Wednesday, 12 September 2018

Brief rant: Feedback Medical (FDBK)

I've seen my fair share of "dream investments" enter my portfolio over the years only to be smashed on the rocks of despair a little down the line when it transpires the product is unsellable, my entry was over-priced and/or the BOD are up to no good.

So it should be no surprise to see a company appearing to do well yet the share price moving in the opposite direction. Yet here I'm happy with the product and content with my average and I can't let this one go.

I held all through Trevor Brown's disorderly selling of over 20% of the company's stock on the open market, averaging down throughout. And then stayed firm through a recent rocky patch which saw a new CEO come on board, with high hopes and expectations, only to leave 6 months later after signalling to the market he wanted to raise funds for the second time this year.

And then the breakthrough came. Feedback added to a its handy chunk of research sales with its first clinical sale of TexRAD lung, through a previously-announced tie with GE Healthcare, no less.

And if we needed to see more than one sale to prove TexRAD Lung is a viable clinical product, a second order was quick to follow - from another huge global name: Samsung Medical.

This breakthrough comes in the same year that Feedback appointed Simon Sturge, current COO of Merck Healthcare, as a NED.

I know this company has had its knocks, but to see sales start to arrive and the share price go the other way is just a tad frustrating. Yes, short-term considerations will come in to play (cash, market volatility) but I can't help feel that something else is also in play on this share.

With the first clinical sales through the door and ties to 3 multinationals I can't see it taking too long for this very negative phase of AIM gamesmanship to play out and hopefully see some ROI after sticking more or less to my investment plan over the last year+

Here's a recent interview with executive chair Dr Alastair Riddell

Brief rant: Feedback Medical (FDBK)

I've seen my fair share of "dream investments" enter my portfolio over the years only to be smashed on the rocks of despair a ...