I see Taya Communications have invested another £277,890 in Avesco at £1.57 per share. Ami Giniger, a non-executive director of Avesco, is the chairman and controlling shareholder of Taya. That brings their stake up to 29.99% the maximum amount they can hold before making a formal bid for the company (pedants might argue that they could add a further 0.00999 recurring percentage worth).
Taya had a bid for the company rejected when the share price was bouncing up and down in the 20p-30p range in 2009. The derisory offer at the time was in the range 28p-35p and summarily dismissed. It wasn't a difficult decision given that NTAV even at that time was north of £1.40.
The recent purchase seems interesting to me given my article "something on my mind" http://michae1mouse.blogspot.co.uk/2013/01/something-on-my-mind.html. If Avesco eventually receive their $60m from Disney and they distribute most of it to shareholders (as they have already indicated) then nearly a third will be pocketed by Taya. What will they do with that money? Will they come back with another bid for Avesco?
One thing is for sure, it would have to be a high multiple of their original offer. I firmly believe that Avesco is still priced well below fair value even without a payout from Disney. NTAV is £1.52, the company is profitable and growing and has an excellent reputation in its field. See link below for two recent awards received by Creative Technology:-
http://www.ct-group.com/news/ct-awarded-gold-twice-two-weeks
Avesco has done exceptionally well to grow organically into the teeth of a considerable economic storm. As economic conditions improve this company can only continue to prosper. Any prospective bidder would need to make a very generous offer indeed!!
Saturday, 16 February 2013
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.
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.
Sunday, 20 January 2013
140% gain in a day... just the tip of the iceberg?
It's not often that one of your investments makes a 140% gain in a day, but that's exactly what happened to my holding in a company called Angle this week. In an earlier blog I'd described my interest in Angle as a 'punt'. To be more precise perhaps I should refer to it as a speculative investment since even after the huge rise in its share price, still over 100% despite a pullback, I have no intention of selling my holding in the near future.
What caused this sudden surge? Well it was the news that "the Company has achieved a major new breakthrough in the potential use of its Parsortix non-invasive cancer diagnostic product". Full story at the following link:- http://uk.advfn.com/news/UKREG/2013/article/55820539. As I mentioned in my previous blog at the end of December, if their Parsortix device is successful then its potential is huge.
My guess is that this news wouldn't have been released if any major issues with their research partners (currently testing the device) had cropped up, in fact one might assume quite the opposite. It is just guess work at this stage though, and of course there are still any number of banana skins that could potentially derail the current smooth progress. However, for the moment, the chances of success have certainly tipped in Angle's favour. Furthermore, if Angle do need to raise more cash from the markets, which is by no means a given, then the likelihood is that any placing will be at a price well above the levels I was buying the shares.
I'm not getting too excited at this early stage, but part of my investing style is about perceived value and a balance of probabilities. I can't claim on fundamentals that this was good value (see my previous blog - A new Angle), but this week I can't help feeling that the balance of probabilities has shifted in my favour. This is one to hold for the long term and watch developments. It might all end in tears yet, but conversely it could be a multi-bagger in the making. Time will tell.
It's also worth remembering that it's in everybody's interests for Parsortix to be a success, since it has the potential to save thousands of lives if it can guide treatments and provide early detection for various types of cancer. On that basis alone it would be a truly fantastic investment.
On other issues Avesco's Creative Technology have a swish new website:-
http://uk.advfn.com/news/UKREG/2013/article/55820539
Well worth a browse to see the diversity of projects they undertake globally.
As ever, no advice is intended or given.
P.S. By the way since Angle has already risen by 100% does that mean I've won the 2013 stocks to double competition on ADVFN. Perhaps traders would say yes (they've probably been and gone) and long termers would say no!!!!!
What caused this sudden surge? Well it was the news that "the Company has achieved a major new breakthrough in the potential use of its Parsortix non-invasive cancer diagnostic product". Full story at the following link:- http://uk.advfn.com/news/UKREG/2013/article/55820539. As I mentioned in my previous blog at the end of December, if their Parsortix device is successful then its potential is huge.
My guess is that this news wouldn't have been released if any major issues with their research partners (currently testing the device) had cropped up, in fact one might assume quite the opposite. It is just guess work at this stage though, and of course there are still any number of banana skins that could potentially derail the current smooth progress. However, for the moment, the chances of success have certainly tipped in Angle's favour. Furthermore, if Angle do need to raise more cash from the markets, which is by no means a given, then the likelihood is that any placing will be at a price well above the levels I was buying the shares.
I'm not getting too excited at this early stage, but part of my investing style is about perceived value and a balance of probabilities. I can't claim on fundamentals that this was good value (see my previous blog - A new Angle), but this week I can't help feeling that the balance of probabilities has shifted in my favour. This is one to hold for the long term and watch developments. It might all end in tears yet, but conversely it could be a multi-bagger in the making. Time will tell.
It's also worth remembering that it's in everybody's interests for Parsortix to be a success, since it has the potential to save thousands of lives if it can guide treatments and provide early detection for various types of cancer. On that basis alone it would be a truly fantastic investment.
On other issues Avesco's Creative Technology have a swish new website:-
http://uk.advfn.com/news/UKREG/2013/article/55820539
Well worth a browse to see the diversity of projects they undertake globally.
As ever, no advice is intended or given.
P.S. By the way since Angle has already risen by 100% does that mean I've won the 2013 stocks to double competition on ADVFN. Perhaps traders would say yes (they've probably been and gone) and long termers would say no!!!!!
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