Polynovo (ASX: PNV) Update

Sorry for being so quiet over the last year, work has been hectic and although I had been working on a few new posts, I hadn’t had the time to review them / do the due diligence.

Regardless, I am here to give a quick update on Polynovo.

Polynovo has been on a bit of a ride these last few months, hitting an all time high of $2.50 then riding all the way down to $1.60. The $2.50 high was related to both entering the S&P Index 200 and momentum.

The $1.60 low in my opinion was related to a loss of momentum and the release of their AGM/Sales address in December, where they didn’t disclose any sales/revenue numbers. Personally I found this announcement quite odd, as I really would have liked to see some figures so I could readjust my model etc.

This being said however, they have now informed the market of their first $2million month in December which beat my expectations of revenue growth. Initially I had forecasted $75k growth per month, but I had to double this to $150k per month to reach $2million of revenue in December.

I originally sold my position back in December but have since added again. My 10 year forecasted DCF share price has been adjusted to cater this growth and now sits at $2.75 per share . This price in itself has a bit of technical factor to it as well as the previous stock price high hovered around $2.60 .

As such I will be holding this stock and will re evaluate technically once it approaches the $2.60- $2.70 range.

Posted in ASX

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