https://theconversation.com/covid-tests-have-made-pathology-companies-big-profits-but-rapid-tests-are-set-to-shake-up-the-market-169260

It's not an unknown factor, so I think this is an opportunity to exit the position if you bought in as part of a COVID-19 trade. Same applies to HLS and SHL, although as per my previous straw, the latter two are much more diversified businesses.

ACL has the most to lose if COVID-19 PCR testing revenue signfiicantly declines.

I've been running the ruler over this one to see if the valuation is justified after a few colleagues have suggested it's a buy.

From the recent June 2021 financials, revenues up $150m from FY20, translating to bottom line of $88m for FY21, up from $11m in FY20. This almost exclusively due to COVID-19 testing which has had a year of tailwinds, but coming up to headwinds with increasing vaccination rates and 'living with COVID'.

P/E on current numbers is about 15 is comparable to SHL (14) and less than HLS (46). SHL and HLS, however, have well established footprints globally and in Australia with a diversified pathology collection/diagnostics business, and COVID-19 testing has made up a much lower proportion of earnings growth for these two businesses.

ACL might be fairly valued at P/E 15x, but I can't see the opportunity in this one given the risks to revenue for FY22. Pass from me.