Hi all,
New on the forum last one month+. Mostly a buy/ hold investor, but am dipping my toes in small penny stocks that I see may return 10x over next 1 year. Here is one I think is a great one (excuse the format as I haven't learned the norm yet)...
What they do? They are pop up covid testing centers around the U.S. They are rapidly expanding. They have 44 up now (just started 2 months ago). The goal is 700+ later this year (all in high traffic areas think shopping mall parking lots and gas stations). They do antigen and antibody testing. They are cost advantaged with the most popular request being antigen test at $100 or so with >50% of labs charging more then that and even $200+ throughout the country.
Financials? They have done a great job of putting out an investor webinar every month thus far to show transparency. Their most recent numbers seem to be:
44 testing sitesx $95/ test x 95 tests/ day= USD $397,100 per day which is $15,129,510 per month or $181,554,120 per year. Medivolve projected EBTIDA is 55% and with that $99,854,766 EBTIDA profit per year. (credit to sarb99 on stockhouse for that data). They also have several side deals (Houston Rockets for their testing and RESAS (California real estate agent org.)
The above is based on 44 testing sites which as mentioned above should increase SIGNIFICANTLY thus this seems to the floor.
Recent catalysts?: 1. As mentioned above increasing number of testing sites every week with target of 700.
2. New agreement with East Hampton, NY city. The deal is for $1/3 million per month for what seems to be at least 6 months. https://finance.yahoo.com/news/day-one-launch-collection-sites-215400086.html
2. Deal with Kinross gold for $2million to get workers checked at one of their locations https://finance.yahoo.com/news/questcap-provides-covid-19-testing-123000295.html
3. Biden as already stated he is going to be funding big for testing when he takes office. https://www.marketplace.org/2021/01/05/biden-plans-federal-board-to-surge-covid-19-testing-what-might-that-look-like/
4. Preliminary talk of them being involved with vaccinations as well when they start mass vaccinated to the public.
Drawbacks? 1. They recently took a private placement for $5milion (CAD) to get the proper funding to ramp up as noted above to reach their target of 100's of pop up set up in the next 3-4 months.
2. What if covid goes away with vaccines? CEO (likely guided by his M.D's) correctly pointed out that even after vaccinations most folks will need to get revaccinated at some point which again will require testing to see if one's antibody count has decreased to warrant revaccination. After several years they have discussed being pop up for lab draws (if so that would be a MAJOR disruption to the lab industry).
Current price is 0.29c which seems a bargain. I got in at .20c and see this going to $2 EASILY.
Hope this helps.