AGH 2.33% 4.2¢ althea group holdings limited

Trying to scale a loss making business exacerbates the loss, page-20

  1. 755 Posts.
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    Hipho - lets stick to discussing the stock and not the poster please.

    I agree with @sidage that there are some major risks with the AGH business. Their major one being their excessive expenditure. They have previously talked about a salesforce of reps trying to get doctors to prescribe their products.

    They may have managed to source 5000 patients who have been prescribed their product but we (and I suspect AGH management too) have no idea what number of these patients are continuing on AGH products or simply churning to alternatives.

    Also one of the major concerns with their business is that they have enormous running costs especially as a function of the low revenue they have.

    Realistically, if they publish their Jan-March quarterly 4C with still a net loss on it, I think the market will not forgive them this time. It will almost suggest the probability of a CR is 100%.
 
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