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A rather underwhelming RNS from Optibiotix - it is the demerger we want to hear about

By HotStockRockets | Tuesday 13 September 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.

The good news is that a 1.5 million share overhang in Optibiotix (OPTI) has now been cleared. So the shares should soar on good news. The bad news is that we have to wait a bit longer for that good news... Instead we get an RNS that was never going to set the share price on fire. Optibiotix has announced the results of a survey of customers of its GoFigure slimming shakes and bars. 30 lard buckets took part in the survey.

As such this cannot be seen as a truly scientific study. Having said all of that the results appear good. The data is

1. 100% of customers who used the products over a continued period lost weight (average 1.2kg weight loss per week, based on average reduction of 7-9 lbs over three weeks)
2. 100% of customers reported that using GoFigure® products led them to reduce food intake (typically by eating smaller food portions)
3. 93% of customers reported that using GoFigure products had led to reduced snacking
4. 83% of customers reported they felt less hungry when using the product

The cynics will say that since only 24% of those who had bought direct from the GoFigure website took part you are likely to have only the happiest punters playing ball. So while the data looks good you can understand why the shares did not race ahead on it - they are now 71p-72p.

What we all want is news of the demerger of one of Optibiotix's four divisions. That should drive a material re-rating. It is a pain waiting but wait we do as that re-rate will be big and the news should noit be that long in coming. The shares are a buy at up to 80p with a target to sell of 100p+

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