Despite the S&P/ASX 200 Index (ASX: XJO) plummeting lower in 2020, shares in ASX 200 healthcare group Polynovo Ltd (ASX: PNV) are still up 102% in the last 12 months. That’s good news for existing shareholders, but is there still time to buy in?
Why Polynovo shares are up 100% in the last year
I’ll start by saying that Polynovo has not been immune to the recent market correction. The Polynovo share price is down 32.75% since the start of March in the current bear market. If anything, that correction makes its share price growth even more impressive.
Polynovo hit a new record high of $3.28 per share in February – 446% higher than where it started the 2019 calendar year. These are impressive numbers that put it up there with the ASX tech shares like Afterpay Ltd (ASX: APT).
The ASX 200 healthcare group specialises in burns treatment and skin cell recovery. Its NovoSorb BTM product is a dermal scaffold that helps skin regeneration when lost through surgery or burns. There’s no doubt that Polynovo is making waves around the world right now. Several high-profile sales and ringing endorsements from medical experts have also pushed the share price higher.
Is it too late to buy Polynovo shares?
Polynovo CEO Paul Brennan told the Australian Financial Review on 26 February that there was “no logical basis” for the share price plummeting lower. The group does have “lumpy” revenue and is currently loss-making. In Polynovo’s half-year results, the ASX 200 healthcare group recorded a 79.9% increase in half-year revenue to $10.2 million and a net loss after tax down 25.0% to $2.4 million.
I think Polynovo is definitely worth keeping an eye on right now. Since the share price started falling in late February, there have been 9 director share purchase ASX announcements. That means company insiders are seeing this as an opportunity to snap up a bargain.
If Polynovo can deliver strong revenue in August, the current $1.54 valuation could turn out to be an absolute steal.
Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading over 40% off it's high, all while offering a fully franked dividend yield over 3%...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
Motley Fool contributor Ken Hall owns shares of AFTERPAY T FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.