I can think of numerous examples over the years whether it be mining stocks or healthcare stocks where the big move was made before any form of earnings from production or sales took place.
FMG is the biggest example, when it hit its highs in 2008 of $13 or ($130 pre split) it had only just begun exporting iron ore. Yet the big move up was in anticipation of great earnings and big production.
SIR is another more recent example, they ran up to a $1.3b market cap with no earnings in sight. Didnt stop the market buying it up.
A few years ago PRR ran up from under 1c to 35c ($360m m/c) on excitement with their ovarian cancer drug.
What im getting at is the market loves a big story and people love to dream.
ADO have a unique product which could revolutionise the healthcare industry. I think the market is re rating ado not on what there sales will be next qtr but what their sales could possibly be in the years ahead.
After all the market is forward looking is it not?
DYOR
where to from here, page-39
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