Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.
This 5.75p offer share tip has not covered us in glory...yet. Shares in Collagen (COS) are now 5.375p despite a decent trading update two months ago and now further news.
The latest development is that the company has secured a provisional patent related to its development programme for a novel Bone Graft Substitute that addresses approximately 30% of a $1.7 billion orthopaedic market for Bone Graft Substitutes in the United States.
Jamal Rushdy, CEO of Collagen Solutions, said: "We are encouraged by our Bone Graft Substitute product development work thus far, and this provisional patent application is a step towards realising the commercial potential of this project."
In other words it is jam tomorrow, albeit potentially very big amounts of jam. But we cannot really blame investors for ignoring this news pretty much altogether. However, hard numbers will, we think, get folks thinking the right way. Following the upbeat year-end trading statement on 25 April, we are told that FY numbers for the year to March 31 will be out on 11 July.
Those numbers will be good (sales up 26%) but we were told back in April that a lot of deals were signed towards the tail of the year so will not impact materially until THIS year's numbers. We expect more detail on that with the results in four weeks and this to help drive a big re-rate. The stance, at up to 6p, remains BUY.
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