By HotStockRockets | Thursday 17 August 2017
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.
Thanks for all the emails on Optibiotix (OPTI). We understand seeing the shares slide back to 53p odd is alarming. To one or two of you, there is no need for such language! To the rest of you here goes.
It is August and volumes in most small caps are thin. Most sensible folks are sitting on a beach. But there has been one persistent seller who has been belting out round number parcels for a few days. He/she is not big enough to be a notifiable holder but that has hit the shares. You then throw in some folk who are bored with a lack of news and then others who are just panicking and selling as the share price slide means something must be wrong. It is not, it is just that seller and the bored punters.
We expect a raft of announcements within weeks including ones with real names you have heard of and ones that show real revenues being generated. There is no balance sheet issue here to worry about and the company is in great shape.
You cannot say if the seller is done and if we are at a low but we know the shares are cheap. And thus for the first time in a couple of years FIML - the company owned by Tom Winnifrith's family's trusts - which already owns vast numbers of Optibiotix shares has gone into the market and bought more.
The stance is VERY STRONG BUY and we still see these shares being 100p+ far sooner than most folks think...
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