Avita Medical Ltd (RCEL)

[melody432]

Perhaps Tdeck will chime in on this, but I don't see them selling for less than $20/sh based on future sales and cash flow. Margins went from 56% to 67% q to q and that was with money spent on fixed capital costs, which eventually go away. They will get close to the 90% margins they predict at some point. By 2020 they should be doing $225+mm in sales, within 3-4 years I can see them doing $500+mm just in the burn market. At 4.5×sales(very reasonable for biotech) that would be close to $2.5 billion market cap. I don't think they'll be in a rush unless offered a really good price. They will ultimately have competition, but with no one else even in the process of FDA approval they have 3-4 years to build capital and expand into other markets. JMHO.