Sunday 3 February 2013

Angle interims and Avesco share dealings

This week, the main news came from my holdings in Angle and Avesco.

Firstly, Angle released their interim results and details of a £2.2m fundraising. I am very encouraged by both news items. Although there is little further news about the progress of the Parsortix device that wasn't already known, the product is on schedule to be released for sale to the research market in the near future. News of this development should provide the next driver of the share price.

As I have mentioned before, the success or failure of Angle will be down to this single product. Despite chatter on the boards regarding Geometrics, Angle have stated quite clearly that their fair value holding in Geometrics currently amounts to £3.6m (some very fanciful figures have been bandied about on the BBs). They also state that "market changes may make Geomerics an attractive acquisition target."

Their other investment in EmbryoSure(R) has effectively been shelved for the forseeable future.

Just to clarify my interpretation of the accounts. They will sell Geometrics as soon as the opportunity arises to raise more cash to launch Parsortix, and they won't do anything about EmbryoSure(R) for at least a couple of years or so. Angle is all about Parsortix.

The fundraising shouldn't have come as any surprise  I have mentioned the likelihood in previous blogs, as well as my thoughts about their other investments:- http://michae1mouse.blogspot.co.uk/2012/12/a-new-angle.html

Fortunately, as hoped, the placing price was well above my relatively recent purchase price. I consider the placing price of 50p quite a coup for Angle, and clearly investors who participated in the placing are very impressed with the progress of Parsortix. Incidently my purchase price was well below 30p, and I continue to hold all my shares.

So where next for Angle. Well I hope that they are successful selling the product to the research market without any banana skins. If, and hopefully when, they reach this stage, the share price will comfortably exceed £1+, and any future fundraisings (should they need them) will also be above £1.

Make no mistake, this is a cross your fingers and hope for the best speculative investment, but so far so good.

Other news came from Avesco where Richard Murray picked up another £300,000 worth of shares at 150p a piece and three other Directors collectively sold £141,818.20 to cover their tax liabilities. The reasons given for the share sales are plausible and Murray's large purchase, Taya's 29.9% holding, tangible asset value close to the current share price and the possible Disney payout provide considerable reassurance.

N.B. As always, no advice is intended or given, this is a personal blog about my own experiences and dealings in the market.



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