Q&M share price to rocket with NASDAQ gambit?
LIFETIME MEMBERSHIP The last time that I had covered Q&M share price was in 2019. That was really the land before time! Recently, a Lifetime Member requested for an update on this counter. If you would like me to provide my insights on SGX stocks, please do sign up as member here!
The coverage of Q&M share price is timely as I realized that the company recently managed to turn around from years of stagnant revenue and profit. COVID-19 imploded out of nowhere in 2020 and the company rode on the wave to stage an impressive recovery. But what truly got me excited was Q&M’s stunning announcement in January 2022 to explore a proposed listing of Acumen Diagnostics on the NASDAQ stock exchange.
Acumen Diagnostics is a joint venture of Q&M Dental and it researches, manufactures, sells and distributes COVID-19 diagnostic test kits, as well as provides COVID19 testing services. Question now is: what is the kind of impact that a NASDAQ listing would bring for Q&M share price?
It seems that Q&M Dental has hit the jackpot with Acumen Diagnostics. Q&M Dental recorded a record revenue and profit for FY2021 as gross profit for the COVID-19 medical laboratories rocketed nearly 20-fold from last year to hit $22.3 million. Probably because of this, Q&M Dental raised its effective interest in Acumen Diagnostics to 67% from 51% in October 2021. The strategic move was sound as I think Acumen Diagnostics could be a game-changer for the private dental healthcare group.
Acumen Diagnostics offers COVID-19 testing by polymerase chain reaction (“PCR”) for patients that require PCR test results and for travellers. It will also launch a panel of new PCR tests for infectious diseases, sepsis and cancer. The possibility to diversify its product offerings means that the business model of Acumen Diagnostics may be sustainable as the world shifts from pandemic to endemic. In other words, Acumen Diagnostics’ business is not pivoted entirely on COVID-19 and its variants. Thus, I am inclined to think that the NASDAQ IPO of Acumen Diagnostics could be a success, providing a positive spin for Q&M share price.
The recent misadventure of Grab provides a sobering reminder that there are risks in NASDAQ listing. The shares of Grab plummeted to US$3.36 on 7 March 2022 after the company announced a fourth quarter loss of US$1.1 billion. Now, Grab is purportedly facing class action suits in US. It remains to be seen if Acumen Diagnostics will suffer the same fate as Grab. However, one distinctive difference between the two is that Acumen Diagnostics is raking in profits for Q&M while Grab is burning huge amount of cash.
Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in Q&M Dental before. Whether Q&M share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.
Q&M share price in mood swings
Despite having strong business fundamentals and growth catalyst, investors need to pay attention on a key risk associated with Q&M share price. The founder, Dr Ng Chin Siau, is the Group CEO and also a major shareholder with stake of more than 50% through Quan Ming Holdings. For this important reason, he [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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