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Premaitha – Share Options award: Reiterate buy stance

By Tom Winnifrith & Steve Moore | Friday 3 October 2014


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.


It sticks in the craw when management award themselves share options at 10p when the share price is 17p. But that is what Premaitha (NIPT) announced yesterday. However

a)      There are some performance criteria attaching to most of them. This company actually has to be generating meaningful earnings for them to vest. If that happens the shares should be a lot higher.

b)      These were announced in the reversal document. Okay we missed that part of the document but that was not Premaitha’s fault so it is not new news. 

Premaitha presented at the ShareProphets seminar on Monday and CEO Stephen Little was very impressive. We expect a good number of RNS statements before Christmas to validate the commerciality of its technology and that long awaited Panmure note is on the way. The Seminar Presentation will be online within a few days.

We tipped this at a 15p offer in June (when this was still called Vialogy)on our Nifty Fifty website – it is now 17-17.75p. Our target back in June was 30p – that remains our target. It has taken longer than expected for this to catch the imagination and enthusiasm of investors but having tanked back to 11p the re-rating is underway. At anything up to 20p the shares remain a Nifty Fifty buy.

Tom Winnifrith has just published his new e-book, The 49 Golden Rules of Making Money from oil, gas and mining shares. You can buy it on Amazon for £6.25 or you can order a FREE copy HERE

This article first appeared on the Nifty Fifty website. Since the launch of the Nifty Fifty website the average gain per tip on an offer to bid basis with dividends reinvested has been 19% with an average holding period of less than 10 months.  – to sign up for immediate access NOW to the full archive and to the next share tips from Tom Winnifrith and Steve Moore go HERE

 


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More on NIPT


Comments

3 comments

  1. This company has been boasting of its ‘game changing’ technology for several years. It is always going to be in the next few months that big things are going to be announced…..

    You seem to think that things have totally changed since the days of Vialogy?

  2. CHI

    Old tech was IMHO a joke, the RNS’s were lies. This was a shell. Now you have a new board of winners and a new technology, 100% different. Wait till you see the vid

    T

  3. I have been to the Premaitha website, and I find that website little unhelpful. Now, I am sure you have much more information than I have Tom and Steve. But I do wonder, how can you be so sure this is going to have a good shot at success? It is quite easy to impress outsiders with medical tech by cherry picking information.

    For example, I have only tracked down 2 papers related to Down screening from the co-inventor and lead scientist Dr. Crea: one of which is a review and both are published in not very impressive journals. These papers also date from 2007 and 2008, not particularly new. I would expect recent publications in high impact journals if this was revolutionary tech. For the 2nd lead scientist, Dr. Shelmerdine, I cannot find any relevant paper.

    Personally, I do not know too much about marketing approval processes for screening tests and I am sure that Stephen Little spoke about this. Marketing approval processes can be very time consuming, and are obviously in no way guaranteed.

    What about competitors? I actually found this highly cited paper about pretty much the same test: Genet Med 2012:14(3):296–305. The authors are froma company called “Sequenom”. This type of recent highly cited paper is actually what I expected from Premaitha.

    I also found the following statement in a recent paper: “Recently, DNA sequencing methods have been introduced on free DNA in maternal plasma, yielding a high screening performance. These methods are expensive and there is a test failure rate. We determined the screening performance of merging the Integrated test with the newer DNA techniques in a protocol that substantially reduces the cost compared with universal DNA testing and still achieves high screening performance with no test failures” Source: PLoS One. 2013;8(3):e58732

    Some statements are also misleading. For example: “Compared to traditional methods such as the combined test the IONA® test has both a higher detection rate and a lower false positive rate, leading to improved confidence in the screening result for both pregnant women and their doctors.” What about non-traditional tests? Like Sequenom’s test?


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