Investors have certainly had to wait, and are still waiting quite patiently, for this to break through. In my opinion, the product itself, its purpose, and the benefits it brings are quite a no-brainer deal from the consumer’s perspective. However, commercialization and sales haven’t really taken off much after obtaining the permits, even though the product itself seems excellent.
The forum has probably discussed the market’s readiness to “receive” the product before, and there has been talk, among other things, about whether business takes precedence with the idea of more surgeries = more money for hospitals, or if the still scarce indications could be a limiting factor for adoption? Or is the reason why the product isn’t selling simply that there are shortcomings in sales expertise in one way or another?
By the end of the year, we will hear about the future directions as the company publishes its strategy update and new financial targets. This is likely the next clear catalyst that might sway the stock price in one direction or another. This year’s performance has also been quite brisk, so many will probably find it easy to make tax-loss sales from this, and perhaps that also weighs on the stock price this December. Next year, a financing round is probably expected again, and with it, some dilution of ownership. It will be interesting to see at what valuation they manage to raise funds in the next offering, and if there will be another offering after that, and then…
Perhaps the possibility of an acquisition also lives somewhere in the background? The market capitalization at today’s price seems to be less than 22M€, so it would probably be a bite-sized acquisition for some major player in the field (who?), if they see the product and the R&D pipeline with its permits, etc., as an attractive part of their current operations. The finished product, with its long permit processes, was still more than double the price in the summer. If a takeover bid were made for this, a small premium wouldn’t be enough to get out of this unscathed.
All in all, first the slowness of the permit processes and then the launch of sales have certainly managed to surprise me, at least. I made my first purchases from Springvest’s last financing round, topped up a few times after the listing, and used the summer’s warrants. The position is, of course, quite firmly in the red. At the moment, I don’t feel like adding more; instead, I’d gladly wait for some good news with my current position. This probably avoids buying “at the bottom,” but keeps the risks in check.
Now hundreds of millions have been forgotten, and the management team is pulling expectations straight into a pit and then pulling the rug out from under our feet.