Hi everyone. I am looking to invest long term and I don’t have too much money to lose, so I thought I’d research some cheap shares, but with lots of room to grow.
I found this small company – Tissue Regenix (LON:TRX)- that I think has a great future ahead (don’t they all, LOL) and my plan is to 1. buy a large number of super cheap shares today 2. hold them 15-20 years and 3. well, hopefully make some good money out of it.
So far, this below is what I discovered… perhaps you guys can be kind and help me understand whether I am delusional or perhaps I am onto something here.
Most recent trading update here.
– high volatility
– small market cap at 50M
– not listed on nasdaq (they are listed on LSE AIM (alternative investment market)
– they had a bit of a troubled 2019, couldn’t secure funding as they were trying to build capacity, then the pandemic came.
– currently unprofitable, no dividends
– a couple of proprietary technologies that could have multiple uses in regenerative medicine – orthopaedic (e.g. knee ligament reconstruction), wound care, dental etc. Demand is somewhat paused due to the pandemic, but it has never stopped. Elective surgery is merely postponed, not cancelled…
– shares currently at 0.68p (gbx)
– analyst view: undervalued, price to book ratio 1.3x compared to UK Biotechs industry average 7.4x.
– they are in capacity expansion mode, they already secured funding for what they call phase 1 expansion
– they have low debt
– revenue was flat in 2020 during the pandemic, despite the fact that all their products are designed for elective surgery.
– most of their sales are currently in the US, however they have FDA approval and (more recently) CE mark approval in the EU. they also have a joint venture with a German tissue bank, first of its kind in the region
– ownership: 53% institutional investors, 14% insiders, 14% VC firms, general public 16% or so, rest are companies and employee share schemes
– recently (May 2020) secured a white label manufacturing agreement with a top 10 global healthcare company for the launch of a new soft tissue orthopaedic product
– also recently secured distribution partners for the UK market with a specialized distributor that supplies to NHS. also secured a distribution agreement for Poland.
– very experienced management team – CEO, CFO, etc all have 20-30 years of experience in the market
– the company, even though it is small, is featured in market research reports for skin grafts – as a key player, alongside biotech giants like J&J / Depuy Synthes, Medtronic, Arthrex, Zimmer Biomet, Smith and Nephew etc.
I have not bought yet but I am very tempted to buy something like 200-300K shares which would be less than £2000 (I’m UK-based), then hold, hold, hold.
Does anyone have any thoughts on this? Perhaps have heard of this company. Please talk me out of it. Or preferably INTO it? 🙂