@Rapstar a follow up to your earlier straw on CSX. I agree a lot with this straw. Thanks for sharing Dr Berger tweet. I have been meaning to do a straw following the presentation however reporting season has been busy. So here are some of my thoughts on this company following results release. 

I recently commenced a very small position in CSX in both strawman and IRL.

I do have some concerns with CSX and will not add to this until I see some further uptake in the product. Following last weeks results and investor call I continue to have concerns around their distribution methods. Currently CSX have a world class product that they are having difficulty getting traction. Essentially they have reps who sell a range of PPE products. With the over supply of N95 masks, cheaper prices of these and just the simplicity of them they will continue to dominate this field. The reps would benefit from selling larger products but they will also just sell what they have available and an over-supply of. I got the vibe they did not have much insentive to push the HALO product by Cleanspace over other products that these distributors sell. 

Management mentioned they have had a lot of focus on distribution capabilities over the past 12 months. This includes adding to sales team including 17 new distributors in the industrial sector and expanding global training of the product. Lockdowns and just covid itself has restricted distributors particualry in the industrial side of things in the EU. They believe they now have systems in place to expand and are positive on growth.

Currently CSX sell to Healthcare (72% of sales) and Industrial (28% of sales). Over time this should be closer to a 50-50 split. Currently the Geographical split is 30% EU, 30% AUST, 30% in US 10% emerging markets. The significant area is the US with emerging dominance occuring in this market. In the US the healthcare sector dominates wheras in the EU sales are more Industrial dominant. This means that there is a lot of upside in the healthcare sector for the EU. Further as the Industrial sector starts to return to full functioning we should see further uptick in sales. 

My take on CSX is that as the world opens up CSX will see strong growth. I do firmly believe a transition from being 100% reliant on Vaccines which appear to have efficacy issues on transmission will lead to a greater need of protection of healthcare workers. At the end of the day if they can mandate vaccines for the safety of workers and patients than they should ensure all avenues are considered and this is where CSX growth may occur. Staff such as the one @Rapstar linked will demand stronger protection and IMO N95 masks which have limited evidence will not be good enough and COVID wards, ICU, ED, Paramaedics etc will need to find better alterantives. I would further expect PPE supplies to come back to a more normalised amount compared to what we experienced over the past year and therefore the distributors may be more inclined to sell the HALO product.

An additional point was that each unit has a $120 per annum per unit cost for accessories and parts. Currently there are 100,000 units worldwide (if I heard correctly). This is similar to the ResMed approach where they make a lot of revenue from selling parts and accessories yearly to maintain the longevity of the product.

Disc- Held