Griffin Speculators Investment Club
Axis Shield (ASD.L)
Why we bought the share
From Richard :
I would like to re-propose Axis-Shield. This has risen over 40%
since my original pitch in December (@ 527.5p now 747.5p) but I
believe there is much more to come.
As a reminder AS are a medical equipment company. Having been
awarded a US patent for its Carbohydrate Deficient Transferrin
(CDT) assay (for the diagnosis and follow-up care of heavy
alcohol drinkers) just prior to the December meeting they
subsequently received Marketing Approval early this month. The
market potential for this product is considered to be
`significant` and there is not thought to be any competition to
the patent-protected product.
The long awaited alliance with a major drug company, thought to
be Bayer AG, to market AS`s cardiovascular risk test, is still
eagerly anticipated and, depending on the terms, could cause
another jump in the share price.
The company`s Market Capitalisation is such that the widely
expected share increase to £8.50-9.00 in the next few weeks could
result in it being added to the FTSE250 index in March (content
of index reviewed quarterly) at which point the institutions will
sit up and take notice.
According to the digitallook website there are currently five
brokers reports on this company - 4 buys and 1 strong buy.
Tom Winnifrith (he of Red Hot Penny Shares, Show Me The Money and
UKinvest fame) has long championed these shares. He has just
added his `tip` to the UKinvest 2000 portfolio and yes it`s
Axis-Shield (@ £7.00).
To quote `...its lead products - diagnostic kits for coronary
problems - could be achieving multibillion-dollar sales revenues
within five years, earning a secure royalty stream for AS.
The company has an extensive portfolio of diagnostics under
development and I expect it to announce a stream of corporate
licensing and distribution deals as well as product approvals
over
the next 11 months. Warburg Dillon Read values this stock
at 900p a share, Nomura at close to £25. As the deals start
flowing these targets will be increased significantly.`
I believe this share has both short and medium term prospects but
that we should be holding for the longer term (2-3 years) as the
potential for growth is excellent.
Richard declares that he is a shareholder in this company.
And
since ...
Up £1 in less than a week.
STANDING DATA
N/A