Therma Bright Inc. (THRM.V) Beginning Price: $0.03
Current Price: $0.145
Gain Since Inception: 383%
Target Price: $0.75
Upside Potential: 417%
Market Cap: $24 million
Shares Outstanding: 164 million
On May 12, we issued an alert on
Therma Bright Inc. (THRM.V), calling it the
Next Big Canadian COVID Stock. Turns out this was correct as the stock has moved from $0.03 to $0.145 after providing updates to the
Orpheus Medica Rapid Test for COVID-19 Virus in Saliva. The company closed a financing on July 22 and the stock rushed up 81% to close at a new 52-week high on Thursday. This is an indication of very strong demand for the stock and we think there is a lot more room to move. While THRM has recently more than tripled, we think that even at $0.145 this still leads to 3x or more upside.
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This prospective test with THRM's partner Orpheus is in the early stages. If this saliva test is successful, it will be far superior and more user friendly to the nasal tests currently in the market. Other COVID test kit producers like MedMira (MIR.V) (MMIRF) and Sona Nanotech Inc. (SONA.CN) (SNANF) trade at very lofty valuations. MIR has an approximate $300 million market cap and SONA $860 million market cap. A $0.75 stock price on THRM is less than $150 million market cap even when including the most recent financing. We think this is a fair valuation relative to these peers while in the development stage of the test. Of course, upon successful deployment, the Orpheus test should lead to a market cap similar to these other companies as long as global COVID test demand remains high.
Disclosure: We are long THRM.V