Several weeks ago one of the HC posters mentioned a stock called TLX, a pharmaceutical company. He/she said, like WBT, it was one of the best performers on the ASX this year and, even better than WBT (in their opinion) it had the potential to go through the roof.
So I started watching TLX. WBT and TLX were both around $7 at that time.
I know it's perilous to compare one company to another especially in different industries, but there are a few similarities between WBT and TLX - great product, few or no competitors, great management, lots of R&D getting done, products about to hit market, and much upside in terms of future revenue.
TLX has just started earning revenue and posting profits. $100m this Q and $100m last quarter.
Why am I saying this? Again, no real logic comparing one company to another but here goes: TLX's share price rose, like WBT, on the "expectation" of future revenue. As TLX got closer to selling their product, the SP rose in anticipation from $2 to $6 ish. Then when the revenue finally landed, it broke through to $10 and is still rising. See TLX chart below.
All IMO - several HC posters have said WBT share price might already have factored in the potential revenue but I believe it has not. Even when we hit $9 with no revenue, many said that the customer signing announcements are already factored into the price. IMO, once qualification is announced, and customer deals are signed, revenue begins to flow and the share price will break through all previous price ranges.
In interest of full disclosure, I bought TLS shares at $7. When they announced their second $100m profit quarter a few weeks ago I sold for $8.80. I wish I didn't. TLX share price rose because of the quarterly result. Since the quarterly, it's kept going up from $8.80 to $10.70. I bought back yesterday for $10.45 and this time I won't be selling any time soon.........just like my WBT holding.... hold onto those share for dear life.
To the HC poster that told us about TLX.......thanks........and sorry if I have misrepresented anything you said or butchered the TLX story. GLTAH
(20min delay)