CBDT and the Wild West...Wow! What a wild last 48 hours. Noticed this news was released at the open this morning....
Walgreens now sells at-home saliva COVID tests (msn.com) the tests are $120 US or about $ 150+ CDN. Same deal as Empower, do test at home send to lab and get results back 24 to 48 hours after lab receives them. Costco also offers a Covid Saliva test for $130 US. To me this shows that there is both demand and money to be made.
I wouldn't be surprised if Empower cuts a deal with Rexall to distribute it's Saliva test (it only makes sense) and I wouldn't be surprised if they made a deal with McKesson with their 5,000 Health Mart pharmacies in the US. Steve has stated that talks with pharmacies are ongoing. Maybe this (Walgreens) will spur a deal.
The Covid testing market is like an old school Wild West free-for-all land claim. Empower isn't going to get the whole pie, no one will. But just a healthy slice of Travel, Airlines, Cruise Ships, Film/TV production, at home or Commercial business and revenue is going to grow significantly.
I used $ 100+ US and 130 CDN last week to show what 1000 tests per day looked like revenue wise. 1000 x 130 x 30 days that's $3.9 mil a month.
That's $46.8 million a year using a Sales ratio of 10 and 285 mil shares.
468/285 = $1.64 a share just counting their current KAI testing numbers and nothing else.
In October Kai was doing a handful of tests per day, the Saliva test launched at the Holiday break, now Kai is doing 1,000 tests per day. We know demand is growing, every interview Steve does he mentions how demand is coming from everywhere, it's showing in the numbers. The company is expanding it's testing capacity from 4,000 tests per day to 12,000 tests per day in just 2 months. If you believe Steve and the team are going to execute over the next handful of months, sit tight and hold on to your shares.
PS Please ignore the basement geniuses who after the fact shorted perfectly, maybe mom said no more XBox today....