Applied Genetic Technologies Corporation (AGTC)

[veritas-twj]

Aiming4 - Thanks for your message on SOTK. Since my posting relating to AGTC on the LLEG message board was deleted at the request of Skunksyard, I sent the following information via email to another IHUB investor (so I am sharing the same information now with you below) -

***********************************************************

I will be requesting the AGTC 2006 Annual Financial Statements but they will not be ready for another 3 months. I can summarize my past findings as follows. The Company was spun off several years ago from a larger company, and management owns a large majority of the stock. There are only something like 10 or 12 mil shares outstanding and the float is really small, maybe 1 or 2 mil shares. I imagine nearly all of the float was from management's exercise of stock options over the years, and they then sold those few shares for cash. Management has rarely sold their core holdings and there is absolutely no dilution other than a few options. The Company has the extraordinary situation in that I think they are the only source of their product mined in the USA and maybe even in the world. The Company requires little working capital since there is only one mine and it is fully operational. Therefore, AGTC throws off so much excess cash that a majority is paid out in dividends each year to shareholders - and again most of the stock is owned by management so they get most of the dividends. A true Goose that lays Golden Eggs. Minimum cash dividends of 4 cents annually in bad years, and up to maybe 12 cents in good years. All for a price of $0.60-0.70/shr. No Catch-22. I intend to quietly try to increase my position this year to 100K shares from 25K currently if I can catch the timing right on the rare days when there is volume (a few days a year the trading volume is 10-50K shares, but usually zero). Recommend you do not chase the price higher but add slowly - buy and then pull back for a few weeks then buy again. Current Bid/Ask is $0.55-0.65, but no sales at the $0.55 bid. I purchased 2K shr last week at $0.61. You could buy up to 10K shr at $0.65 next week IMO, and then the market maker will move the offer up to $0.70 or $0.75. If that happens, just back off and wait a month or two, then go back when the Ask eases back down to $0.65.