There was a discussion here some 30 posts ago and posters didn't like someone's statement about PURE revenues going down after COVID is defeated. So I want to add to it. I just could'n find that post I wanted to reply to so I will add my two cents here.
1. Covid will be defeated at some point.
2. I think a vaccine will be as effective as a flu vaccine (not very effective) and unless they develop a miracle drug that will cure it right away - COVID will be a major issue for the next several years.
3. So PURE should be able to grow revenues for many more years. At some point - the revenue growth will slow down, but they should grow while COVID is here.
4. At some point (3 or more years from now) COVID won't be major concern due to herd immunity or available treatment. If by that time PURE has revenues of let's say $100 mln per year - they might suffer revenue decline and I wouldn't want to hold the stock when that happens. If their revenues won't be that big - they might still keep growing it by signing food processing companies.
Now, what I expect should happen in this crazy market.
We just had a normal consolidation with impatient traders couldn't hold it anymore while there are sure winners such as AMZN or TSLA.
Potential buyers are also waiting until they see an uptrend resuming.
We should start an uptrend soon and all those sideline money will be chasing the stock. Not many will be able to buy below $2 when no one will be selling.
I expect the stock to be much higher by year end.
We don't know what their revenues are going to be in this quarter, but I know the CEO was buying a lot of stock at $2 and that tells me something.
Many will depend on how steep their revenue growth is going to be when they announce it in October and the next quarter in December.
If they show good revenues growth - stock will be much higher than it is now. It can be anywhere between $4 and $10 depending on their revenues and market conditions.
I expect COVID second wave (real one , not the one they are talking about now) to be much worse since it will coincide with a regular Flu season. Same as with Flu, not many people are getting sick at summer time, but most everyone is sick in Winter.
November-January should be the worst and I would expect Covid related stocks doing very well.
I would expect the company will be getting a lot of new orders and people will start projecting how big those orders might get in the future years.
At the same time they should be eligible to move to Nasdaq so the robinhood gang will be able to buy it.
So the stars might align (stock and profits are rising, move to Nasdaq, Covid is in the news, new big orders are coming). Many will depend on their ability to expand production capacity. That is a key. A license deal might propel the stock.
My point is, the future might be very good, but in this crazy market that bright future might get priced in this winter or spring. If that happens - I would get out. Of course the next thing they will announce a deal with a pharmaceutical company to use SDC internally and it goes up another 500%.
