I can handle criticisms, happy to engage with a good argument - and I can change my mind. I've sold out of a few companies I hold after having issues highlighted to me and doing further work, but not PNV.
The issue with the negative views here is that they are driven mostly by share price movements, rather than the performance of the underlying business. And if I sold out of every company simply due to share price volatility, I would would be a far far poorer person today and missed out on many multi-baggers.
The second issue often raised is that the company missed its hopes to double revenue - which was stated well before the pandemic was a thing and resulted in cancellations to procedures and restrictions to access to hospitals. And despite going through the worst of the pandemic, the company 'only' managed to grow revenues by 50%. Usually top of the list of risks for a company at this stage is cash burn - and yet going through the worst pandemic.... not only did it grow revenues by 50%, it all without burning any cash, and while going through the period that demanded the most capital investment in building out more manufacturing capacity - which is now going to be all behind us.
So when I look at the business where it is now compared to 18 months ago, what I see is a bigger sales team, more distributors in more countries appointed, agreements sign with the biggest GPO's in the U.S that only became effective a few months ago, and greater access to hospitals. There also has not yet been anyone that has developed a better fully synthetic matrix.
So when you refer to 'alternative points of view', please - share your summary of what those are.
I have a personal list of 'red flags' which if emerge - will trigger me to review my holdings to reduce or sell out - and none of them have been tripped. The include factors discussed here and in my previous posts - unsustainable cash burn, emergence of a better product by competitors, surgeon reluctance to adopt, BTM being boxed in as a niche product for limited cases, a lack of validation by the surgical community, emergence of reported adverse events etc etc.
If you see any of these red flags being tripped, please let me know and I would gladly engage and discuss.
I also have a list of 'green flags' which I use as indicators of the health of the underlying business, and those are really bright. The body of reports on the successful use of BTM continues to grow - and even more impressive is the range of procedures it is used in. Surgeons remain excited and interested in using BTM - even while hospitals were shut, many tuned into webinars held by other surgeons to learn about BTM. Most importantly, surgeons that have used BTM have continued to use it and continued to increase their use of it in different types of procedures.
So please, if you have a good critical point about the company, please feel free to share it.
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