Biotech Growth Share Discussion Threads

[strollingmolby] 08/4/2013 11:16

Whilst the issue of equity does mean there are more share in issue, and shareholders subsequently hold a little less of the company than prior to the issue, the money has been raised at a premium to NAV and therefore benefits all shareholders. The proceeds are then invested into various biotech stocks when the manager deems the time is right and everyone is happy. ITs would never issue shares at a discount to NAV as this would dilute existing holders - so only at a premium, which is the holy grail!

[affemoose] 08/4/2013 10:57

A good point indeed.

I am unsure of this is a release of new equity OR the release of equity from treasury.

Either way - I assume the proceeds are used to buy new investment stock, thus should be neutral in terms of NAV per share.

i do however, hate assumptions. thus ergo to-whit, i shall email their PR people. if I get an answer I shall post it up.

[caltonhill] 06/4/2013 07:27

On BradJeff's point - does this "issue of equity" not dilute our holdings ? - hence yesterdays 2.5 % fall? Who gets the proceeds of sale?

[kinbasket] 27/3/2013 10:25

Or even better, BB biotech with a 20% discount and 10 times the market cap. :-)

[davebowler] 27/3/2013 10:05

This is still at a premium unlike IBT -at a 17% discount to NAV.

[davebowler] 14/3/2013 13:57

IBT is on a 17% discount to NAV

[bradjeff] 14/3/2013 13:45

help the aged:

What is the frequent 'issue of Equity' announcements being made?

is this stock being held in treasury? if so - what drives its release?

[yiyack3] 25/2/2013 09:50

Don't know why you guys are selling - price is going up in line with the NAV.

[sawadee3] 21/2/2013 08:47

Banked :-)

[arja] 20/2/2013 16:26

YIjack3 - sounds Ok but it is still very risky . What happens if you have been accumulating stock for a while and hence in a PAPER profit situation but then a bad announcement makes the share price plunge . But this will not happen with an investment trust unless the DOW crashed .

[damanko] 19/2/2013 13:28

Ditto, perhaps time for somebody to start a new thread..........

[davebowler] 19/1/2013 22:20

Just found it -

[davebowler] 19/1/2013 22:18

Yes but its not quantified here-

[1066monkey] 19/1/2013 20:49

Doesn't IBT set aside part of its portfolio for unlisted companies?

[davebowler] 17/1/2013 13:40

BIOG is at a 1% premium whereas IBT (similar) is at a 16% discount.

[yiyack3] 16/1/2013 23:01

What's your problem Flips? Can't read too well, or tunnel vision?
I was simply exchanging opinions with Monk about an AIM listed biotech investment trust.
If you have something to say about BIOG why not say it instead of whinging.

[flips] 16/1/2013 09:13

yiyack
Surely this is a thread aobut an investment Trust, Biotech Growth. It is largely invested in Us stocks. Why do you keep talking about AIM?

[yiyack3] 15/1/2013 22:19

Over on the sharecrazy.com site there's wise old guy, Malcolm Stacey. With AIM shares like this he advises making a small initial investment - say £300. If it goes up, buy more. If it goes down 10% or more, sell with only a small loss.
Buy your winners, sell the losers, and with high risk shares keep the risk under control.
Sounds good to me and the only way I will get involved with AIM shares.

[1066monkey] 15/1/2013 11:11

Yeah, the 3 year is a bit of a slow motion car crash. The thing that's attractive is the nav is almost 10p but the market can definitely remain irrational longer than I can remain solvent.

[yiyack3] 14/1/2013 23:24

Monk, good luck if you do, but look at the chart, I wouldn't touch it with yours.

[1066monkey] 14/1/2013 16:17

Yiyack3

Haha...You might be right but this one is run by Jim Mellon who wrote Cracking the Code and has some expertise in biotech stock picking. He's worth several hundred million so I suspect that he's not in it for the money.

Appreciate where you're coming from though.

[yiyack3] 14/1/2013 00:50

In my experience many AIM companies are pretty well worthless, run by a CEO and a crony or two who like the good life, first class on expenses, get rich as quick as poss and don't worry when the company runs out of cash, goes bust and all the shareholders lose their investments. If an AIM company gets to be popular on the ADVFN and other bulletin boards, do what you can to hitch a ride on rising share price, then take profits and get out. Don't ever believe the story behind an AIM market share

[1066monkey] 13/1/2013 11:16

Any of you have any thoughts about PEBI? I'm tempted because of the discount to its NAV but at the same time I'm concerned that might persist or even widen. One of the nice things about BIOG is the deviation from NAV isn't that great.