By HotStockRockets | Saturday 13 August 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) has announced that its GoFigure® meal replacement shakes and natural snack bars products are now available for sale in UK stores of the Whole Foods Market Inc, a large ($15 billion turnover in 2015) American supermarket chain exclusively featuring healthy foods. That sounds big but in fact it means being on the shelves in just eight stores although Optibiotix says there are " opportunities for further expansion".
This is not going to transform the bottom line but we all have to start somewhere. It will be interesting to see what the sales data is and how the opportunities for expansion pan out.
Not surprisingly this has not driven the re-rate - the shares are now 72-76p. What will drive the re-rate is concrete news on the demerger of one business unit where the valuation is likely to be pretty close to the current market cap.
We expect news on that within weeks and as such as rate the shares a buy at up to 80p with a view to be selling at well over 100p once demerger news is out.
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