NIPT – Premaitha Health

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.

16.5p

Update 10-Jan-2016: @Vanvagabond tweeted me: “ you obviously don’t know much about the company nor the market nor the NHS.”

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About mcturra2000

Computer programmer living in Scotland.
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