I’ve been onto this Company for quite some time, since they raised £16.5m at 17p. It’s been a ‘tough nut’ to crack, but as the saying goes; “Paralyze resistance with persistence” and in this case ‘persistence’ has paid off.
Yourgene Health (LON: YGEN) are an International Molecular Diagnostics Group, with a plethora of proven products that are on sale in the UK as well as globally through their many partners, affiliates and distribution network/s, (Too many to mention here).
What’s been missed by the market and retail punters is that there are currently contract negotiation’s on-going. Two of those contracts alone are worth 10s of millions of pounds in revenue. It’s my understanding that the US reproductive health contract negotiation and a Covid testing contract is expected to be signed imminently. Now news could come next week on one or both. It’s not nailed on, but my sources indicate that both contracts are as good as done! If that comes to fruition even within the next 3 months then the SP, 16.5p, should at the very least double, if not treble from where it languishes.
YGEN are currently trading below the placing (17p) end of Q3 2020. Now there are various reasons for that such as their recent RNS that revenue was below expectations (£24m) and would come in at £18m-£20m about 20% growth as compared to revenues for year ended 31 March 2020, £16.6m, which was a stonking 86% growth compared to the 2019, £8.9m. Problems with Brexit & the pandemic restrictions on distribution pared back revenue. But the Company are now well on top and back on track. I expect revenues, subject to confirmation of contract/s signed to be clearly smashed.
Special Situations List
Unbeknown to you the ‘Great Unwashed’ there are several High End Brokerages that have YGEN on their Special Situations List. That is to say that they like them and rec’ Yourgene as a decent value accretive stock, short to mid term. When I say ‘High End” I’m talking of Brokerages such as Pillings, Killicks etc Not piss poor bucket shops. Real Brokers.
I’ve taken a small position mainly because Yourgene Genomic Services have been added to the UK Government’s approved COVID-19 private testing providers list for the Test to Release for International Travel scheme introduced on 15 December 2020 as well as for general corona virus testing, which is now underway and gearing up.
Unlike many other Covid tests on the market, the Clarigene(R) SARS-CoV-2 ‘assay’ doesn’t rely on what’s termed ‘amplification’ of the S gene, where one of the key VUI-202012/01 variants (N501Y) is located, in the new virulent strain. What’s impressive is that YGEN has a “rigorous internal surveillance programme to ensure continued monitoring for the development of new viral strains. This includes database monitoring for SARS-CoV-2 variants with mutations in the N and the E gene which fall around the assay primers and probes, as well as impact assessment on these mutations on assay performance, evaluated by in silico analysis and wet lab confirmation.” as well as “CityDoc Medical, a 15-year old healthcare business, one of the UK’s largest private vaccination and medical testing companies with over 150+ clinics across the UK”, as one of their many, partners.
My Health Checked
One partner is My Health Checked (LON: MHC). That’s interesting, as I suspect that there’s some form of ‘crossover’ with these contract/s involving MHC. I can’t state that unequivocally but the fact that both companies are awaiting Covid contract news can’t be coincidental can it?
They’re fully funded, cash generative with a full product pipeline that’s now including Covid Testing with distribution and access to Global markets.
How high can they go, how high will they trend, 40p/50p/60p? At the very least they’ll get to 30p/35p, on the ‘trend that’s your friend’.
They’re a buy and hold for 3/6 months.
As always research them, over the weekend, see what you think. Don’t mortgage the house or pawn the Timex…. Stay firmly grounded.
Remember blog/s are nothing more than a pointer.