you are dreaming if you think they’ll have $30m in the bank at...

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10/08/23

11:58

Post #: 69266777
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Originally posted by prazzzz: ↑

Did a quick maths to see current situation. Based on the below, you are looking at EV to revenue multiple of less than 2 with revenue still growing at a healthy 30%. I'm guessing a net cash position of $30m at the end of June. That should be plenty for next couple of years presuming they won't invest their own money to complete Phase 3 trial and await a partner or other funding opportunities. This would allow them to generate NPAT by the time Phase 3 really kicks in.

This doesn't take into consideration recent $1.5 grant and any tax breaks. No matter which way you look it, the company looks incredibly cheap. I think the drag on the share price is because there is literally zero interest at the moment and these opportunities such as USA has been spoken about for a long time since 2018 and we still have not been through trials 4 years later. To be totally fair, 2 of those 4 years have been lost to COVID and USA regulatory matters do take time. They just need to be done and over with and the upside is potentially asymmetric.

DYO research.

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you are dreaming if you think they’ll have $30m in the bank at 30 June!! Will be considerably lower even with a bit of balance sheet finessing that companies often undertake at a key reporting date!

They need significant sales wins, especially in Europe to convince the market they can return to profitability!!

MVP Price at posting: 92.0¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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