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Ian. The building work is not really about AVO. It is all about Howard de Walden and the investment they are putting into developing the site to increase its value for their own benefit. They couldn't do it without the planning permission that AVO got for them.There was to much opposition to it otherwise. Thanks to AVO Howard de Walden are going to end up with a vastly improve building that they will be able to let for loads more money than they could get before AVO came on the scene. If AVO survives then I am sure Howard de Walden will be happy but they will be equally happy if AVO fails.
The work will not go to waste because if AVO goes tits up the Howard de Walden Estate will merely rent the building out to some other company. It was always in the interests of the Howard de Walden Estate to redevelop the property but getting planning permission was a problem. The AVO lease solved it for them by enabling them to get planning permission for what they wanted to do anyway. If, of course, AVO somehow manages to survive the Howard de Walden Estate will be very happy to keep them on.
Only the BoD know that.
Ian1234. Of course they know far more than we do. That applies to the BoD of any company. It is why it is so important that they can be trusted. Warren Buffett is very clear that no serious investor should have anything to do with any company where there are doubts about the BoD.
2208ham Thank you for that. It is that potential that keeps me interested enough to keep an eye on AVO but I would never consider putting another penny into it until I can be sure it will succeed. In the meantime, I am using my money to make more money elsewhere.
Bimini. That is a very fair and accurate summing up of the reality of AVO. I feel sorry for those still clinging to their faith. They possibly feel that they have invested to much money into AVO to let go and save what money they have left.. Sadly, that denial of reality is a fairly common phenomenon. .
Ian1234 I know you have been following AVO for quite a while so you should know the history every bit as well as me. My take is that AVO has what should be a brilliant piece of kit with an unbeatable origin in CERN, a number of big names in science and medicine, with big reputations who have committed a lot of their own money to it and none of them have shown any sign of bailing out. On the other hand, they have demonstrated appalling management and financial skills by saddling the company with enormous debt and a death spiral loan that there is no visible way it can escape from. They were dishonest in telling us that the development of LIGHT was progressing in accordance with their published timetable when they knew that it was a long way behind. They only admitted it when they could no longer hide it. Their dishonesty cost a lot of loyal shareholders like me a lot of money. It is also a fact that they regularly diluted the potential value of ordinary shareholders' shares by awarding themselves very large performance bonuses in shares when there was no performance to reward themselves for. I am not saying that Tom Winnifrith is right in everything he says but he is right in pointing out that the company is badly run and is in danger of failing. imho the BoD is incompetent and does not deserve your trust.
I discovered IQE after I dumped AVO. I watched it for a while before dipping my toe in. Since then I have gradually increased my stake. Motley Fool have just published an article describing IQE in glowing terms suggesting that buying shares in IQE could enable people to retire early. I think that is a bit OTT.
PM44. IQE is an established money making company engaged in the research, development and provision of engineering consultancy services to the compound semiconductor industry. The Company's segments include wireless, photonics, Infra Red and CMOS++. The Company is the manufacturer and supplier of Compound Semiconductor wafers or epiwafers using a process called epitaxy. Its photonics business enables a range of end applications, from data communications and advanced optical-fibers, to sensors in consumer and industrial applications. It operates through business units, including wireless, photonics, InfraRed, CPV (advanced solar), power switching, light emitting diodes (LEDs) and advanced electronics. It produces atomically engineered layers of crystalline materials containing a range of semiconductor materials, such as gallium, arsenic, aluminum, indium and phosphorous. The Company has operations in the United States, Asia and Europe Its Compound Semiconductor wafers or epiwafers are considered to be superior to its rivals and are used to make chips that are used in smart phones, tablets, etc. IQE are the preferred suppliers to some of the chip manufacturers who supply companies such as Apple and Samsung. It is rumoured that their wafers may be installed in the new Apple iPhone 8 that is due to reach the market later this year. If that transpires then it is felt that it might have a dramatic effect on the IQE sp. Even if that doesn't happen, it is believed that their wafer will, in all likelihood, find its way into the new smart phones produced by Apple's rivals. Worth keeping an eye on imho.
To offset my pessimistic view of the abilities of the BoD of AVO, I suggest that people take a peak at a company called IQE. I think it looks interesting and might even have a future. Which is more than I think about AVO. I have a few shares in IQE which is, of course, why I am ramping it : ) DYOR
I have bad news and good news. The bad news is that the BoD of AVO are a bunch of financially illiterate geeks, brilliant in their fields but with no understanding of business. It doesn't help that they have a previous history of not disclosing facts about their lack of progress of the development of LIGHT. Saying it was proceeding to schedule when it wasn't.. It means that their word cannot be trusted. Having had that experience of AVO I would be disinclined to trust any assurances they might give on any aspect of the business. The good news is that AVO only holds the licence to LIGHT that they have been awarded by CERN. My take on that is that even if AVO goes under, LIGHT will survive and might eventually come to market. Presumably one of the big companies in proton therapy might take over the license on a rescue buyout of AVO or be awarded a new license by CERN. imho, The best hope for AVO shareholders is that they might get some compensation from a rescue buyout.
The biggest risk I see is that AVO might go under and the CERN licence for LIGHT might be transferred to some other company.
I got out when I realised that the Bod were telling us lies about the development of LIGHT and were not to be trusted. I have not regretted leaving but I keep an eye on AVO in case they do manage the impossible.
Think of him as belonging to the gig economy having to do a number of part time jobs at the same time in order to make a living. In his case, a very good living. It is quite common with people whose expertise is in demand..
the BoD hadn't been so economical with the truth in the past.. They kept telling shareholders that the development of LIGHT was on track for completion within their schedule even when they were no where near being on track. Their deadline for completing the development of LIGHT was well over six months ago and they are still nowhere near completion. They only admitted they were way behind schedule after the fact was already obvious to everyone so they could no longer hide it. It means that the BoD are not to be trusted. Apart from that, they are haemorrhaging cash, are swamped with debt and are in a potentially fatal death spiral with the Braknor financial agreement. imho, the chances of AVO surviving as an independent company are remote, no matter what happens to the LIGHT machine or Harley Street. I would be very wary of buying in at this time. I think the sp will drop significantly before it recovers. If it ever does.
So you have yet to learn the AVO lesson. There is an old stock market saying that, 'If a share price has been dropping and you think that it cannot possibly go any lower, it probably will.' AVO does not actually own LIGHT. It is licenced to them by CERN. I do not know if AVO goes into administration the licence can be sold to another company or if it would revert to CERN.
Been there and got the AVO teeshirt. LIGHT might be world class technology with massive potential but there is little hope of AVO shareholders ever benefiting. It will be some other company that will get the benefit.. AVO cannot survive. It is in too much of a financial mess and the BoD is not up to the job..
LIGHT far from being complete. No sales. An inept BoD The future does not look good .
still a long way from completion I feel confident that LIGHT will eventually work and one day will benefit cancer sufferers but the jury is out on who will own it and reap the financial rewards.
Not all AIM companies are all that risky. Only those with a poor plan or poor or dishonest management. AVO certainly have the first two.