Have been watching this story develop for the better part of 8 years. They have had a lot of the typical small company fits and starts with development of new products, manufacturing yield, etc etc etc. Management has been methodical in moving the company forward and I would characterize them as very realistic. After all that time, it finally seems as though they have reached the inflection point and it is a compelling investment opportunity. Product breadth has improved, addressable market expanded, manufacturing and regulatory hurdles are behind them, gross margins are rising rapidly with absorption of higher volumes, sales execution is steadily improving, research and development pipeline is full, market is underpenetrated and adoption rising. Also, their business model is annuity-like, so revenue visibility is strong and as revenue growth inflects and gross margins expand the current valuation of this company at roughly 3x '20 sales is going to meaningfully expand. Very reasonable to see double-digit price on this over next few months and with more fundamental carry through new all time highs over the next year.
評論:
Stock has been hit hard with the rest of small cap, relatively illiquid life sciences, but fundamental inflection in adoption of ePlex and resulting revenue growth acceleration remains in place. Expect this to act well heading into and out of their 3Q earnings report. Use weakness to buy.