I've never used and probably will never use spread bets. Far too risky for me. However, if I was going to use a spread bet then I would be very tempted to take a risk on Angle's SP moving sharply upwards sometime next week. It's not the forthcoming AGM that I think will have a dramatic impact, but the persistent rumours of bid interest that have appeared in the Times. Last week was the second time that the newspaper reported rumours of takeover talk in the region of £2+ per share. In fact they specifically quoted a possible bid at £2.25. It seems inconceivable to me that there isn't any substance to these rumours, and surely it's only a matter of time before they have to come clean.
Long term investors, like me, are probably thinking along the same lines at the moment. That is to say, if anybody is willing to stump up over £2 a share for the company now, then what could it be worth in a year or two's time when the Parsortix device has CE and FDA approval and is being marketed for clinical sales? Sadly, given that the SP currently stands in the low 80s, I expect anybody bidding above £2 i.e. more than a 100% premium, is unlikely to be rebuffed by majority shareholders.
No advice is intended, but brave spread betters might fancy a punt on Angle tomorrow, although depending on what tomorrow brings, they might have already missed their opportunity. I'm not that brave and I'll stick with my long position, but it should be an interesting week.
Avesco should be in contact with shareholders in the not too distant future regarding the details of the special dividend payout (£1.10). Stripping this payment out leaves a current share price of £1.15 or fully diluted market cap. of just under £32m. This is cheap and a healthy discount to tangible net asset value. The Winter Olympics, Football World Cup and Commonwealth games should provide a very healthy boost to earnings during 2014 and, as mentioned many times in the past, this is a cash generative company where I believe dividends will probably rise to around 5p in 2014. Based on a share price of £1.15 (post Disney payout) this equates to a 4.3% dividend.
Also of interest, Avesco appear to have recently invested in new lightweight LED displays which appear to be having a major impact:-
http://www.ct-group.com/news/ct-introduces-worlds-lightest-full-resolution-led-system
"Commenting on the first shows to be completed in the US, Graham Andrews President CT North America and Asia Pacific, commented "The light weight, speed of deployment and image quality of this product has been incredible. We believe it will be a real game changer in how medium resolution LED can be applied to shows from the largest Corporate or Entertainment application to small displays in TV studios etc." "
"Dave Crump, CEO of Creative Technology in Europe and the Middle East added "getting this product to market has been a tough challenge, we have worked closely with the manufacturer to produce a hybrid version of their standard product which offers significant improvements in reliability and functionality, this has been done against some very tight deadlines. We look forward to seeing and sharing the results on some incredible projects in the coming months."
http://www.ct-group.com/news/cts-glux-carbon-10-led-system-redefines-event-environments-use
"CT and its partners already have access to over 1,000m2 of this product which we believe will have a major impact on the touring and live events industry. The ultra lightweight, speed of rigging and low operating cost mean productions with modest budgets can now incorporate spectacular moving screens. "
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