The potential return on investment in this company is pretty significant at these entry prices.
Covid testing is not going anywhere in the near future. The relectuance of large portions of the population to get vaccinated (even in Canada it is significant) coupled with our un-vaccinated children as the school year approaches are ensuring that. People don't mess around when it comes to the health and safety of their children.
----------------------------------------- Present Revenue Streams --------------------------------------- Testing - I expect testing will continue to track around 15-25K tests a month from the Film & Television industry alone. (Montreal exanded on July 7th, numbers maybe reflected in next test numbers already). Opportunities will arise this fall for further testing contracts in other industries to carry that momentum. Margins were awful in their first public quarter (~6%) but revenues were significant and they will improve efficiencies with time in operations. If they can arrive at their initial expectations of 20-30% then we are looking at NET profits between 1 & 2 Million dollars a quarter. You can be pretty certain that any free cash flow this company sees will be immediately put toward acquisition and growth.
Concierge - This is an industry that will continue to expand for a long time. A two-tiered health care system is quietly creating itself in Canada whether the politicians want that to happen or not. Although the company said this service will be starting on July 12th, I don't think we will see any significant movement on it for quite some time. Keep an eye on Concierge Medicals website for any changes to bookings / services that could act as telltales to this picking up. What it does do is provide investors with a framework of what the company wants to do, and what expansion and acquisition in the future would look like.
------------------------------------------ Future Outlook -------------------------------------------------------------
Guesswork all around here, status quo for growth stocks. The company has already done the legwork in going public, which is not insignificant. Although the Centred deal fell through, likely for the companies benefit, SCRN's appeal was that this was already complete and would have sped Centred's ability to do so up significantly. More opportunities will knock of a similar nature, likely more focused toward medical-technology.
In the end we're talking about a company whose current Market Cap of 13.5 Million dollars is a reflection of the markets complete lack of respect on "Covid Plays". In the end it will be up to them to prove they can convert revenue to free-cash flow over the next 9 months. This is the gamble in this investment. If they are able to pull out enough free-cash flow, you can expect an aggresive and rapid expansion of healthcare services. The management team here has shown they are willing to follow trends, and pursue cash into new fields.
I'm excited about what this company can bring forward, and we won't have to wait very long to find out.
285K Shares @ 0.035 cents is a very justifiable risk here while Retail Averages remain high.
Price Target - $0.12 in Dec 21