Thread by @TaylorQuant

Extremely bullish by SourceBio this morning.

Novacyt is always extremely conservative with market communications, though they're at two different stages. Novacyt is making mid cap money, but talking like an uncertain micro cap in RNS. Hence the chaos.

But..

#NCYT #ALNOV

https://twitter.com/JjhColin/status/1381858029281423360

If you look at non-market facing communications from @NovacytGroup at the moment. They're extremely bullish and confident about who they are and what they're doing.

Led the way on swine flu, covid and the horse meat scandal. Strong USPs.

Sales director role with heady focus on NHS sales. Many roles are NHS facing. So many people are confused over the procurement dispute. That's just one contract, and just one part within that contract. Not a breakdown in a relationship.

The Business Development manager

'Ambitious growth targets'
'International travel'

Nearly 70 of these roles up at the moment and new ones listed literally daily and older ones filled almost daily too.

The language and volume in those roles speaks precisely like a fast growing high revenue diagnostics company. Not some flash in the pan 'covid testing stock'.

We do have a communications breakdown market side, but it's only because we got caught without our cash catalysts to sustain us until Mullis put out the long term strategy in Q2.

We had DHSC extension, LFT tenders etc which could have kept us on a run.

Extension didn't go ahead, LFT tender reworked and awards not until perhaps May onwards now (though we now have at least 2 LFTs in play, whereas we thought previously it was only antibody).

So we do still have those fun cash catalysts coming up.

But either way, all covid catalysts, even DHSC extension, would have been temporary.

That's really just trader bait. Though I love those because it increases our investment windfall for M&A and R&D in the non-covid areas.

Also note how Novacyt said they were growing sales internationally in Friday's RNS?

Well that's where the covid testing market is right now - not in the UK.

If you're in a testing stock. You want them to be selling where the cases are growing. See:

Globally covid is growing exponentially.

New variants emerging and deaths rising. UK took an absolute beating from covid, but we're insulated from the reality. Novacyt is pushing sales here and importantly internationally which is where their focus needs to be.

We need PROmate and we need these LFTs and we need them in all territories. UK is a tiny market compared to ROW. And we did good work here and deservedly got good revenues. Time to repeat that with covid wins elsewhere while we build the non-covid strategy out.

All signs points to Mullis being close to nailing this. Just an unlucky bad run there market side, but business wise, they're steaming ahead.

When Mullis comes out and say, sorry guys, we can't make, sustain and grow mid cap profits. Then I'll throw my hat in.

And you know now what he's like.

He'd do it too.

We're on track. Try to hold up emotionally while we're getting a kicking. Really hard for all of us. ODDO was a wind up yesterday to be honest, but all part of the game.

They're in this to make bank. They're a trading house too.

"Research" + Brokerage + Traders + Funds + Institutional Sell Side

All under one roof.

Think twice before taking outfits like that seriously.