Been holding a position for a while and I added more todayBack in last year september, I started a position of decent size in VPH at around 30 cent per share. See my previous post on the VPH bull board below:
https://stockhouse.com/companies/bullboard?symbol=c.vph&postid=30168798
Of course, I sold half of my original positions for huge (100%+) gains later on but I am still holding a good chunk of free shares and today, I just added back more to average up my cost basis because I can sense something is brewing by the price action. I've been witnessing the growth of this company for over a year and now I am seeing the great secular growth propects of this little monster are emerging.
Here's my investment thesis:
1. Great story and great fundamental prospects. As a small pharma company, their average YoY revenue growth of around 50% has been decent IMO and look at their list of products marketed in canada and internatioanlly:
https://www.valeopharma.com/our-products/
Even if I just focus on their products for treating Parkinson's disease, the potential is very massivehere. There are roughly 4 million people living with parkison's disease and as we know it is chronic disease. If my napkin math is correct,if they can capture even only a tiny 2% of the market share, that would be an estimate of roughly 100M or even 200M precurring revenue per year in the future. Given that they are now trading at a market cap of 81.38 million, this means the company trading at a huge discount given their fundamental prospects.
2. Nice share structure: I love thin stock and roughly 70% of the shares locked by insiders here. So effectively their free float is only 18M or even less. It can make huge move easily if it attracts interest from the big money.
3. When I saw some big buyers smash the 1.20 big asks and buy aggressively today, I simply trust my own instinct and experience as a veteran investor and added a pile of shares to average up. Something is brewing here and I have no idea what it is as a small retail investor but I will be interested in seeing the development of this company and how it escalates in the future.
Given that pharma company usually trades at a price to sale ratio around 5, I believe we'll see VPH trade around a market cap of 400 million CAD in the future. My ideal price target for VPH is therefore $5.