The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Better day today folks.
I must admit, I feared the worst this morning after yesterday’s major drop. Well done to those who managed to get in at a decent entry price.
Looking ahead we are one day closer to receiving an update on the LFT test. Hopefully tomorrow’s Cytiva presentation is positive and there is even better news to be released officially soon.
The resurgence of Covid is immensely bittersweet for holders. I am hopeful that those in profit would happily sacrifice this to return to normality, but IMO that’s a long way off. As such, Avacta may well be timing their play (coincidentally) very nicely.
Global news updates suggests that Covid is lurking and can pounce again without a moments notice. The one major thing that concerns me now is the Chinese market. If they go in to lockdown, the global stock market will go red.
I’m wary of investing in anything at this precise moment, but I suspect there is good news ahead for avacta, but awful news set to cause a domino effect from China.
‘We have enough money to do whatever we want to do’
Dangerous mindset to be advocating.
Please do not believe that Avacta has an infinite pot of gold.
If they don’t deliver the test to the standards promised, they’ll be remembered as the company who lied to the market to raise some cash.
You can’t put a price on integrity.
Wow - honestly lost for words on today’s drop. A heartfelt sorry for those who are in a bad position due to this. The stock market is ruthless.
I’ve seen a few people calling out the need for an RNS tomorrow. IMO, unless this is a significant product or partnership development, this will be the most counter intuitive thing avacta can do. It reeks of desperation and shows huge weakness.
I really hope they can get this test finalised and knocked out the park. Otherwise many people will be making some seriously large losses - both private investors and institutions.
An absolutely abysmal couple of weeks.
This will get absolutely smashed in the morning. An absolute sickener today but tomorrow will see this drop below £1.
As and when this happens the panic will really boil over and I forecast this to keep dropping as it has. Almost
20% today alone on the back of two brutal weeks of red, even with the US investor and updates on Thursday.
I honestly never thought we would be down here. This has the makings of a lifechanging share if people can get entry under 75p, as the LFT is sent for prototyping.
Congratulations.
Easy to say you’ll hold on a free run. It’s a privileged position which you have earned.
I’m not sure those who were late to the party, lacking experience and research will stick around once this dips below £1. If we go in to double digits this will be a blood bath.
£48m spent at £1.20 is close to taking a real battering.
Yeah - after the placing and the market knowing 48 hours before, the vote of confidence re integrity is out the window for some.
Time for avacta to deliver. Part of me thinks the past couple
Months is the art of skullduggery to raise funds for future r&d.
It was made clear that as soon as the funds were raised, the lft was put on the back burner in terms of priority.
A very quick pivot back to the cancer treatment. They should have been going hell for leather to get this test done, given the opportunity to corner the market.
I am playing the long game. Safe to say I’ve saved myself w fair old chunk of change.
It’s great to see my decisions made towards the end of last week now allows me to increase my number of shares by 25%.
All the very best mate.
I think it will come, but there is some legwork and time to pass before it does.
News again this morning providing evidence that there is a huge second wave of Covid brewing.
Given the overall market fear and downward volatility, added to the fact avacta is still a fair bit away from releasing the test, I believe a great entry price will arise here in the coming weeks.
Sitting on the sidelines accross the whole market just now. The selling isn’t done.
I stand by this entirely.
Avacta will become a safer investment at slightly higher investment price if they nail the test.
I explained last week my rationale for selling when I did. It’s with a view to getting back in cheaper having banked my profits.
I was confident and still at, albeit less so. Then, given the timescales re: test, this has fuelled disdain within certain shareholders which is causing the sp to drop.
I’ve made my opinions of the company very clear. What has left a sour taste is the Boohoo backhanders and the placing being leaked.
You can call me full if ****. Not going to lose sleep over an attempted personal dig on a bulletin board designed to help one another.
I’ll send you a bottle of champagne to enjoy once avacta takes you to a level of financial return where you can be polite.
Best wishes this week with your investments.
The sad reality is some investors need to constant reassurance in the form of RNS.
I think even the longest holding shareholders can agree the mood in the camp has shifted a bit, particularly in the past three months.
From March-June there was a strong, continued rise in the share price with no real dips. Now the SP has taken a battering due to the placing/global market sell off, as the two main reasons. This has led to rumour and uncertainty within the shareholders that avacta might be struggling.
Each morning we don’t get an RNS, I expect this to slip. Once we are closer to the test I expect buys to flood right in.
Good times ahead in this share. Just an annoying negative momentum just now.
All the best.
PL75 - I have been very honest with my assessment of the company.
As a profitable shareholder I hope my two cents on this board have helped one person.
There is no ambiguity that I am preparing my return to avacta shareholding. That being said I’m not going to come on here and I still fear. I am proving balance and my honest thoughts on what I think will happen.
It’s a pity you are knocking this and would prefer me to tell you avacta shares will be £150 by December.
It’s a big if because the magnitude of the challenge is considerable. The problems Avacta is trying to solve will be life changing for so many, but implementing the technology on a working, accurate device is taking longer than forecasted.
There is a also chance other players in the market will get their first. The market absolutely has scope for many major players, but, timing will be key.
At the moment, there are delays and each time this expectation is mismanaged, even slightly, shareholders are disappointed.
Avacta is still some way off releasing an approved, working test. Thus, I believe the sp will be reflected by this until there is confirmation that this product is a go-er.
If they pull this off it will be absolutely massive.
One look at the Covid statistics says we are in as dangerous a position now as we were in December. We know about the virus but we cannot control it’s without the detriment of the economy.
The global gatherings and pressure to re-open business are a lethal ****tail which is taking us towards the next chapter. I sadly expect many more deaths as we now move in to the summer months.
That being said, there is some negative momentum reflected in the current share price. The American investment is very useful but it won’t dictate the share price alone. Much is needed to restore confidence and thus an increase in SP.
If, and it’s a big if now, avacta can nail the LFT, the immediate response to SP will be considerable. The market is ripe for a highly specific and sensitive saliva test. The pressure is absolutely is on as product development always takes time and hits obstacles.
On no news re: LFT, I suspect the sp to dip as the week progresses. The sp fell following an update on the BAMS test and is indicative of certain shareholder frustration. It also doesn’t matter if the market makers are behind a dip in SP. If you lose a lot of money your mortgage provider, side and kids aren’t going to care who caused the dip in sp. it sounds a bit ruthless but it’s true. Many people seem to hide from reality in investing.
Good company with decent portfolio. The companies bread and butter can be revolutionary but is many years down the road. Some dodgy behaviour recently and I’ve still to make my mind up re Medusa. Potentially a master stroke if they can get close to performing like boohoo distribution but part of me thinks this isn’t the foundations for the global best in class test.
Everything is riding on the LFT. The world needs that so badly just now and I hope they can deliver.
Zoom/Watching2
At least I am honest, compared to the twitter millionaires. I am genuinely astonished by how wealthy they are, given they have ‘topped up another 100k on the dip’ every fourth or fifth day.
Let’s keep it sensible and humble. We are about to embrace a global recession and investing could be people’s only source of income for a while.
Let’s try to help each other out through sharing honest advice.
Take it easy
I am sorry to see people’s portfolios fall but I’m glad I sold yesterday.
I do aim to return but will be sitting on the sidelines, from the entire investing landscape, for the next few business days.
Take care all and stay safe.
Enjoy the weekend.
It’s worth recognising the state of the overall market too.
It’s clear investors are spooked, accross the entire globe.
Given this is due to the looming second wave, this should bode well for Covid stocks.
I hope that is the case, but wouldn’t be surprised if people again looked to invest in other recovery stocks.
GLA