Deepverge - Part 2

Friday, 23rd April 2021 07:20 - by Moosh

As a long-term regular buyer in Deepverge (DVRG), how do I use newsflow to gauge how much I should buy?

Newsflow is important for long-term buyers as it should give continuous reasons for an investor to support a company. As I build a holding in DVRG, I generally assign two tranches to buy per positive news announcement, extending to three tranches for director buys and materially positive news items. These tranches are bought within my chosen buy frequency scheme. Since the start of 2021, here are the number of tranches I have allocated for selected news announcements:

11 January – maiden Q4 profit – 3 tranches

15 January – completion of compulsory acquisition – 3 tranches

10 February – additional two containment laboratories – 2 tranches

17 February - $5m production orders – 3 tranches

17 March – SARS-COV2 Breath test – 2 tranches

24 March – 3 year agreement with Microsaic – 2 tranches

31 March – project updates and full year trading update 2020 – 3 tranches

13 April – director purchase – 3 tranches

Deepverge April 2021 article

So far the total number of tranches to buy is 21, and as of today I have bought 6 tranches and look forward to buying the next 15 tranches, as well as additional tranches to boost the total from future newsflow.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.