MDC 0.00% $6.60 medlab clinical limited

Ann: Medlab to Expand Nutraceutical Range into 2,100 Pharmacies, page-5

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  1. 224 Posts.
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    Just doing some comparison and trying not to cross promote or name drop but that's not really possible if trying to find some semblance of a credible comparison.
    Essentially just looking at the value of the recent agreement with Priceline. I fully anticipate Chemist Warehouse will be signed as a distributor within the next three months as they cannot afford their competition to gain market share dominance of new pharmaceutical cannabis related products.

    Ref: BOD, Priceline 19th Sep Agreement, Chemist Warehouse 9th Nov Agreement.
    Record revenue of $1.22 million for the last quarter of 2018, underpinned by an expansion of its product range Bod achieves record revenue of $1.22m for the Dec 2018 quarter – with product sales comprising$766,000. Representing a 260% increase on Q1 FY2018 and 129% Q2 FY2018 expansion of natural medicines range, newdistribution deals with Priceline and Chemist Warehouse.

    This gives a relative (but inaccurate) indication of the kind of % sales increase to be expected from Medlab. 
    Medlab have sales revenue around $1.6mil for the Dec quarter so their sales should eclipse BOD if rolled out and marketed correctly.

    Medlab next quarter total estimated cash outflows -$3,495,000 
    Cash on hand as of Dec quarter $16,116,000. > 1 year working capital without any revenue or tax incentives whatsoever. If Including current revenue, Medlab likely has > 24 months working capital. Very healthy balance sheet.

    I anticipate Medlab to still be negative Net revenue 1st quarter 2019 but to then break even 2nd quarter 2019. After that I anticipate positive net cash flow sometime in 2nd half 2019. Half yearly report will be really interesting. Until then it's buy the dips and continue accumulating. Expecting a very solid back half 2019 with early 2020 to be a breakout period and get back to the $1.00 SP range based on sales alone and not taking into account further research developments or alternative distribution agreements.

    Above is not advice and assumptions were made that may be inaccurate. 
    GLA

 
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