Member Info for StarBright

No!

If you add the same value in market cap to two companies in which you hold equal investments, the increase in the value of your holdings will be proportionate to the starting market caps NOT the number of shares.

Using your words "...for the same increase in cap OMI will move 20 times more percent than GGP, 800m / 40m = 20.0"

Let's try an example. If each company discovered £40m of gold, what would be the impact on their SP's?

OMI's market cap would increase from £40m to £80m. WIth 160m shares in issue the new SP would be 50p, a 100% increase.
GGP's market cap would increase from £800m to £840m. With 3.8bn shares in issue the new SP would be 22.1p, a 5% increase

Note that the increase in OMI's SP is precisely 20x the increase in GGP's SP.

That's 800m/40m = 20, not 3.8bn/160m = 23.75x

The number of shares in issue from each company is irrelevant. The value of each share will increase strictly in line with the % increase in market cap.

As I said above, I can explain this to you but I can't understand it for you. Either of you!

You might want to think that through mEM...

I can explain it to you, but I can't understand it for you!

Errrr..... the number of shares won't make any difference at all. To suggest it does is a bit like asking for your pizza to be cut in six pieces because you're not hungry enough to eat eight...! It's all about the size of the pizza, not the number of slices.

The market cap is what matters here. It is easier to add £40m to your market cap than it is to add £800m. If OMI adds £40m its sp will double. If GGP adds the same £40m it will be +5%. If you've invested £10k in each company, your OMI will be worth £20k and your GGP just £10.5k

steadyeddyguy - the narrow spread tells us only that we have a balanced market with pricing at a level where both buyers and sellers are happy to transact. If anything it indicates that market makers aren’t expecting news imminently, as they will look to widen spreads when volatility is expected.

But you said "whatever is being sold such as huge Sneller or other II sells is being hoovered up". That doesn't sound like investors sitting on their positions.

Either sales are being hoovered up, or investors have already taken their positions. Which is it?

Maybe the narrowing spread tells us nothing about imminent news? Maybe it is just an outcome of both buyers and sellers being prepared to trade at the current price? Perhaps MM's trimming the spread a little to secure the marginal trades?

steadyeddyguy - your original post said that the tight spread indicated imminent news - not a balance between buyers and sellers, lower volatility or risk.

So can you explain why a tight spread indicates that news is imminent?

If you can’t, could you consider giving the trading aphorisms a rest?

steadyeddyguy - could you please explain why a tight spread indicates that news is imminent..?

I am more inclined to focus on the snippet that ODX may be the only company with a product undergoing this process at present.

290k at 97.541p

An alternative possibility is that MHRA approval is being “slow walked” because the government are uncomfortable with the idea that people will consider themselves immune if a test tells them they have antibodies. An easily available test could thus compromise government policies on lockdown etc.

In other words, the test might pass all aspects of the approval process, but still not be approved as our government may be uncomfortable with the existence of such a test.

Pigster - I agree. The economics of BAMS hold water in these exceptional circumstances.

LSE seems to be a sandpit into which people voluntarily throw themselves to wrestle. Which is fine, it’s nice to have such a space. It just seems a bit more WWE than necessary. You make a salient point and then someone in glittery budgie smugglers and knee-high boots smashes you over the head with a folding chair from the top turnbuckle. This is the way it is, and participation implies acceptance of the reality.

For me the key is to identify those who are here to discuss, and those who are here primarily to influence. The would-be influencers are easy to spot, and can be safely disregarded.

The document is a good read, containing well presented background information on testing strategies and considerations in particular. Holders and others interested in the testing companies should read it.

But it is in no way a dispassionate piece of research with respect to AVCT. There is (for example) little discussion of competitive or other threats, beyond an assertion that the marketplace will be effectively unlimited. In his (former) professional environment - he was an analyst before they ceased to exist in large numbers following regulatory changes - the document wouldn’t have been viewed as properly balanced.

So read it, but be intelligent in your interpretation and choose carefully which sections to be influenced by.

For those with an appetite beyond "NT to buy on HL" and "MM's mis-reported my trade", this https://aimchaos.files.wordpress.com/2020/10/avacta-group-update-iii-part-i-1.pdf from someone called Miles McNulty is worth a read. It's based on AVCT (and readers should note the disclaimers on the last page...) but is broadly relevant if you are interested in the various testing plays. It contains some interesting discussion on the relative merits of sensitivity and specificity, some discussion on the different types of test and some conjecture on testing strategies.

Greg22 - could you please explain why market makers "...must be desperate for shares..."?

Funding as expected. Quote below is more interesting:

"Commencement of active exploration is still subject to the ebb and flow of the local Covid-19 situation; however, if current positive trends continue, it is hoped that geophysical surveys and drilling should be underway by early November 2020."

IP Group (IPO) was one of Neil Woodford’s pet projects. He owned about 15% of it before selling out in his fire-sale last year...

Well I’m missing Degsy’s 30-40 posts per day! He brought a certain energy and excitement to what was previously a more measured backwater.

Let’s hope for more of the “celebration worthy news flow” and less of the groan worthy “conspiracy theories about MM’s”.

I own a few of these. For once I welcomed the arrival of Degsy and his high-energy ministrations, although he is usually a good sell indicator. Especially when he leaves the building as he appears to have done here. His is an odd game...

Hopium posts here - NT to buy, coiled spring and all the other rubbish are a waste of space/time.

Proper news is needed.....