COVID-19 Play: PPE and Sanitizer Capitalization
ThermaBright (THRM.V) although largely unknown has shown potential to be another COVID-19 play. This company is attempting to move into the personal protective equipment (PPE) and hand sanitizer COVID-19 markets. Major news outlets such as Bloomberg and CTV News believe it will be some time before the demand is met. As a result Canadian THRM.V still has opportunities to capitalize with the possibility of a second wave. Indeed THRM.V is up 75% today and saw large trading volume on this news.
Technically speaking we look towards the 0.045 (52-week high) and 0.050 price points. We believe this will just be a matter of timing the news more than anything.
Fundamentals
The financials for this company are nothing to write home about. As of January 31st and 6 months ended the company (in CAD):
- Is operating with a 17M deficit resulting in a total company equity of 0.056M
- Has no real free cash or revenue
- Has reduced their operating losses significantly from 0.56M for Q2 2019 to 0.12M for Q4 2020
- Operates with a net working capital deficiency of 0.37M
We don’t need to go into too much more detail that this is a high risk, speculative news play. It is important to note that the FDA submission has not even been filed yet and they have only applied for grants rather than received them. However, online platforms such as this one released today (May 14th) may give small biotech companies like ThermaBright access to contracts previously unattainable. Please refer to the original $MIR and $SONA pages for other COVID-19 micro cap plays.
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