Some of the recent valuations have imho been – well, absurd.
So what next? I see 2 options for Avacta –
1. A straight buyout for £3-4 per share.
2. Products licensed to BPs, the fees for which will enable the Company to continue its R & D. It’s unlikely there would be any dividends, but obviously the Company will become more valuable, and the share price will rise. How far? 2-3 times the present level is my guess.
Some contributors need to study the laws of economics, essentially supply and demand.
The price of anything moves up and down as demand arises, and shares are no different. Where demand is low, the price falls to entice buyers. When the supply of shares falls away, market makers will raise the price to entice sellers to provide a supply. Simples.
This company is the most frustrating investment I have ever made in terms of the constant promise of jam tomorrow. Fortunately, as with other holders, I have traded the shares about a dozen times over the past 4/5 years to generate some financial benefit.