Below I share with my appreciated Investor Hub colleagues my comments to the very good article in Seeking Alpha today.
Thank you @Captain Alpha for sharing your perspective. I agree with your conclusion; the long term prospects of the company remain unchanged despite COVID impact. At current levels, the stock is very attractively priced.
Medium and long term, plasma demand remains high and the main players in the space, namely CSL ($CSLLY), Grifols ($GRFS), and Takeda ($TAK), continue to plan (and acquire) for additional plasma extraction sites going forward. $PAYS is in line to benefit from such continuing growth in plasma extraction expansion.
The Wirecard event impacted an important competitor of $PAYS, caused uncertainty among plasma extractors and resulted in $PAYS unusually increasing its pipeline for servicing additional plasma centers. Some of this should be apparent in the upcoming Q3 earnings report.
While the $PAYS history regarding Pharma goes back a number of years, emphasis in recent years has been in Plasma. Plasma is where the company concentrated efforts, developed volumes, grew earnings, and created the positive track record you mentioned. The contemporary Pharma segment is relatively new, very promising, and growing very rapidly ($7.4 Million in FYE19 sales vs. $367thousand in FYE18). I expect Pharma growth percentages to be very significant going forward (see Al Negron bio).
All in all $PAYS is my long term holding, despite the uncertain COVID dynamics, which is still unfolding.
Thanks again for sharing your work. I appreciate it.
