Originally Posted by
barney
If both ATM and PEB were earning revenues of $100m, the difference would be the vast gap in profit margin between the two. A couple of dollars on a bottle of milk versus several hundred dollars on a cxbladder test.
Rather than the dramatic rise in the shareprice over the last week, I thing I would have preferred a more gradual rise over a longer period, not that I'm unhappy. But the volitility can be a little nerve racking.
However, there is one thing to keep in mind. For those who have followed this company over a long period, the shareprice has always languished around 20c, give or take fluctuations of 10c either side. By a long period I'm talking over a decade. All during that time the company has gone about its business of researching and developing products to a point where they are only now just entering markets. Until this year, and in particular the last fortnight, virtually no value has been placed on the progress the company has made in the run up to commercialsation. It's only now that the market has realised the value that has been accruing over the last ten or more years and the shareprice has finally caught up.
It also seems that cxbladder has been accepted in the US a lot faster than may have been anticipated, even by the company itself. From only having opened the Hershey lab in March, and having sales people on the ground since July, they have made their first sales and signed two major deals, with more to come. If they manage to sign up Medicare amd medicaid, and I think they probably will, then we really will be away laughing.