By HotStockRockets | Sunday 17 January 2016
Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Optibiotix (OPTI) last week announced a potentially massive deal with Slimfast. But no-one seems to have noticed as the deal anounced is with KSF Acquisition Ltd. Investors appear to be saying KSF who?
The deal as announced by Optibiotix states:
"OptiBiotix has entered into a commercial agreement with KSF Acquisition UK Limited ('KSF). The agreement provides funding to assess the benefits of using Optibiotix's SlimBiome® weight management product alongside KSF's weight management dietary programme and provides KSF with an option to commercialise SlimBiome®. OptiBiotix's SlimBiome® contains ingredients clinically proven to reduce weight formulated by world experts to act at different parts of the body in three different ways to affect appetite, metabolism, and energy harvest.KSF's established brand with its scientifically proven weight management programme uses meal replacement products to support weight loss. "
Tests have shown that the Optibiotix microbe works for weight loss. Slimfast will now fund a further evaluation and on the basis of that can elect to add it to its products and its sales are vast. It is a major player in a market worth $622 billion in 2015. Just ponder the potential royalty stream for a minute or two.
The joy of Optibiotix is that this is just one of many products it has. We know that P&G has an option on another and the word on the street is that other deals are to be announced soon. We expect more big name news by the month end.
We tipped this at a 77p offer just after Christmas - the shares are now 76-77p. Given how the wider market has puked that is not bad going. But as investors wake up to just how big Slimfast could be and with more big ticket news imminent, the shares should start to race ahead soon. At up to 80p buy.
This material first appeared on Hot Stock Rockets - sorry its paying customers first. Hot Stock Rockets will be serving up its next red hot share tip ON WEDNESDAY 20th January. To access the UK’s fastest growing share tipping website for less than £5 a month ( or for £5 for one month) click HERE
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