By Malcolm Stacey | Tuesday 5 May 2015
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Trimmers. Investors in Advanced Oncotherapy (AVO) are in a peculiar situation. For though our shares are now trading at just a touch over 8p, they could be worth a lot more.
The share price has been held down by a huge placing of extra shares. These shares were lapped up by institutions and existing big shareholders.
We‘re told that this placing was over-subscribed. This suggests to me that the participants could have even paid a bit more for the new stock.
Two or three weeks ago, Advanced was on a massive roll. The stock rose to around 16p a shares from about 3p, just a few months before that.
So shareholders, myself included, were sitting on a huge profit at 16p. We should have cashed in then, as shares started to decay, helped by the company’s announcement that a placing was to take place.
So what happens now? Well, the placing raised a massive £20 million. A large chunk will be used to build its exciting new machines for zapping cancer cells with proton beams.
That extra cash should be applauded by all shareholders as it means the project is now well on course. Perhaps it will stun the medical world, though I understand there is a little competition somewhere out there.
Now it has this money in the bag, Advanced’s future looks tempting to this medical layman. I do know that some very big cheeses in the cancer world are involved in this venture, some of them holding large numbers of shares.
The share is now little more than 8p, but I can now see acceleration, now that the placing is out of the way.
It’s a popular view, anyway, in the Punter’s Return. More here
Malcolm Stacey has been writing about shares for more than 20 years. His first book “The Armchair Tycoon” was first published in 1998 but a revised 2014 e-version is now available. To obtain a FREE copy fill in the form HERE