Precipio – Undervalued?

According to Merriam-Webster, the definition of undervalue is a verb meaning: to value, rate, or estimate below the real worth. So does this apply to Precipio? At this current point in November, I would say it does. Precipio, Inc. is a growing company in the burgeoning liquid biopsy space that is visibly executing a strategy to bring its’ class leading liquid biopsy products to the forefront, most notably their ICP technology.

When comparing Precipio to a couple of similar sized competitors, this liquid biopsy company is the only public one returning a gross profit and they have been consistent quarterly gross profits since the company merger was finalized last year. Keep in mind I’m talking about gross profit and not net income. Take similar companies TROV and BIOC for instance, they currently require millions of dollars in order to receive thousands in revenue and hence a consistently negative gross profit every quarter. However, their stock valuations are two even three times higher. Yes, PRPO stock has been bitten by the dilution bug, which they are working through, and although the company is a small cap and may not be well known by institutions, for now, it has found the formula to monetize their innovative liquid biopsy technology where others have not. And from the recent developments coming from management, it seems the company is continuing to build momentum.

In the liquid biopsy space, it is claimed that there are many companies jockeying for position to call themselves a leader in the industry. Most recently, the recent introduction of Guardant Health to the Nasdaq market and the hype surrounding that company. But as there are many companies to do research on in this space, very few are in that “sweet spot” of commercialization of innovative technology like Precipio. I continue to stand by my analysis that this company will likely become noticed by the larger investment public. Time will tell.