By Malcolm Stacey | Friday 8 September 2017
Disclosure: I own shares in one or more of the stocks mentioned. 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.
Hello, Share Twiddlers. At the famous UK Investor Show on April 1st, the legendary pizza hardman, Darren Atwater, tipped Versarien (VRS). We later chatted about one of this company’s products, graphene, which is the revolutionary material which attracted Darren’s interest.
There are top scientists working on using graphene in the workings of computers. If this process succeeds, Versarien will become a very hot share indeed. But we are not there yet and after a huge leap in its share price, just after the show, there has been a slow decay in value.
However, graphene is not the only string to the bow of this diverse firm. Another is making bits and pieces for aeroplanes. And this week comes the welcome news that Versarien has secured a big contract to supply parts for ‘the UK's largest aero engine manufacturer’.
No word who this is. But the order, worth more than £200,000, is for engine components destined for ‘one of the world’s biggest airliners’.
Despite the fact that I had lost 25% of my investment until yesterday, when the share price rose 13%, I love niche companies like this. It is pioneering exciting advances in engineering on many fronts. It’s not hard to see at least one of them - perhaps the graphene arm - coming up trumps.
It’s not made a profit in recent history. The P/E is negative. But that doesn’t matter so much when you have a company so focused on a brighter technological future. To secure such a juicy contract as the one just announced shows a huge measure of confidence by the customer.
And this could be a share which really shoots off, depending on what it can develop in the fields of graphene, hard modern materials, inks and many other products aimed at improving existing ways of doing things, including in the gas and oil industries. And therefore Darren may be hailed as the best tipster at the next UK Investor Show in Westminster next spring.
And now it’s time to sample some more traditional products in the Punter’s Return.
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