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Porky, a post a completely agree with.

Sorry, last post was a combined with an Avacta post.

What I meant was..

I doubt it’s more frustrating for me, I am only 6% down.

If you can’t see that solving the dispute is holding back the business going forward then ok, but I really also have to disagree.

They can’t currently use that cash because they don’t know what they will need to resolve the dispute. Any company they look to buy will be with less then they pay for it because of their current multiplier ratio.

Anyone looking to buy them will be massively put off because of the dispute or they get a bargain prove because they are buying damaged goods.

10 posts a day for something you are invested in for the long term, doesn’t seem like someone who is just “happy to watch all this play out”.

I doubt it’s more frustrating for me, I am only 6% down.

Given the FDA news regarding innova tests it’s unbelievable if they are still allowed to build a factory in the UK.

A company that builds completely faulty products and one which has been proven to fake the test results.

They stop the importing of a lot of Chinese goods like hover boards and stuff because of safety concerns about exploding batteries.

The health and safety impact of a faulty faked test is a million times bigger! So instead of stopping the importing we actually allow them to make them here instead! How in the world can that be allowed to happen.

If you can’t see that solving the dispute is holding back the business going forward then ok, but I really also have to disagree.

They can’t currently use that cash because they don’t know what they will need to resolve the dispute. Any company they look to buy will be with less then they pay for it because of their current multiplier ratio.

Anyone looking to buy them will be massively put off because of the dispute or they get a bargain prove because they are buying damaged goods.

10 posts a day for something you are invested in for the long term, doesn’t seem like someone who is just “happy to watch all this play out”.

Everybody is so obsessed by the “cash in the bank”!

The market didn’t really care about that before the dispute and they won’t care about it after it is resolved.

Companies are valued on the future potential but the dispute is a big uncertainty. Get rid of the uncertainty and the SP can be judged on it potential.

They should settle and if they take a big hit on cash then so what, I can’t help feeling the CEO is reluctant to because perhaps he would be expected to pay back some of his bonus, certainly the honourable thing to do anyway. Or at least buy shares with it and show he has confidence in his own abilities!

If the CEO were to step down like you want then there would need to be someone of high calibre already lined up to take his place.

The CEO stepping down when the dispute isn’t resolved with nobody to take his place or the CFO be becoming the interim CEO or something would send a very bad signal to the markets and have a very bad effect on the SP.

It would probably drop another 10%-15% easily.

The guy just needs to get his act together!

Apologies I was just correcting the terminology.

Agreed directors making big buys would also send a clear signal they expect the dispute to be resolved and have a great effect on the SP.

But not sure if they are currently allowed to buy because of the dispute.

Testing not going away though, not for years! So I expect this to bounce back. It’s just when!

Directors buying is just directors buying shares.

But I suppose I get what you meant.

I am trying to stay calm but seriously you think that is how company share buy backs scheme works?

Execs use company money to buy shares to go in their pocket. Come on..

There is no lower average for execs they are not their shares, they are yours, mine, everyone’s.

Buy back schemes means the company buy shares with company cash then the shares are deleted, reducing the number of shares on the market.

Because there are less shares the value of existing shares go up by the equivalent.

Kind of a reverse dilution.

Apologies I actually read that as where do you see the SP going in the short term without a takeover, my bad.

Which at the upper end of those figures would mean a return of 85% for anyone investing now! All guess work though!

The figures probably would actually stand up closer for a takeover though, I don’t recall many/any multi bag takeovers. Sure there will be some but not the way things normally go.

Also depends one what PE multiply the company who buys is trading at. One that is trading at 20x would automatically increase their value by 20x the ebitda they are buying. Hence some companies grow very big and valuable by acquisitions.

1. £4.00
2. £5.50 - £6

That is also one of the most ridiculous arguments.

You are saying he wants to keep the dispute going to keep the share price low so they don’t get taken over too cheap.

How do they ensure they are not too cheap? By increasing the share price, by resolving the dispute...

CEO will want his next big bonus but clearly he currently is unable to resolve the dispute. But these things take time, unfortunately governments have a lot of that..

People are giving the shorters far too much credit on this.

The current short interest is less the 1 days trading volumes even at these low volumes.

Less than one days trading for shorts to get out, as short interest goes it doesn’t get any better than that. Anything under 3 or 4 days is good sign for an investor.

So no shorts won’t be losing their shirts at anytime at all, they are just not in anyway deep enough, and our probably in from a pretty high starting price.

As the price rises they will close them and just reopen new ones again, not of which will massively affect the SP negatively or positively.

The issue with the SO is there just aren’t enough buyers at the moment. People talk of large trades going through, 40k, 70k. That isn’t even big in retail.

Sit tight, there is no conspiracy, when the dispute is resolved or new large contracts announced it will go up.

Jesus Christ, the Rampers are now losing faith now!

Just have some patience and if people stop listening to the crazy rampers they won’t be as disappointed.

The basics,

Testing is not going away for a long time
NYCT now cover both types of testing, PCR and LTF.
The share price drop is over done on a dispute that will be resolved.

Disregard all the crazy/foolish SP predictions by rainbow chasers and decide if you can wait a few months for 4.50 - £5.00

“However with Novacyts extensive established sales network sales should come quickly.”

Posted just earlier..

Well clearly the majority of the market currently has a different view to you.

It seems to think others are competing and perhaps because their futures are not currently just tied to Covid.

@RBMInvest

Couldn’t agree more!

I bet you have a good history of making money investing.

Not so sure about that, maybe if he wants it to grow organically but if they want to buy another company the current PE mutilple ratio makes that very difficult.

Basically anything you buy would be worth much less than you paid for it with the current ratio. Unless the business they buy is that big that the new companies PE multiple is used for the whole group.

Amers,

Unfortunetly Avacta finished about 8.5% yesterday so the rise there needs to be put into context, it’s not back to where it stated the week.

No need for ramping on any stock, just honest analysis.

Some more buying pressure will probably come before the end of the day.

The RNS definitely warrants a bigger rise than this.

Whatnonewsyet - alway better to back more than one horse. Just backing them at the right price is key. ;-)