Abcam Share Discussion Threads

[campbed] 15/9/2010 13:17

I'm amazed how quickly Abcam's share price has risen through £15, £16 and now £17.

Their business model is the nearest I know of to a commerical perpetual motion machine as the more products they introduce the more the academic researchers for free document experience of usage thereby preparing others to purchase it for further research. All Abcam have to do commercially is to get potential users to use all that free info on Abcam's website -- i.e. brand recognition and some technical support- which extra costs are well covered by high gross margins. So very high operating leverage and minimal commercial costs!!

[m.t.glass] 07/9/2010 10:51

One small side effect of a share split will be that spreadbetters who like to limit their exposure, and who deal via a bookie allowing nothing smaller than £1 per point, will be able to open a bet that equates to something much smaller than now (a minimum £1 stake at 1700p equates to a shareholding value of £1700), as long as the bookie doesn't up the minimum stake to a fiver!

[chris2475] 07/9/2010 10:38

Intersting morning, share price back up to approx what it was at the open, don't have volume data to hand but was this the MM's playing games or a genuine sell-off?
What are people's thoughts on the 5:1 share sub-division? I've only been investing for a couple of years and not had this happen to a company I hold as yet, so not sure what the outcome of this would be and whether it would be well-received by the markets? But it seems to make sense in principle, a share price of £3-4 would seem to make it more attractive to new shareholders? Could this attempt to improve liquidity be a precursor to a move to the main market?
Anyway, I'm more than happy to keep holding this one.
Cheers

[m.t.glass] 07/9/2010 10:34

GI -- no. Still following events there but nil stake now. I do still hold a March 2011 upbet on Abcam.

[greek islander] 07/9/2010 09:41

MTG
Are you still in Tanfield? ABCAM reaction this morning is prediictable especially with the market in the doldrums. Good results, very much as expected but the comment that will have impacted most, is the usual cautious one from the CEO which will have been responsible for the share price downturn.
ABCAM results usually follow the same pattern great results, caution from the management, share price weakness, then steady recovery for the share price once the figures and the divi rise have been digested.
This one just runs and runs and no really persuasive reason for it to slow down.............

[m.t.glass] 07/9/2010 07:25

antibody review article yesterday

[cambium] 06/9/2010 17:10

As easy as ABC

[chris2475] 05/9/2010 09:15

Hi
Just wondering if anyone has any thoughts on ABC's chart at the moment? I'm no expert chartist, but to me it looks like there's a bearish divergence forming on both MACD and momentum (actually already formed on the latter), so does anyone think we may be in for a "correction / sell-off" post results on Tues? Never know how much weight to give to the charts of AIM stock where the volumes and liquidity are low. All advice much appreciated. Cheers

[campbed] 31/8/2010 20:13

Interim results to 30 June due out in a week's time on 7th Sept.
SP almost at £16 -- quite amazing increase since its IPO five years ago.

[cambium] 02/8/2010 09:24

best looking chart imo

[chris2475] 01/8/2010 15:33

Cheers again richscotsman, interesting to note how much the sale of SERL would add to the share price My only concern was the general state of the markets, and that we may be in for a turbulent autumn (according to reports in IC). Without much else to go on in the short term, I thought SEA might therefore take a bit of a hammering? So it's maybe a bit high risk for me just now, but it's defintitely onto my watch list for once things settle down. Cheers, Chris

[richscotsman] 30/7/2010 16:13

M.T.Glass - thanks for this - just curious as last time I checked ABC would have made the FTSE 250 - not sure at what point ABC will reach the FTSE 100 threshold if it moved to the main market either...

In terms of the forthcoming results I will be curious to hear the outlook in terms of what they are planning to do with all the cash they must be sat on - still keeping an eye out for acquisitions/share buy back/big dividend?

Chris O/T - SEA - the sale of SERL has the potential to exceed the market cap but the process is running and is probably a couple of months away from conclusion. Rumours about their legacy oil and gas interests and realisation that they are way oversold seems to be the short term driver. At 30p it might be worth a look in that it gives you a free punt at the oil and gas RNS which may or may not happen whilst knowing that the SERL sale news should account for most if not all of your 30p, (if not a lot more as broker values at £1.21 and there are 20 notes of interest). DYOR but an asymetric risk reward profile if ever I saw one. Unfortunately for me my buy-in was 40p but I am holding tight with both hands.

ENK - update RNS today which suggests that financing of their flagship mine is likely to be complete by Christmas following forrestry permits in September. share price there has gone to sleep of late as everyone is bored senseless of waiting for financing to complete however the thing of interest to me is that whilst the world is not short of nickel, enk is low cost technology therefore has the potential to clean up even in a tight market. I have this one marked up as a ten bagger in 2 years but I always was an optimist! DYOR and best of luck.

[m.t.glass] 30/7/2010 08:11

rich - there's no size limit on AIM companies. The biggest ones are twice the size of ABC. They can choose to move to a mainmarket listing but don't have to if they don't want.

[chris2475] 30/7/2010 07:44

Morning richscotsman
Afraid I didn't get into SEA, and slightly gutted considering the rise... but knowing my luck had I bought then the share price would have just tanked! But an interesting company, like the fact that it's going to be a pure service provider. Couldn't quite work out the reason for the rise in the last few days.. pure speculation? And what's the time-frame do you think for my buying in, as it's now definitely on my watch-list? (you suggest Q3 and Q4 could be significant? sale of SERL?). Cheers for your help, and apologies to others for this being O/T.

[richscotsman] 29/7/2010 19:43

chris - sea c50% up since I tipped a couple of days ago - hope you got in!

Back to ABC.... bring on the results. Anyone on here know at what stage an AIM company has to become main market listed?

BAC

[chris2475] 26/7/2010 19:38

Nice one, will check them out, thanks again
Chris

[richscotsman] 26/7/2010 09:01

chris

no worries - I am long term here so have been lucky enough to have enjoyed the full width of the chart!

O/T - I diversified a little of my funds into enk and sea last year (the growth here has meant that my portfolio is too heavily weighted to abc) - both have been disappointing in terms of share price but have interesting developments forthcoming in q3 and q4 this year - make your own call but might be worth a bit of research.

cheers

Rich/BAC

[chris2475] 25/7/2010 10:52

Cheers richscotsman, knew I'd seen £15 somewhere so it must have been you on iii! That post certainly helped me with buying back in March so cheers for that. Happy to keep holding, the potential for growth still seems there, especially with the prospects for breaking into China that was mentioned in the interims back in March. It was just the high PE that was making me a tad jittery, but your comments are certainly reassuring, so cheers.

[richscotsman] 24/7/2010 14:43

Chris

I predicted £15 this year back in January on the iii board - I see no reason in the mid term that growth can not remain solid albeit you cant double forever - in the mean time if this doubles up another couple of times over the next 3-4 years I will be a happy man! The company growth has momentum which I see no reason to stall overnight.

Here's looking forward to reading the results!

BOLA

[chris2475] 23/7/2010 18:52

Hi, thanks for taking the time to post a reply, much appreciated. I'm happy to run with ABC for a while, I suppose my time frame is a few years if things keep going in the right direction. I'd been watching ASOS too, and thought about getting in when it was around 450, but was very new to investing then and put off then my the relatively high PE and that Investors Chronicle started putting sell recommendations on it - seeing what the share price is now, I wish I'd just followed my gut instinct on that one! So I feel that my stock screening is OK initially, but I'm still having trouble getting in at the right price, and also deciding when to sell once I'm in. But think I'll take your advice on this one and run Abcam a while longer, and review things again when the results are published in Sept. Cheers again for your help.

[campbed] 23/7/2010 09:29

chris2475 post 212

just wondered how much further you thought this might go?

If anyone knew this with any reliability then they wouldn't bother with Advfn BB.

I certainly don't have that knowledge and have been very pleasantly suprised by the speed that the share price of ABC has ramped up recently.

I think what happens in this sort of high growth situation is that there are only a few companies with an unblemished record which are seen as scaleable because sales are mainly through the web. Abcam is one, Asos is another. The small cap funds pile in: the company becomes in vogue until inevitably 50+% growth stumbles and the share price falls sharply even on quite a small stumble. My usual rule based on experience is to run these (few) big growth winners especially when there is no debt and only sell on definitely poor news.

As opposed to a pure growth situation like ABC, if it is a special situation (e.g. turnaround) then a top slicing approach may be more appropriate. But movements of a share price can surprise -- for example Music Box (MUBL) has reported growth of 20% PBT which was ahead of expectations and despite that the share price falls 10% in thin volume and the trailing PER falls to 3.5 with no permanent debt. In such a case it's down to your judgment

[cambium] 23/7/2010 08:57

depends on your timeframe and whether you are investing or dealing?

[chris2475] 23/7/2010 07:55

Hi all, am pretty new to this investing game, so would really appreciate any advice you may be able to give. Bought into Abcam in March at 1170, and so delighted with the recent gains. But the PE is now 43 so just wondered how much further you thought this might go? I remember at the time I bought reading on some BB that it was thought that £15 was a possibility, but we're now obviously there already. So do you think it may go even higher? The recent gains seem to be on decent volume which I'm taking as a good sign?
All advice much appreciated, cheers