By Steve Moore & Tom Winnifrith | Sunday 30 April 2017
Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Concepta (CPT) has been a slow burner but we are well ahead on this share tip with the shares now at 16.6p-17p.Last autumn that it was about to sell its MyLotus kits in China and since then it has appointed a country manager and huffed and puffed but there are no sign of those sales. But you won't need to wait long. There are fireworks coming soon.
The results that came out a week or so ago contained no shocks. Sales nil. The company raised a net £3.4 million in July with the RTO and ended the year with net cash of £2.7 million and net current assets a tad higher despite investing in a new factory in the post industrial wastelands of Doncaster and in the infrastructure for China launch. So there is no cash crisis. But what about sales?
We are told that with EU approvals in MyLotus can be launched in the UK and throughout the Evil Empire in H2. Fine but what about China? That was going to be the first launch and Concepta says that in the PRC it has a manufacturing agreement signed with a leading Chinese manufacturer Shijiazhuang Huanzhong Biotech Limited to assemble and package myLotus.
myLotus is the only known home platform to offer both qualitative and quantitative results in the women's infertility space - the potential market is $600 million a year.
At 17p the company is capitalised at just £19 million. If sales come through in any volume then on a high gross margin the bottom line impact will be huge and the shares will utterly rocket.
So the question is what about China? When will we see the first sales. Our sources say that news is imminent, within weeks. That would see the shares roof it. So although the results statement is about as exciting as a rainy day in er....Doncaster the fireworks are not that far away.
On this website our stance is to buy at up to 17p with a target of 28p to sell. This may be the last chance to get on board.
This article first appeared on the Nifty Fifty website which Tom Winnifrith runs with Steve Moore & Lucian Miers. To access the website ahead of the next share tips from Tom & Steve and more from Lucian next week click HERE
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