Friday, 24 July 2020

THRM: Two Months Later And It's Still The Next Big Canadian COVID Stock

Therma Bright Inc. (THRM.V)
Beginning Price: $0.03
Current Price: $0.145
Gain Since Inception: 383%
Target Price: $0.75
Upside Potential: 417%
Market Cap: $24 million
Shares Outstanding: 164 million

On May 12, we issued an alert on Therma Bright Inc. (THRM.V), calling it the Next Big Canadian COVID Stock. Turns out this was correct as the stock has moved from $0.03 to $0.145 after providing updates to the Orpheus Medica Rapid Test for COVID-19 Virus in Saliva. The company closed a financing on July 22 and the stock rushed up 81% to close at a new 52-week high on Thursday. This is an indication of very strong demand for the stock and we think there is a lot more room to move. While THRM has recently more than tripled, we think that even at $0.145 this still leads to 3x or more upside.
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This prospective test with THRM's partner Orpheus is in the early stages. If this saliva test is successful, it will be far superior and more user friendly to the nasal tests currently in the market. Other COVID test kit producers like MedMira (MIR.V) (MMIRF) and Sona Nanotech Inc. (SONA.CN) (SNANF) trade at very lofty valuations. MIR has an approximate $300 million market cap and SONA $860 million market cap. A $0.75 stock price on THRM is less than $150 million market cap even when including the most recent financing. We think this is a fair valuation relative to these peers while in the development stage of the test. Of course, upon successful deployment, the Orpheus test should lead to a market cap similar to these other companies as long as global COVID test demand remains high.

Disclosure: We are long THRM.V

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Mastering Microcaps: Strategies, Trends, and Stock Selection (Bloomberg Professional Library)

The Little Black Book of Microcap Investing: Beat the Market with NASDAQ/AMEX Microcap Stocks, OTCBB Penny Stocks, and Pink Sheet Stocks

Microcap Magic: Why The Biggest Returns Are In Stocks You've Never Heard Of

How to Day Trade for a Living: A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology

How to Day Trade: A Detailed Guide to Day Trading Strategies, Risk Management, and Trader Psychology

A Beginner's Guide to Day Trading Online (2nd edition)

Stock Investing for Beginners: Marijuana Stocks


Here are some other good stock market resources. This includes technical analysis and day trading, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies:

The dividend stock report from dividendstocksonline.com

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