Sourcebio Share Discussion Threads

[boonboon] 28/9/2021 07:14

So looks like there will be a hit from changing travel rules but in the third quarter they have done 50% more tests than in the whole of the first half so I do see value at these prices.

[bpc10] 25/9/2021 07:59

This share has performed like a dog this year.....

[smithless] 24/9/2021 10:38

Thanks for this. Bit of a heads up for next Tuesday

[tomps2] 24/9/2021 08:13

Christopher Mills Sourcebio International (SBI) at 12:45 in the latest Interview with PIWORLD

Watch the video here:

Or listen to the podcast here:

[riddlerone] 23/9/2021 10:56

When you add in a strong Net Assets from the balance sheet makes you wonder if it ends up the other way round and they get acquired by a larger competitor.

[smithless] 23/9/2021 09:31

For what it's worth (can't be any worse than house broker Liberum) FY2021 forecasts Revenue £93m, EBIT £32.5m, EPS 36p, cash generated £29m with closing cash of £37.4m. Estimate for FY2022 more difficult, because it depends how it uses its cash, but say eps of 12p and 2023 who knows, but depending on the share price I would do a placing and make a decent size acquisition, cos at the end of the day that's what invests want a growth stock and at present SBI has little visibility.

[riddlerone] 22/9/2021 18:52

Looks like US Covid testing still waiting for FDA clearance,surely can't be far off now as they did say Q3(was Q2).Picked a few up today and like you smithless looking to add on weakness

[riddlerone] 22/9/2021 08:42

Thanks for the link smithless will take a listen

[smithless] 22/9/2021 08:34

riddlerone - I agree, price looking a bit silly now. Listened again to Chris Mill interview hxxps://www.voxmarkets.co.uk/articles/vox-markets-fund-manager-interview-with-chris-mills-d8a6ec6/ and have started buying again at 130p or below. Maybe a silly move, but as you say risk reward and RSI point favourably

[riddlerone] 22/9/2021 08:23

This is becoming quite interesting on a risk reward basis.Could have over half the current market cap covered by cash at year end.Will be interesting to hear if the US facility is up and running for Covid testing.

[the millipede] 21/9/2021 22:44

Covid testing for travel is here to stay IMO - e.g. Forbes reporting a negative test will be required to enter USA, as well as vaccine. Caribbean has been same all summer, as have several EU countries.

Meanwhile U.K. based international travel still more than 70% off pre covid levels. Surely there will be scope to maintain covid testing revenues as travel resumes in earnest, despite day 2 test being abolished (day 8 has been irrelevant for some time as vaxxed travellers have not needed one from amber list nations).

The move to lateral flow testing seems sensible in this context. Not sure whether USA will require PCR.

[supernumerary] 21/9/2021 10:13

It's not capex that's the problem, it's marketing spend. And as for the pe, let's see what the forward pe looks like when the full year numbers are out.

[smithless] 21/9/2021 10:05

Has most of the capabilities to do personal DNA testing now, without much capex. Problem with SBI is it came to market on such a high rating. These testing lab companies are worth about 15x ebit max. If you look at companies like Yourgene (market cap £105m)which have nowhere near the reach of Sourcebio, but command a higher rating due to a more imaginative portfolio of offerings.

[supernumerary] 21/9/2021 09:29

I'm not convinced about personal DNA testing - all the purveyors have been struggling. SBI would be better sticking to the professional market - there's still enormous scope for growth.

[smithless] 21/9/2021 08:30

See the US will require a test NAAT/PCR 3 days before travel, so not all bad news. Think the directors have to start looking beyond PCR and start talking mid to long term strategy, deploying cash and how it can move beyond just being a testing lab and create USP in its products (personal DNA for example). The CEO needs to get a good story for investors to believe in.

[supernumerary] 20/9/2021 12:31

Maybe, but it hasn't shown much signs of following the market in the past. They are however still throwing off lots of cash, so have plenty of options for 'good news' announcements if they care to take them. A modest divi, or a well thought-out acquisition, or expansion of services - yer pays yer money, and yer takes yer chances...

And hopefully presented in a properly upbeat RNS :)

[9degrees] 20/9/2021 11:36

supernum - at least SBI should bounce back up when the main market bounces back up which it will IMO

[supernumerary] 20/9/2021 11:00

Bad day to release such an announcement, although they could have put a more positive slant on it. Price is now silly :)

[go2nc] 20/9/2021 09:48

Feel like an expert here. What I said here is now echoed by the analyst as well. Exactly what I said about NHS work is now there in analysts comments posted by VOX market. ?

[scruff1] 20/9/2021 09:29

Brummy
Its not just todays RNS - have a look at the chart from listing until today and then say again 'dont get spooked ' :-)

go2nc
'will pick up soon' Yeah?

james
Absolutely agree - the update better beat expectations - whatever they are

[go2nc] 20/9/2021 09:04

It's just not PCR company. Lot of nhs lab work for non COVID business will pick up soon as they need to tackle waiting lists. We been in all 4 nhs framework contracts.

[james188] 20/9/2021 08:31

The reaction contrasts starkly with what has happened so far today to the share price for MyHealthChecked, who issued an RNS this morning which said much the same as the one issued by SourceBio. Better to wait until the update next week to make an informed judgement.

[mr euro] 20/9/2021 08:10

I no longer hold any of these but do beleive this is a drop too far. If we wind the clock back to when they floated at 160 (from memory), surely they are in a better place. The testing was a bonus.

[pugugly] 20/9/2021 08:03

No 2 on the loser list - Ouch!!!!!!!!!!!!!! Lets see where it ends the day.