Bioseek Share Discussion Threads

[aim_trader] 26/1/2011 12:55

Wednesday, January 26, 2011
Broker Spotlight: Daniel Stewart & Co names 'Top Picks' for 2011
Unlike many New Year's resolutions that are broken in a matter of days, London's top analysts are sticking their necks out and naming some of the stocks that they think will deliver all the way through the year.

Daniel Stewart Top Picks for 2011 are: Metminco, Peninsular Gold, Gulf Keystone Petroleum, Chariot Oil & Gas, Asterand, ReNeuron, Globo, Avanti Communications, Partygaming, Playtech, NEOVIA and Planet Payment.



Asterand (LON:ADT). Target price 30 pence (from 21 pence)
Analyst Vadim Alexandre raised his price target on the stock to 30 pence a share from 21 pence (current price 16 pence). He sees particular value being generated by last year's acquisition of BioSeek.
"The collaboration model works well for BioSeek given the significant intellectual property portfolio the company has developed around the BioMAP system and database," Alexandre says.
Deriving the new valuation, he says the group should be valued at a minimum of two times 2011 forecast sales. The hope is that Asterand is able to build on the progress made during 2010, when it landed a prestigious and valuable five-year contract with America's National Cancer Institute.
The base award is valued at US$5.4 million over 17 months, with provisions for renewal at the NCI's option," the analyst adds. "Not only is this contract expected to push Asterand back well into profitability, but it also further demonstrates the group's success at expanding its work with government institution

[spaceparallax] 26/1/2011 12:07

No I didn't - do you have it to hand?

[goofball25] 26/1/2011 11:18

I assume no one saw the reiteration of the 30p target from DS yesterday judging by the small sells

[rivaldo] 25/1/2011 15:04

Good to see the rise continuing steadily.

[goofball25] 24/1/2011 21:39

agreed, it felt like it was going to be pumped and dumped at one time today. this is not a trading stock, the spread is a killer.

[chrisb1103] 24/1/2011 17:28

Hmm can't see why people want to trade this. For most of the day the spread was crazy. Had sellers not given up stock we would have held much higher. My view is to let the real growth story emerge - Bloodbound put it more concisely earlier.

Still, we're now clearly on the radar, the positive coverage lately has been terrific. All we need now is a cracking statement and 20p will be well behind us imo. I'm quite loaded up already but if there is some consolidation around here it might be the last chance to add at these levels for any newcomers looking at this little ISA-ble gem.

[mandalsputin] 24/1/2011 11:06

further update.

[chrisb1103] 24/1/2011 10:28

Lovely indeed - thanks for the recent postings all. Everyone waking up to the potential here i see. Long way (up) to go yet!

[bloodhound] 24/1/2011 10:11

"AIM listed tissue science specialist."

Oh no, all those ATD's sitting in my ISA shouldn't really be there....;-)

A little more research me thinks Mr Balashov.

Another nice read though all the same.

Bh.

[mandalsputin] 24/1/2011 09:50

Asterand jumps 38.5% on FT share tip
Monday, January 24, 2011 by Sergei Balashov David Schwartz called Asetrand "just one tiddler that can prove very satisfying"
Shares in Asterand (LON:ATD) soared 38.5% in early deals on Monday after the stock market historian David Schwartz drew investors' attention to the opportunity presented by AIM listed tissue science specialist.

In his piece published by the Financial Times on Friday, Schwartz noted that since the stock market crash that wiped out 52% of the FTSE 100's value, small caps offered much better returns compared to large companies as whilst the FTSE 100 rose 22% during the recovery year that was 2009, the FTSE 250 index advanced 46% and the FTSE Fledgling index surged 74%.

Schwartz then explained that his favourite target was a "beaten-down tiddler that is ripe for a rebound" and as such he highlighted Asterand, which has recently revamped its strategy and achieved a major improvement on the financial side that went unnoticed by the market.

The article explained the share stagnation experienced by Asterand by the small losses the business posted in 2009, likely to be repeated in 2010 when the full year results are in.

However, a half on half analysis showed that Asterand posted a hefty loss in the second half of 2009, which proved to be its low point after the conclusion of a one-off contract, which also coincided with a general slowdown in the industry.

The 2010 results are expected to show a major improvement. According to the FT's estimates, the newly acquired predictive human biology specialist Bioseek will contribute US$2 million in revenues, in addition to a cost cutting programme that has saved the company US$1 million in expenses in the final four months of the year.

Schwartz is expecting to see a small profit in the second half of 2010 after Asterand managed to reduce pre-tax losses to US$1.6 million in H1.

The company quietly adjusted its strategy, reducing its reliance on the pharmaceutical majors, which were cutting their spending on contract research, opting to focus on US government work and the target diagnostics market instead.

Apparently, the strategy is working, which was confirmed by a prestigious contract with America's National Cancer Institute worth as much as US$24.3 million over five years, which was secured by Asterand in September 2010.

Just a little over a month ago, Proactive Investors noted that former Goldman Sachs (NYSE:GS) analyst Charles Elliott had taken a stake in Asterand.

The news that Elliott's firm Inflection Point (IP) now had a shareholding of over 4% in Asterand drove the pharmaceutical junior's shares up 16%.

However, even with all these signs pointing to growth, the investment opportunity went largely unnoticed and the potential of the business was hardly reflected in the share price, even after the appreciation that followed IP's taking a stake in Asterand.

Back then, Proactive Investors spoke to Asterand's chief executive Martyn Coombs in an effort to find out what the market missed about the stock that IP was able to see and capitalise on.

"What we found out is there's a quiet revolution taking place which should eventually prompt investors to re-appraise the valuation they currently ascribe to Asterand – which at less than one times sales is a fairly low one," said the report.

This came to pass today, with a little help from the FT's share tip.

[whyme] 24/1/2011 09:14

blast a bit of bad luck on my part the auto sell came in at 22p however I hope to pick it up again at 15p after the sellers have come in again (but I live in hope). If not good luck to the rest of you.

[bloodhound] 24/1/2011 09:08

Follow the story not the spike.

Bh.

[rivaldo] 24/1/2011 08:50

Yep. David Schwarz has a very sizeable following indeed. It also seems to me from past experience that whilst some of his followers bail fairly quickly if they make a profit, many seem to stay with their investments, since companies' share prices often stay very much higher than they were before they were featured by DS.

[curlylocks] 24/1/2011 08:13

Up 38% in the first 10 mins of trading - amazing! Is that all down to the article in the FT ?

[rivaldo] 23/1/2011 07:20

Excellent article in the FT. Yep, Monday will be extremely interesting :o))

There's still plenty of scope back up to 25p or more where ATD were trading only 18 months ago since ATD are a more advanced company now than they were then.

[mrangry2] 22/1/2011 09:09

Wow! Great article. David Schwartz no less. Thanks for that Mandalsputin. Should push things up on Monday.

[mandalsputin] 22/1/2011 08:46

tnx share price heres another.

[spaceparallax] 21/1/2011 12:10

well spotted

[mandalsputin] 20/1/2011 21:53

General Manager of US Operations

Company: Asterand, PLC
Location: 440 Burroughs - Tech One Suite 501
Detroit, MI 48202-3420
Website:
How to apply: Email Resume to: [e-mail]
Job Category: Management
Description:
Asterand is now seeking a GM to manage our Tissue Products business and world Headquarters in Detroit. This business currently employs over 50 people and generates annual revenues in excess of $10M. The GM will direct the day-to-day operations of the Detroit office and will be a key player in developing and driving the strategy, revenues and profitability of the company.

Requirements:
M.S. in life science field, MBA, or equivalent experience. PhD a plus.
Either: Senior level experience in general management (including day-to-day operations, responsibility for profit and loss and a track record in implementing change) with an ability to apply this experience to a life sciences business, * Or: A strong scientific background with some business experience and an aptitude to develop general management skills.

[bloodhound] 19/1/2011 15:48

I know we all know this, makes good reading though:

Martyn Coombs, Chief Executive Officer of Asterand commented:

"2010 has been a year of bedding down our acquisition of BioSeek, diversifying
our client base beyond large pharma and building our business with the
government. Through these efforts we've added significant diagnostic customers,
were awarded the NCI contract and expanded BioSeek's contract with the EPA. We
are encouraged by our revenues in Q3, particularly as we have not yet recognised
any revenue from our new contract with the NCI. Furthermore, our contract with
the NCI is a game changer that offers the possibility of a step change in the
business. These efforts set a sound foundation for our future growth."

Bh.

[spaceparallax] 19/1/2011 10:57

Certainly looking promising - I wonder if we have some news on the way?