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That's what I do timster I sold at 115 I'll get back in at 150 when we get the rns
I thought they would just follow this chatboard and take globals excellent advice and insights.
Good point about the timing of the engagement with Ruane Skivy. AS said he’d been meeting with them for a while, certainly pre Covid. To think they were doing there due diligence then and decided to take a position at a 600% premium to when they must have started tells us something. At 120p Ruane see Avacta as a value investment. I couldn’t agree more!
Good summary of the Washington Post article on Ruane Schrow. The due diligence that has gone into the investment in Avacta is very significant. Avacta now join the list of only 18 companies in the Conifer fund according to the last 13F filing. I am hoping that the £10m taken in the placing was just the start of a stake building and they continue to add in the future.
Great post Schrow123 - I couldn't agree with you more. I was amazed at the amount of time Ruane spend on research before an investment is made -
"It’s not unheard of for a Sequoia analyst to spend a decade investigating a company, going to annual meetings, talking to dozens of employees, managers, customers, suppliers."
“We followed CarMax for a decade before we ever bought the stock,” Poppe said.
So how impressed would they have been with Dr Smith and Avacta for them to invest in a very small (mcap this time last year was tiny)? They are buying for the long term - and remember they were looking at Avacta pre-Covid.
The more I think of where we are with Avacta the more convinced I am that we are going to witness the birth of a "Big Pharma" company. Yes you can trade in and out and for those that can do so successfully - great but I can't so I am happy to hold.
I am glad I took part in the placing - giving the money directly to the company feels good - if their tech can help those with Cancer that's going to be fantastic for the world. I just hope we are not going to be taken over - if things pan out I am not sure there will be many companies that could afford us :-)
And this is SO much more than Covid. Anyone with any doubts, or needs to read about the opportunity, should read Myles Mc Nulty’s three pieces over the weekend.
Definitely a long term hold.
Good post.
Read the Ruanne article earlier. Link below for anyone interested.
https://www.washingtonpost.com/business/capitalbusiness/an-epic-winning-streak-on-wall-street--then-one-ugly-loss/2017/08/11/137fc2dc-7637-11e7-8839-ec48ec4cae25_story.html
avacta has found a bit a base around the 1.20 mark. Its gone up and down last few days by 20/30p.
so now the conviction on the investment to kick in: as it's going to be very wild in the next few days and weeks.
CEO said in the interview post placing that there's so much news to look forward to and he named them:
1. We have been doing live sample trials of BAMS test for more than a month both here and usa following the very positive prototype development within clinical range. Don't really know the demand or potential but it will add sales and also market affirmer platform.
2. It is more than 3 weeks since we heard of the affirmer neutralising therapy, they are looking for a partner, whatever the outcome it again demonstrates the benefits of affirmers. If we get a JV then that is a blockbuster news. We have a precedent of VIR & GSK $250 million equity deal.
3. LFD test got a working prototype announcement on 24th June, analyst said 3 weeks optimisation and CEO said after a week couple of weeks so anytime next week. This is obviously the biggie because the demand as mentioned repeatedly could be 100 million+ test per month. Sona sets a precedent here where upon a small scale validation it added more than $300 million to its mcap. We are obviously behind in timescale but have certain advantages over them: affirmer more specific, quicker to produce, more stable and cheaper and we get to learn from them as we work both work with cytivia.
4. CEO Said emphatically few weeks ago in an interview that they were looking at other forms of testing. We haven't heard anything about one yet so potential news.
5. Said in the interview that they have a few other diagnostics which have passed the validation process so potential news on that front.
and more....
10 million for covid and 35 million for other work so plenty of capital to put to use now.
Assuming we receive good news then the we are in for a news rich period.
fantastic article on twitter about Ruanne their due dilligence and their investment strategy ( have a read)
I am long in here so I'm looking at slightly bigger and longer picture here. If you wish to trade this then obviously your outlook maybe different.
Good luck all