So much for my obvious lack of knowledge

OK, I’ll admit it. I’m not an especially good investor. There are plenty of bloggers out there who are far better than me. Having said that …

A year ago I made a note to myself to follow up on NIPT (Premaitha Health). Here’s the link: https://goo.gl/3Wx0jt . According to Stockopedia:

Premaitha Health PLC is engaged in molecular diagnostics business for research into, and the development and commercialization of gene analysis techniques for pre-natal screening and other clinical applications in the early detection, monitoring and treatment of disease.

I essentially called it a sell, on account of its low Stockopedia Stock Rank, its appearance on the Z-score shorting screen, high cash burn, and analyst downgrades. I said it was a story stock with further dilution on the cards.

At the time, the share price was 16.5p, and Tom Winnifrith gave it as a tip of the year. He told me that I “clearly did not look at the balance sheet”.

Someone on twitter said “you obviously don’t know much about the company nor the market nor the NHS”. He was right. I had only given cursory to the company. I also don’t know about the inner machinations of the NHS, other than the fact that it seems to be in crisis constantly.

Being told that I “obviously don’t know much” would, of course, prove to be prophetic, which is why I included it in my original post. The shares are down 52% to 7.88p, far short of Tom’s target price of 30p.

Late last year, the company announced a “transformative acquisition of Yourgene Bioscience”. Personally, I’m not a fan of this. I would rather see the company grow organically. The consideration was ~ £6.8m in shares plus $500k for a company generating annual sales of £2.0m.

Analysts are still predicting ongoing losses for the company, and it has a stock rank of 1. Avoid

So please, stay safe out there. The waters are full of sharks.

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About mcturra2000

Computer programmer living in Scotland.
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