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pickawinner - audited accounts up to 31st Dec 2010 shows 101million in cash - part of 280m net assets I accept that they may eat into that a little - but the trading update does still stress a strong cash position my real concern is that this rapid and steep fall in SP - 40% at time of writing - suggests that industry insiders may know that PVCS just can't compete with lower cost manufacturers. In which case they are in trouble and this profits warning could be the first of many. or it could be a ridiculous over-reaction to a temporary set-back from an otherwise sound company that is investing in its infrastructure and is well placed to take advantage of the long-term demand for solar. I'm not selling - but will wait a little while before deciding whether to top up.

Not sure £112m market cap is excessive MontyBlonde - especially as the company holds £101 million in cash!

gosh - down 38% in one hour's trading! The trading statement is not good - but more reflective of the (temporary?) glut in PV panel supply, and changes to the market in Germany. The likely suspension of the dividend is not good, but does it warrant a 38% drop in SP? Anyone tempted to buy more now - or wait and see if there is a partial recovery?

GW Pharma looks very promising, I agree. What do you think of its pipeline? It doesn;t look as strong as VEC's perhaps? also I thought the levels of board level pay very excessive - top 4 at GW phara taking home on average 500k each last year which concerns me at such an early stage in the company's development. But apart from that it looks good

I'm also a holder of BTG Group Lewis. Bought at 208p and it is 262p at the moment. Similar company to VEC in some ways - strong cash position, growth through licencing deals, and focus on therapeutics that are less to get rejected at clincial trials for toxicity issues. worth a look, esp if the BTG share price does dip back to the 230-240 level.

Time will tell Lewis!! Some positive broker comments in the last couple of days. They cite the cash buffer as a good thing, meaning the company can strike better deals with Big Pharma partners, rather than be totally dictated to. Many biotechs are in no position to strike good deals if they are burning cash too quickly and before they are profitable

som very positive broker comments following today's annual results. BTG did make a loss, after one-off operational costs, but the SP is picking up after a 3% fall earlier on in the day. Crucial 6 months as further news of the Varisolve phase III trials to come

It is a tricky one Lewis. I guess my view is that until Vectura makes a post-tax profit it is sensible to keep a good cash buffer. Too many biotech companies burn cash too quickly - and then no matter how good their IP and their pipeline prospects their value is eroded as they have to dilute existing shareholders by raising new capital or take on debt. The annual results does show that the pipeline is strong. So the temptation would be to invest more heavily in that now. However, while there is the prospect of further licencing deals in the short to medium term - and the 2012 launch of NVA237 to look forward to - I think the board is being prudent in keeping a cash pile. I am happy to hold these shares, and would not look to sell before the NVA237 launch unless they hit 90p. But I suspect they will largely tread water until then.

today's results are sound but not spectaclar. Cash generation is very positive, although the company still making a loss. I don;t think we will see much SP movement until there is more substantial updates on some of the phase II and III clinical trials. Any thoughts?

any theories on the 3.5% fall today? with results out on Monday this is perhaps a worrying portent!

To answer your question Callmeace - my valuation of PVCS puts it at about 85p per share, and I bought chunks at 61p and 59p. However I don;t think it will reach that level for quite some time to come, and, of course, may never do so. The market is punishing companies that reduce the dividend, and also seems to favour companies that prioritise cash generation. PVCS has of course reduced its dividend and made significant investment in its manufacturing capabilities which costs money. I also think the market is over-reacting to the reduction in FITS which is less of an issue for a company that trades globally. If/when the company increases profits and restores the dividend to previous levels then the SP is likely to rise. But we could be in for a bit of a wait!

Lewis is of course right. Vectura has yet to make a profit, and is trading at 150% plus of its net asset value. That means that the market is valuing its intellectual property at significantly more than its tangible assets and cash in the bank. As it happens I agree with the consensus that this company is a 'buy' - and future licence deals could significantly improve its earning potential and cash position. But to claim that any company, let alone a pre-profit biotech, is a "sure thing" is nonsense, sorry!

http://uk.finance.yahoo.com/news/BTG-PLC-ZYTIGA-Approved-US-afxcnf-4051537905.html?x=0&.v=1

useful write-up http://www.investorschronicle.co.uk/Companies/ByEvent/Results/default/article/20110401/74a00b72-5b99-11e0-9319-00144f2af8e8/Outlook-brightens-for-PV-Crystalox.jsp

This is good news - although the real upside will be if/when the company licenses VR496. Or if they can persuade a potential partner to fund part of the stage III trials

I have bought some more shares today - although wish I had waited for the price to fall further before I did! My lay-person's reading of the accounts is that their balance sheet is stronger than this time last year, and they have made some prudent capital investments that will repay in the longer term. It is disappointing that EBIT has fallen, but I was encouraged to see the cost of wafer production fall by 20% over the year. Long-term hold for me and a buying opportunity for those yet to own any shares