This is a company making deal with Sonic. Medical tests take a long time to develop and then they are difficult to commercialise. But once finally in the market, they stay there for 20 years turning into massive high margin cash cows.
Sonic also operates in 8 countries and this deal is a precursor for the other countries.
We already have a distribution deal in the UK (not with Sonic) and PIQ announced that this is being expanded to more European countries.
Also, once you commercialise 1 test, the pipeline then starts to be given value as PIQ has proven they can commercialise. I predict in the medium term that the Endometriosis test will be a bigger value driver for the share price. Then Oesophageal Cancer amongst others.
This is going to be a huge winner in time. No more capital is required so the capital structure will remain tight.
PIQ is now an institutional grade stock with a limited float. Have a look at what Promedicus (PME) has done since it started to commercialise. At times it has traded up to 120x revenue. Sure it is slightly different but still very similar. In 2015 it was 90c and rose $65 in 7 years.
I expect a bit of volume in the stock in the next 3 to 4 days then it starts to tighten up again which will lead to some big gap ups when more news comes on other jurisdictions and other tests.
Well done to all the long time holders. The best days are still ahead of us if the finalisation of the Sonic deal in announced tomorrow!!
PIQ Price at posting:
90.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)