Mention on ShareProphets29 Nov 2013 16:53
Avacta had a mention on ShareProphets today. Not much of an article, but a mention never the less. There could be a chance of a mention in the weekend papers because of the befits provided to dogs and the British love of animals makes a good story.
Story
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Hello Share Animals: I have a holding in a company called Avacta (AVCT). No they don't make films about blue people fighting for survival in 3D.
They are in fact an enthusiastic medical company, doing a lot of stuff for animals as well as humans.
I've held Avacta quite a few years and most of that time the company share price has been moribund. When there is no news about a firm the share price tends to decay anyway. And this is a regular happenstance with Avacta.
But the firm made an announcement of a new discovery this week – and the shares shot up by 15%. I'm hoping that the prices will rise even more when the penny sinks in over the next few days.
The message I think, gang, is that we should try to distinguish between shares which are going down and will keep on going down. And shares which are just falling simply because there is no news to fuel a rise in price.
I've said that I keep shares until they show a 15 per cent loss on my buying price. But if a share falls very slowly and the company has not been party to any bad news that we know of, then it would be daft to sell at a 15% loss. We need to give the shares more leeway,
Avacta proved this to me. But it happens to loads of small cap companies. There shares are not as affected by a rising or falling Footsie as those of a company giant. So even in a bull market, cheaper shares can keep on tumbling.
It's when they fall on bad news specific to them that we should think very seriously about pushing the sell button.