Upwards from here15 Apr 2020 15:03
I think we will have lift off here fairly soon. In my mind, this is a very, very good buying opportunity.
There will very soon be an announcement about the lifting of lockdown. Other countries have started this process (Austria, Spain, Denmark, Poland and Norway). The US is setting out its plans later this week. The UK government is now under heavy pressure from the Labour party to set out its plans to end lockdown and May 11 is being suggested as the date that shops and schools will reopen. It may even be sooner. Even May 11 is just four weeks away.
Once the timetable is set out, the uncertainty about when the analytical studies will be completed will be lifted. We know from the RNS that the work is "very near completion", that there are only a "small number of analytical samples to be processed" and that the FDA submission will be made "within a few weeks of the current government restrictions being relaxed". These points could not be clearer.
We also know that all the points raised at the Q-submission by the FDA have been addressed. The prospects of making an FDA application are very high and the prospects of FDA approval are high.
In short, you could not have clearer guidance from Angle that once lockdown is lifted, an FDA application will be made fairly shortly thereafter. We also know that announcements about when the lockdown will be lifted are imminent.
In my view, those who are wise, will be accumulating during the period of uncertainty, with the share price at its recent lows, as the share price will rise significantly upon the announcement of the lockdown exit strategy / the lifting of the lockdown / the recommencement of the processing of samples / the filing of the FDA submission.
If this does go down to 42p again, which is unlikely, it will not be for long. I think it more likely that we will now start to see people accumulating shares. A number of biotechs have started picking up well. There is money in the sector and Angle's turn will come. They are attractive, with a major inflection point fast approaching and, importantly, they have masses of cash (£15.5m two weeks ago, with a further £3.4m of tax credits also due / being applied for) and do not need to fund raise.
I would be surprised if we were not back over 70p by the end of next month. The downside is low and the upside is high. The fundamentals are good and the sector is good. It is very attractive at the moment.
As ever, DYOR.
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