NIPT is engaged in molecular diagnostics.
It has never made a profit, has a stock rank of 4, and it is on Stockopedia’s Z-score shorting screen. I would have thought it was a short if anything, but Tom Winnifrith has rated it a “buy” on 3 Jan 2016 (http://is.gd/eePhdF), with a target of 30p.
I tweeted the view that there would be dilution for shareholders. I was worried about cash burn. Tom responded “clearly did not look at balance sheet”. I noticed that they raised £7m in 13 m/e 31.3.2015. On 2.7.2015 they had a placing of £8m (http://is.gd/OU3SNw).
On 14.12.2015 the company announced an investment from Thermo Fisher Scientific (http://is.gd/IjnV3g) for £5m by way of secured loan. 20.3m warrants have also been issued to Thermo, which is not quite 10% of the shares currently in issue (228m).
Analysts have been downgrading forecasts over the last month.
I say it is a story stock with further dilution/placings on the cards. Tom Winnifrith gives it as a share tip of the year. Tom has a much greater reputation than me, BTW.
We can’t both be right.
Let’s see in a year’s time.