Hi Bruttz thanks for your insight. Seeing as you are so...

First 4 Last

Share
Profile

Follow
DrJarkos

411 Posts.

41

15/04/18

23:17

Post #: 32469016
Share

Originally posted by bruutz82 ↑

I believe NUH is a perfect short at the moment – it is currently at an unsustainable high share price as when you review NUH’s fundamentals they do not support the current $86m market cap.

1)December 4C indicates NUH is still not growing in receipts. Arguably, NUH’s shift to a hearing aid focus is because of a lack of growth as indicated in Dec and Sep receipts which are not growing.

2)What are growing are NUH’s outflows/ payments to acquire. 4C reported – Dec - $4.6m outflows/payments., Sep - $4m outflows/payments., June $4m outflows / payments. The impending April 2018 4C indicates expected outflows of $4.5m with likely higher costs that will attributed to outflows - plant (generally $800k or thereabouts per quarter.)

3)NUH is also in capital raise territory – with only $5.6m in the bank as of the last quarter and with a burn rate of approximately $4m per quarter (after accounting for receipts) to be reported in the next 4C (April) that only leaves NUH with about $1.6m in the bank.

4)Whilst NUH may be targeting new markets and re-aligning itself to the hearing aid market as we know with NUH these things take time and do not show up in receipts very quickly.

5)Hearing aid providers also look to sell hearing aids with the greatest margin even when there are reasonable aids at lower prices. Not surprisingly, Retail providers of aids want to sell them at the highest prices with the greatest margin in order to take advantage of the governmental Hearing Services Program (HSP) fund.

6)NUH’s share price moved up on a lot on the hype of recent announcements that offer a level of perceived ‘blue sky’ but do not actually offer anything in regards to receipts in the near term. This means, more poor 4C’s, more cash burn, capital raises and subsequent dilution for NUH.

7)In my opinion NUH in the short term will move back down into the 7c range. And a good potential short to make 35% profit – especially with a looming capital raise in the next quarter. Longer term - if NUH can’t start to build receipts in its focus toward its hearing aid related market direction and hit cash flow positive – holders could easily expect more capital raises making it a strong long term short.

Expand

Hi Bruttz thanks for your insight. Seeing as you are so confident to short NUH I reckon you should - the arguments you have put forward make it seem like a sure thing. Please post a confirmation tomorrow of your short position once taken, I wish you well with your investment

NUH Price at posting: 10.5¢ Sentiment: Buy Disclosure: Held
19 Upvote

0 Great analysis

Reply

Top Stories

S2R

S2 Resources set to spin the bit at Jillewarra

NOV

Novatti cashes in on AUDC investment with $1.2m stake sale

Expert Exchange: Buy the turnaround in travel stocks, or avoid the turbulence? Philip Pepe explains

KTA

Krakatoa Resources kicks off 2026 drilling program at Zopkhito

Expert Exchange: David Sokulsky on AI trade, chip stocks, and where to invest now

CHW

Chilwa Minerals confirms lengthy rare earth corridor beneath Mposa HMS deposit

LISTEN: HotCopper Wire Podcast #052 – Finger lickin' not so good

HotCopper Highlights: Judo crashes while AI, biotech and explorers dominate HotCopper

MAT

Matsa Resources reports significant gold trend discovered with AngloGold drilling

From the Wire: Silver's once-rocketing meme trade now officially 'dead and buried'

First 4 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

Hi Bruttz thanks for your insight. Seeing as you are so...

Top Stories

S2 Resources set to spin the bit at Jillewarra

Novatti cashes in on AUDC investment with $1.2m stake sale

Expert Exchange: Buy the turnaround in travel stocks, or avoid the turbulence? Philip Pepe explains

Krakatoa Resources kicks off 2026 drilling program at Zopkhito

Expert Exchange: David Sokulsky on AI trade, chip stocks, and where to invest now

Chilwa Minerals confirms lengthy rare earth corridor beneath Mposa HMS deposit

LISTEN: HotCopper Wire Podcast #052 – Finger lickin' not so good

HotCopper Highlights: Judo crashes while AI, biotech and explorers dominate HotCopper

Matsa Resources reports significant gold trend discovered with AngloGold drilling

From the Wire: Silver's once-rocketing meme trade now officially 'dead and buried'

Featured News