I’m not JKB, but I know something about RCEL. It’s my 3rd largest holding.
Here is a post I made on Avita Medical (RCEL) on another board:
and some followup posts to queries from others:
I find it interesting that while RCEL is targeting a potential US TAM of 2Bin the near future, I believe the worldwide TAM is much much larger. Anyway, I believe in the company but it is early days so some volatility should be expected until sales and p/l ramp.
I also own RCEL, first bought it in March of this year.
There initial target market is the 200mm in the US burn centers. As you imply the $2B market opp requires additional studies, approval and time.
I would say I think the current valuation covers the current market opp. As you know the stock is extremely volatile.
I too look at it as a long term story. The technology is impressive.
Good evening Harrison !
Most often, not always, but most often, a REVERSE stock split is a warning sign. It’s done in order to keep the stock price high enough to remain listed on the exchange being used.
In the case of a reverse split, I would easily find a better place for my investment dollars.
Hope this helps,
Rich (haywool) no RCEL owned
I am also in Avita (RCEL). This Covid pandemic has hurt Avita’s ability to sell hospitals and train doctors in the technology. I am not selling or buying shares currently but am holding what I have. Japan approval (for multiple verticals) has also been affected in that the normal time frame for approval has come and gone without any news. The fact that a Japanese multinational company created a stand alone company to shepherd Avita’s technology through Japan’s trials and pay for it in return for the ability to sell their devices in Japan speaks volumes to me. Additionally The US government (BARDA) has paid for most of the FDA trials for Avita and has committed to stockpile their device. I stay in the name because of their record of 100% conversion of hospitals that have vetted Avita’s technology through their Value Analysis Committees. I strongly believe this will become the standard of care for burns. Additionally I expect they will successfully expand into areas such as soft tissue wounds, vitiligo, acne, diabetic ulcers and the holy grail of cosmetic applications. Based on their extensive history of successful compassionate use applications it seems to me highly likely of success in the areas enumerated. How long will it be until they can get back to their normal sales strategy? TBD that’s why I am not committing more funds at this time. The reverse split does not bother me. It was done to reconcile the Australian shares with those in the US when they re-domiciled in the US.
RCEL is clearly not a stock for our board. Please read the Rules of the Board. These posts will be deleted.