Originally Posted by
Nigelk
I see PEB and my few other biotechs (all on the ASX) as speculation, not investing.
At circa 3% of my portfolio that's OK.
They will never have traditional growth curves.
The process is always (at least) twice as long and twice as expensive to get FDA approval (or similar, as in this case ), or commercialisation as you'd expect, even based on the most conservative estimates.
If PEB completes LCD inclusion and gets full reimbursement for CMS tests done to date, and does a similar amount of CMS tests per year @ USD$760 x 15K = NZD $17M and have a similar amount of business in NZ and other markets per year as they do currently, they'll grow revenue by circa 8X.
So imagine what the SP would be with that revenue, plus the future potential?
Investing in PEB is easy.
Either (a) put in a sum you're willing to risk, forget about it and hope it becomes your winning Lotto ticket eventually.
Or (b) say you don't accept the risk of this type of firm, so don't invest.
Or (c) invest, then get angry and anxious like most disappointed investors here.
There are two good options.....