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.
Mark Carter's blog 