Avacta is starting to really move! For good reason!20 Aug 2020 21:45
I am sure all share holders are delighted to see the pick up in the share price following the UK health secretaries comments yesterday. Many investors were really wondering if the promise and the potential could be realised. As is always the case with AIM shares people are very fickle and usually impatient. During lock down it was very easy to focus on Covid shares and see immediate potential, but here in the UK as life has returned to 'semi-normality' it is a bit of a haze. But the world has a serious problem and testing is a major help, but mass testing is the real way to trace and isolate. The Rapid POC LFD from Avacta is going to be I am sure the most important step forward. It seems a sure thing that the initial production will be 100% purchased by governments. BBi will have limited capacity which is highly unlikely to meet the total need. If they are investing in more assembly machines and productivity optimisation it is unclear. But one thing which is clear Avacta are going to need multiple partnerships for production. The impact of a USA based manufacturing partner is going to huge too. This is an announcement which will really wet the appetite and mass orders from the US, and South America which has a huge need too opens up a mass potential which is going to bring huge income to Avacta if the expected take up is able to be met.
I am thinking the time gap now from BAMS going live and POC LFD going live maybe very short indeed.
The growth curve for share price appreciation is looking even stronger than any of us considered. Numbers around the world are really going to be off the scale. People talk of the fear of missing out and news really could come at any time.
I remember a Friday afternoon in April when Novacyt jumped from £2.50 to nearly £5 in less than an hour. The impact here will be equally strong but more likely to last for much longer. A test result in less than 10 minutes is going to have a much larger impact.
Theses tests will be selling for months even years in massive numbers. The perfect flexible option for Avacta they will be able to modify the test easily for ant mutations in the virus. The Affimer generation of diagnostics and therapeutics is about to go mass market!
Have a great evening all!
Cheers Rich
PS - Who knows where our value will go? Today Tesla has topped $2000 per share! No, I don't expect a valuation of $375 billion, but we are heading to the one billion pound very soon!