Member Info for Hedgehog100

Midas,

High net worth individuals like these, and billionaire Jim Mellon, would struggle to buy a FFWD stake in the market near the current s.p. that is meaningful to them.

That's where retail investors have the advantage.

If I had millions to invest, I would be gagging at this buy opportunity, but cursing the relative illiquidity ...

With FFWD trading at under half of its last published NAV (of 11.81p per share), it could potentially get taken over at a massive premium.

By which I mean over double its current share price of 5.75p.

This can happen to stocks which are so dramatically undervalued:

"SMALL CAP MOVERS: AIM drug developers face difficulties as highlighted by Abzena and SalvaRx
By TOM HOWARD, PROACTIVE INVESTORS, FOR THISISMONEY.CO.UK

PUBLISHED: 16:26, 17 August 2018 | UPDATED: 16:26, 17 August 2018

Two deals in recent days illustrate the problem with AIM as an incubator for fledgling drugs stocks. ...

Abzena for its part has agreed to be taken over by the world’s largest healthcare-focused private equity house in a deal worth £34.4m.

WCAS, which since 1979 has invested US$9bn in 90 companies, is offering 16p a share – a 167% premium to Abzena’s closing price on Wednesday, the day before the bid was made public.

Investors speaking for around 76% of the company’s shares have said they are behind the deal, with the board claiming the WCAS deal will 'better meet the needs of Abzena's shareholders, customers and staff alike, and provide a platform for further growth in the coming years'.

Shares soared 142% to 15.2p.

Fellow drug developer SalvaRx Group was another of this week’s biggest movers, adding almost two-thirds to its value after striking a deal to sell off its core immuno-oncology assets for a hefty sum.

Canadian outfit Portage agreed to issue 757.9mln shares as payment for SalvaRx Limited, equivalent to around US$75.8mln based on Portage’s closing price on the OTC Markets exchange on Monday.

That figure represents a premium of over 250% to SalvaRx’s market valuation on the day before the offer was lodged, the company said.

SalvaRx bosses said the company’s share price performance on AIM has been 'relatively disappointing' and that the sale was the best way to 'unlock and maximise value for shareholders'. Shares rose 64% to 73p.

... "

https://www.thisismoney.co.uk/money/investing/article-6071519/SMALL-CAP-MOVERS-AIM-drug-developers-face-difficulties-highlighted-Abzena-SalvaRx.html

It's now possible to buy FFWD for about the same price as its FD recently did:

27th Sep 2019 4:31 pm RNS Director Dealing in the Company

FastForward Innovations Ltd, the AIM listed closed end investment fund with a focus on disruptive high growth technology and life sciences businesses, announces that Finance Director, Lance De Jersey, has today purchased 400,000 Ordinary Shares of 1p each in the Company ("Ordinary Shares") (the "Purchase") at an average price of 5.9p per Ordinary Share. Following the Purchase, Mr De Jersey's holding in FastForward is 400,000 Ordinary Shares representing approximately 0.25% of the Company's issued share capital. ...

https://www.lse.co.uk/rns/FFWD/director-dealing-in-the-company-9pksd8ipel22k2k.html

He must be confident about FFWD's NAV, and future: and he is in the ideal position to know.

Thanks GC.

We've got the "Hope" ... now we just need the "& Glory" ...

John Boorman's "Point Blank".

Which he followed later with "Deliverance" ...

Remember this classic quote from Benjamin Graham, the father of value investing:
“In the short run, the market is a voting machine but in the long run, it is a weighing machine.”
https://www.goodreads.com/quotes/831517-in-the-short-run-the-market-is-a-voting-machine

Ben Graham was of course the author of the "The Intelligent Investor", one of Warren Buffett's three favoutire books.

FFWD's stellar track record of NAV increase:
31.3.15: 1.69p per share
31.3.16: 7.85p per share
31.3.17: 7.60p per share
31.3.18: 10.18p per share
31.3.19: 11.81p per share

= A 6.988 fold increase in four years.

And FFWD's last fundraising was at a 27.7% premium to NAV per share. -

FastForward raising a crisp £4m through placing
Fri, 3rd Aug 2018 10:43
"(Sharecast News) - FastForward Innovations has agreed to place 30,769,230 new ordinary shares at a price of 13p each with a number of new and existing investors, it announced on Friday, raising gross proceeds of £4m before expenses.
The AIM-traded firm said the placing price represented a premium of about 27.7% to its most recently published net asset value per share of 10.18p. ..."
https://www.lse.co.uk/news/FFWD/fastforward-raising-a-crisp-4m-through-placing-f4xe4uyv92tgryq.html

A comparison for the 'intelligent investor':

1. Tern PLC (TERN) 10.0p Market cap. £25.43M.
40.845% premium to last published NAV.

19th Mar 2019 7:00 am EQS Tern PLC: Final results for the year ended 31 December 2018
" ... The net assets of the Company at 31 December 2018 were GBP16,751,773 (2017:
GBP10,580,802). The net assets per ordinary share as at 31 December 2018 were
7.1p (2017: 7.38p). ... "
https://www.lse.co.uk/rns/TERN/tern-plc-final-results-for-the-year-ended-31-december-2018-qys89v18ckd3jlh.html

2. FastForward Innovations Ltd. (FFWD) 5.6p Market cap. £9.04M.
52.583% discount to last published NAV.

11th Sep 2019 8:00 am RNS FastForward Inn Ltd - Results for the year ended 31st March 2019
" ... The net assets of the Company at 31 March 2019 were GBP19,072,000 (2018:GBP13,534,000), equal to net assets of 11.81p per Ordinary Share (2018:10.18p per Ordinary Share). ... "
https://www.lse.co.uk/rns/FFWD/fastforward-inn-ltd-results-for-the-year-ended-31st-march-2019-zrk1qpvbcpsjais.html

If FFWD was trading at TERN's premium, FFWD's s.p. would be 16.63p.

There are two things in particular which could stimulate a bid for IQAI:
• A weaker sterling makes a takeover of IQAI cheaper for foreign predators, as they will get more sterling for their own currency.
• FDA approval is lengthy and costly, and achievement of it significantly derisks an investment.

So after FDA approval for StoneChecker software, combined with Imaging Biometrics' existing FDA-approved products, IQAI could be a very attractive takeover target.

To succeed though, I would think that an early bid would have to be at 20p or more, in order to get Trevor Brown and David Smith to agree to it.
TB holds nearly 30% of IQAI, and DS sold his last company for 178 million dollars (Tenaxix Medical, in April 2014 ... after it had gained FDA approval for its product in 2013).

At just 5.45p, IQAI's massive advances over the last twelve months, e.g. the Cortechs deal, the breakthrough on gadolinium-free imaging, and the $2.75M. US government grant, have yet to be really reflected in the share price, which has largely just returned to a similar level to previously.
And that's even before the upside from FDA approval for StoneChecker software, and the stream of positive newsflow that is likely to be unleashed by that.

Many thanks Dragon for posting that very encouraging news yesterday.

GE Healthcare unveiled its Critical Care Suite on 26th. November last year, and its 510(k) application was shown as pending with the FDA at that time. -
https://sctimes.io/news/article/43/6048

There are a few positives here for IQAI's StoneChecker software application, currently pending with the FDA:
• The FDA is willing to approve an AI medical device similar to StoneChecker software, and has just done so with GE's Critical Care Suite.
• The time being taken to approve StoneChecker software is comparable to that for GE's Critical Care Suite.
• GE Healthcare, the $19 billion healthcare business of GE (NYSE: GE), is very committed to this sort of technology, and IQAI would be a logical joint venture partner &/or acquisition.

Note that CorTech Labs, who IQAI partnered with in June, have agreements with very big players like GE Healthcare and others.

And that IQAI's David Smith (in an investor lunch in August 2018) has said that IQAI will probably later be taken out by GE or Phillips, who provide the hardware but have poor software that is 20 years old in many cases.

An IQAI joint venture with one of these large players, involving a large cash injection, could I think be a real possibility.

The most effective way to make money in investing is to buy cheap and wait.

At just 5.4p the market cap. here is fraction of what it could be a year from now.

The technology here is first class, as indicated by the new $2.75M grant (how many other small tech. companies are getting grant of that size?)

The markets being addressed are huge.

And crucially, it is non-cyclical in nature.

Non-cyclical stocks in general tend to exhibit the following traits:
• More reliable & consistent earnings.
• Can be held for long term.
• More sought after.
• Higher ratings.

"Health care stocks are another group of non-cyclical stocks. The healthcare industry -- including drug (pharmaceutical) stocks, medical insurers and health care service providers -- tends to be more recession-resistant and hold up better during bad economic times."
https://investinganswers.com/articles/cyclical-versus-non-cyclical-stocks

"Utility providers and companies from the health care industry are examples of firms that are seen as particularly defensive."
https://www.ubs.com/uk/en/asset-management/etf-private/investment-themes/cyclical-and-defensive-sectors.html

I'm sure it's just a question of timing, not of result.
The FDA is just doing what bureaucracies do: i.e. taking time with red tape.
But they're not a law unto themselves, and I think that they will be under pressure to deliver a result here, over a year now after submission.

If IQAI is holding back the interim results (released on 10th. September last year) for the FDA approval (as theorised by Hulk on ADVFN), then that supports the view that they believe the FDA approval could be announced any day.

It's frustrating that a very safe and effective product like StoneChecker software has not yet been approved for sale in the US, when vapes and e-cigarettes are being wildly sold in the US, and are killing people:

"What's behind a vaping illness outbreak in the US?
11 September 2019
... But over in the US, the potential health risks are in the spotlight, where this year there have been 450 reported cases of lung illness tied to vaping. ..."
https://www.bbc.co.uk/news/newsbeat-49649486

Warren Buffett: "The stock market is a device for transferring money from the impatient to the patient."

Warren Buffett: "The stock market is a device for transferring money from the impatient to the patient."

Elartu,

I think you're misunderstanding this.

The grant is being channelled through the Medical College of Wisconsin, but the money is then going to IQAI.

From Proactive Investors:

"IQ-AI’s Imaging Biometrics subsidiary wins US$2.75mln grant from US government

The grant provides Imaging Biometrics with income for five years, money which it will use to further develop its brain tumour software

Tom Howard
08:22 Wed 04 Sep 2019

Imaging Biometrics will use the money to develop more software solutions that can help doctors better understand and treat advanced brain tumours. ..."

https://www.proactiveinvestors.co.uk/companies/news/902007/iq-ais-imaging-biometrics-subsidiary-wins-us275mln-grant-from-us-government-902007.html

One piece of good news from the US Government received ... and one to come!

Obviously IQAI's technology has impressed the US Government, which supports the view that FDA approval for StoneChecker software is imminent.

A fantastic endorsement of the company and it's technology.

As well as being a very useful source of income, and a further stimulus for developments for its commercial products.

From Proactive Investors:

"IQ-AI’s Imaging Biometrics subsidiary wins US$2.75mln grant from US government

The grant provides Imaging Biometrics with income for five years, money which it will use to further develop its brain tumour software

Tom Howard
08:22 Wed 04 Sep 2019

Imaging Biometrics will use the money to develop more software solutions that can help doctors better understand and treat advanced brain tumours. ..."

https://www.proactiveinvestors.co.uk/companies/news/902007/iq-ais-imaging-biometrics-subsidiary-wins-us275mln-grant-from-us-government-902007.html

Thanks Degsy.

In my opinion StoneChecker software is very complementary to IB's products, and having a US and UK company within IQAI is very useful for cross-selling across the Atlantic.

So my feeling is that they won't be actively looking to sell separately.

Though of course if they receive an exceptional offer for StoneChecker software they may well consider it.

Also note IQAI's falling wedge pattern over the last few weeks, a 'deceptively bullish' indicator: i.e. a bullish indicator that inexperienced investors may view as bearish.

"Wedge
REVIEWED BY GORDON SCOTT, CMT Updated Aug 7, 2019
... The patterns have an unusually good track record for forecasting price reversals.
... Trading Advantages for Wedge Patterns
As a general rule price, pattern strategies for trading systems rarely yield returns that outperform buy-and-hold strategies over time, but some patterns do appear to be useful in forecasting general price trends nonetheless. Some studies suggest that a wedge pattern will breakout towards a reversal (a bullish breakout for falling wedges and a bearish breakout for rising wedges) more often than two-thirds of the time, with a falling wedge being a more reliable indicator than a rising wedge."
https://www.investopedia.com/terms/w/wedge.asp

Note that IQAI's pattern of generally declining volumes over the last few weeks is one of the key characteristics of a wedge pattern.

DannyAverage Fri 17:14 Posts: 34 Price: 6.10 No Opinion " ... momentum is dropping in this share. ..."

With regard to Danny's point two days ago about momentum, I can actually just repeat my 22nd. July post (when IQAI was 4.45p) virtually word for word: IQAI's current technical analysis trends from SwingTradeBot are virtually identical to then:

It's only lost a bit of momentum in the short term, and that can change very quickly. -

"Technical Analysis for IQAI - IQ-AI Limited"

"Trend Table & Recent Signals
ADX Long-Term Intermediate-Term Short-Term
Strong Up Up Down "

https://lse.swingtradebot.com/equities/IQAI:LSE#/