Trading ideas for this week Quantafuel, Biovica, Hofseth

On May 12 I posted Quantafuel will never be so cheap. I argued that it is the time to buy before the company reports Q1. The share price on that day was around 28 NOK. Two weeks later it is trading around 44 NOK – 57% up. Congratulations to all who listened!

I believe that Quantafuel is still early innings. If they deliver on their Q1 call promise to run line 1 by the end of June at full capacity, than the share price should return to September highs of 70-80 NOK. If the company announces meeting the deadline, the share price should breach 100 NOK. These are my targets. Quantafuel is my second largest positon, right after Energy Recovery (ERII). I wrote on ERII here many times before.

I am bullish Biovica International. The company is hosting Investor day on JUne 9. Press Releases – Biovica

The company has an extensive clinical validation in collaboration world leading cancer centers for its cancer product:

  • 22 studies with peer-reviewed publications – 2,867 patients
  • 10 ongoing studies in collaboration with Johns Hopkins, Mayo Clinic, SWOG and more

The product has been submitted for FDA approval that is due to be received during 3Q21. The company should start performing well. In my experience the share prices of such companies go up before the investor day (9 June) and before the major announcement (FDA approval in Q3). The stock already started moving from mid May. I would expect this to accelerate in early June before the Investor day. I expect furthe share price growth during the Q3 before the announcement. I have a medium size position in Biovica. The current share price is 42 SEK, Pareto has a price target of 103 SEK.

The link to presentation:

PowerPoint Presentation (hemsida.eu)

I wrote last week that Hofseth Biocare share price should react positively to strong Q1 numbers, that I expected. I was right on the Q1 numbers. The company reported product sales revenues 100% up yoy. Unfortunately the financials were misunderstood. In 1Q20 the revenues included insurance payment which represented 50% of revenues in 1Q21. So including this insurance claim settlement the revenues were flat. But if you compare sale of products vs sales of products the revenues were up 100%. Unfortunately many people looked at the top line only and did not look at detail. As a result the company sold off by 15%. I spoke to IR who indicated that the positive revenue growth should continue and Q2 should be even better. The share price should catch up. I do like the story. I enclose resources for further study:

Investment thesis:

Top Value Creation Play In Biocare (OTCMKTS:HOFBF) | Seeking Alpha

Company latest presentation:

The medicine of tomorrow (hofsethbiocare.com)

Quarterly report

Hofseth BioCare | Stock Exhange Notices

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