Hi Phantom,I think PNV and the market would benefit from more...

Hi Phantom,

I think PNV and the market would benefit from more consistent reporting. This helps with price discovery and removes some of the vacuum of information that shorters can take advantage of.

Maybe they should provide quarterly trading updates rather than 6 monthly? Provide AU, US and ROW sales $$ for each period - consistently, not just picking one region or month etc and changing it the next time.

In fairness PNV have always said that sales are lumpy and unpredictable but then at the same time they appear to do everything they can to jump around disclosing the quieter periods and instead pick out data that appears impressive.

I would expect sales to improve at a better growth rate over the next 12 months than the last 12 months. Management have not provided any guidance around this at this stage, maybe they will be in a position to when providing FY21 annual report at end of Aug?

If you are expecting $52mil rev for H1FY22 and $110mil for H2FY22 I think you are way off. I think PNV will have done well to book $50mil rev for FY22 in total and just become profitable.

I don't hate PNV. I think it has a great product and possibly other future great products. I just am iffy on some governance/reporting and I think it is overvalued. It's easy for the SP of a stock like PNV to run. Biotech, fast growing rev, high margin rev, wealthy chairman buying on market etc. this obviously resulted in the SP running hard to lofty values with many thinking Covid was not going to have a big impact and thinking 100% YoY growth was going to continue. Well it hasn't and when priced for perfection and you don't deliver and get a bit cute with your reporting - you get hammered and you attract the attention of shorters, especially now in the ASX200 so shorters have access to more borrow from index tracking funds.

It's clear their selling to new hospitals has been slower than expected. Is it all due to Covid or some other reason or combination of the both? We will find out Id imagine over the next 12 months.

If the company has returned to rapid growth I would expect them to do their record month update thing reporting $4m and $5m months in coming months. That would change my valuation.