This lab company’s stock was hit hard by an SEC investigation into its COVID product, but our contributor (as you’ll see below) remains very positive about the stock. However, it is a speculative buy, so please be aware of the risks.
Predictive Technology Group, Inc. (PRED)
From S.A. Advisory
We remain committed towards Predictive Technology Group, our January 2020 pick, even though the price of its shares have depreciated. The company is devoted towards women’s health and is in the early stages of marketing its Endometriosis kit~ ARTguide. 200 million women across the world are impacted, and by 2030 the market will cross $4 billion. The company also has a test kit that deals with infertility issues~ FertilityDX (USA 12-13% women have issues becoming pregnant).
During 2018, $17 billion was spent in the US on fertility complications. Predictive also markets various stem cells domestically. Consider that Global Stem Cell Therapy was valued (2018) at $755 million and is expected to reach $11 billion by 2029.
PRED operates the most sophisticated/qualified lab (CLIA) for the extraction of stem cells. The company also holds at least 42 patents related to its scientific research and development. PRED owns the largest (300,000) Genetic Library of DNA samples with serious maternal and neonatal disorders.
Recently PRED introduced a verified 95% Covid-19 IgM/IgG Rapid Antibody 15 minute test kit. Both Covid-19 test kit and the company’s Mesenchymal Stem cells are currently in the queue for FDA approval assigning their EUA stamp of approval.
The company also has a collaborative agreement with Thermal Fischer (TMO) and Atrin Pharma (developmental cancer drug therapy company). PRED has developed a relationship with “Dablood” Pharma within China for Covid-19 testing supplies. Finally, if you spend some time reviewing management and the BOD, one would think this was a Fortune 100 company. Its auditor is Deloitte & Touche (#1).
Due to unforeseen “Blackswans”, PRED has been unable to reach the success that one would have assumed with its impressive assets, products, know-how and superior management. We believe that the black cloud that has encompassed this cutting edge Bio Tech company is lifting and that it is on the launch pad as a “moon shot” that is easily worth 10-15X the currently depressed share price.
We believe investors that own PRED at higher levels should average down their share cost. During the past 36 years that this publication has been in print, it is in our opinion that PRED is an extraordinary investment opportunity at current levels.
website: http://www.predtechgroup.com
A special note from our contributor re the SEC investigation into the company’s COVID product: PRED got caught up in the SEC round up of all or most covid-19 players. The company was cleared within two days, but the SEC never lifted the suspension and because of this it goes to the “grey” market until a 15c211 is completed and FINRA decides to resume trading on the digital system. The company’s CLIA is the most highly prized lab that the FDA approves. I stand by the recommendation.
William Velmer, S.A. Advisory, www.saadvisory.com, 949-922-9986, June 30, 2020