Polynovo, like CUV and NAN, is/are small (ish) health care/biotech stocks that we keep an eye on. We’ve found them far too expensive, for our tastes, particularly when every player in the sector has quite respectable growth trajectories ahead of them.

As such, it was interesting to note the below announcement. The stock has been de-rating meaningfully, for a while, and the share price trajectory would have only added to whatever pressures that were simmering away, beneath the surface, to which the statement below alludes to.

It is usually better to get out ahead of such things, rather than waiting for them to spill out into the public domain (e.g. the high profile Vocus-M2 board spat of a few years back).

I went back and dug up some of our previous comments, noting back in April ($2.96) the very high expectations (which raise the prospect of disappointment).

And that the net income expectations were similarly high. As had been widely noted in the press at the time, PNV’s ability to actually grow earnings had been a source of near perennial disappointment.

Stock now at ~$1.60.

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