Optibiotix Health Share Discussion Threads

[john henry] 31/3/2017 08:30

And the balance sheet is reflected in the share price.

[elrico] 31/3/2017 08:24

Marnewton - The way I see the link between OPTI & SKIN and the correlation is this; If SKIN were to remain wholly owned by OPTI and it became commercially successful it would be reflected positively on OPTI's balance sheet and add value to OPTI market valuation. Post IPO OPTI will retain a 42% interest in OPTI; should SKIN likewise become commercially successful, "Of course the 'true' value of SKIN will be reflected on OPTI's balance sheet;" Surely it must follow a similar impact on OPTI market value would follow, be it on a smaller scale. I am not suggesting for every 2p gain SKIN makes OPTI gains 1p like a tracker fund would behave.

[marnewton] 31/3/2017 08:03

Can't say I agree elrico:

'OPTI's share price will be linked to any successful commercialization, and will of course have a direct correlation the the SKIN share price'

In my view there'll be no 'direct correlation', any link will be very loose.

Of course the 'true' value of SKIN will be reflected on OPTI's balance sheet.

Which is what I was trying to get across last night.

M

[judijudi] 31/3/2017 07:31

Interesting few days ahead for Optis sp
Little or no shares available in Skinbio on Weds
Only guaranteed way of an interest is via Opti

[elrico] 31/3/2017 00:05

The SKIN valuation was first mooted at the end of the UKI presentation last april. The valuation is based on a number of caveats, which include and I quote, "if we successfully fully exploit all the opportunities offered by the IP to reflect the early nature of the opportunity and the challenges of taking products to regulated markets." The quote is not from the interview but a recent discussion. We cannot simply BOLT-ON OPTI's share of SKIN on to it's market value. Similarly, if SKIN's IPO is valued at 10m we cannot just shave 10m off OPTI's market value. OPTI's share price will be linked to any successful commercialization, and will of course have a direct correlation the the SKIN share price, which is part of the logic in demerging, as well as the eventual release of a special divi, thus OPTI holder benefit in two direct ways without the need to buy SKIN in the market.

[jestercat2] 30/3/2017 19:26

Thanks Cumbrian2 - we will indeed see on Wednesday - looking forward to it.

[someuwin] 30/3/2017 19:25

One thing to note is that the SKIN IPO is on 5th April, but the new tax year starts on 6th April. So anyone wanting to put SKIN in their 2017/18 ISA will have to wait 24 hours.

[cumbrian2] 30/3/2017 19:20

Jestercat - my view is that a doubling of the SKIN IPO price will add approx 10p to OPTI share price - guess we will find out next Wed.

[jestercat2] 30/3/2017 19:17

Thanks Cumbrian and Marnewton - slightly conflicting answers, but I think you are both saying that the overall OPTI market cap will vary according to SKIN SP, but that the two SPs will act independently from each other and anyway with the gearing between the two, even a doubling of the SKIN share price would have very little direct impact on the OPTI share price

Have I got that right?

[marnewton] 30/3/2017 19:14

Yep...but it won't necessarily be reflected in OPTI's share-price.

M

[branboyd1] 30/3/2017 19:10

Stephen O'Hara has stated in the past that SKIN could potentially be valued at £250m which would give OPTI's 41.9% a valuation of £105m

[marnewton] 30/3/2017 19:10

There'll be no direct link between SKIN and OPTI share-prices.

An analogy would be the way investment trusts, for instance, trade at a discount (sometimes substantial) to the sum of their parts.

Or the way asset strippers work.

M

[cumbrian2] 30/3/2017 19:00

Jestercat 2. the two shares will obviously linked but any increase in SKIN will see a smaller increase in OPTI. If skin is valued at IPO price 10million and doubles to be worth 20 million then this is theory will add 10 million to OPTI share price. With OPTI M Cap currently 65 million this would relate to approx 15% o3 12p increase in OPTI. So if you believe that SKIN will double then you are better investing directly (if you can get them!). Hope that helps.

[someuwin] 30/3/2017 18:56

...We don't know the ticker yet.

[branboyd1] 30/3/2017 18:55

someuwin thanks for the link. What's the ticker for skin?

[jestercat2] 30/3/2017 18:50

Will the OPTI share price price be (in some way) pegged to the SKIN share price price, given that OPTI owns a large % of SKIN. If SKIN rises will OPTI automatically rise or are the two SPs totally decoupled and purely affected by buying/selling ratios in each (and the usual machinations of the MMs of course)?

[someuwin] 30/3/2017 18:46

Of course SKIN shares will be tradable at 8 am. You may have to phone through to your broker though, often online platforms don't recognise the new ticker straight away.

"Expected first date of trading: 05/04/2017"

[branboyd1] 30/3/2017 18:39

Will shares be available to buy at 8 am on Wednesday? I'm tempted to email Catherine O'Neill as I don't see why we can't have confirmation before the IPO date.

[parob] 30/3/2017 18:19

The skin float itself should draw in new investors to OPTI, providing it's a success, and that's looking very likely!

[branboyd1] 30/3/2017 18:09

If Skin rockets on Wednesday, what are the chances OPTI will too?

[elrico] 30/3/2017 16:08

I give him no credit. A cursory glance at the "Michalemouse school of investing" thread should offer a clue as to how a view him...comedy value and we all need to laugh more :)

[1bokke] 30/3/2017 16:01

Elrico me thinks you are giving the fool on the other thread too much credit.. :)

[elrico] 30/3/2017 15:48

Diablo - net fee's I would expect SKIN will have the fat end of 4.1m left. I won't comment of the rest of the post as it verges of TW/SP trolling and I think we have all had enough of this BS from the clown on the other thread, who has gone remarkably quiet, no doubt realising he got it all wrong......yet again.

[diablo26261] 30/3/2017 15:39

Glad to see a tiny bit of reality setting in (though still a bit more to come)on the Skin spin off - given the hefty fees charged for this type of thing (doing a fund raise on a private company currently) there was no way they would take on the cost and admin of opening it beyond the normal insiders and a few invitees.

Expect TW will get his nose in that trough via Reynolds as arch rampers to keep the right side of are valuable for new Aim issues. Will be interesting to see what is also handed out as sweeteners (pun there for you).

Be thankful you have a shareholding via Opti.

[lukead] 30/3/2017 15:38

i can't either, possibly you will only be allowed a tiny amount and if it goes up early doors from whatever price it starts off on, they may well bring it down again, who knows