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Re: zagdad post# 270

Friday, 10/01/2010 2:24:44 AM

Friday, October 01, 2010 2:24:44 AM

Post# of 406
AVNA stock doesn't look bad, they have sold all their other ventures to focus solely on Owlstone and to repay debt, they havn't filed any financial reports since December 2009 but now they are in a better position than before because they have sold assets to repay debt. Also I see that they have new office and more business. The only worry is when they will start to issue new shares, already from 2005 they issued 38,000,000 shares but all other metrics are very, very bullish. Owlstone R&D costed about $29,000,000 but in return we hold now shares of a company with superior quality products that are ready to market.
Government orders will keep coming so is private sector, even their jumbo competitors buy from them. They integrated all their assets into Owlstone a crown jewel and I believe in their future, this stock will impress when market will depress, they have no correlation to any stock index and in a bear market coming soon their business will improve. That's why I would advise buying AVNA slowly from $0.04 to accumulate shares at current prices which as well might go lower in case they issue new shares, total authorized shares are 200,000,000 and they will have to use it to raise money to continue their growth, this can press the stock down and anybody who likes AVNA can accumulate at lower prices.
If I had to guess the market cap in 10 years, I think $10,000,000 minimum and more, it all depends how much market they will get, how much they will start selling. Look at their current customers, it alone can be worth $10M in few years but if they sell more then stock can be worth even $50M in 10 years, it offers safety in a bear market, this is long term bet, it makes no sense to me to trade it at this valuation, from many stocks on this website AVNA is a platinum. $3M is very cheap no matter how bearish you are, besides what is better to buy: $3M or at $30M, I think it's better to buy for $3M, but as I said instead of hurry, accumulate slowly in case they issue new equity which can happen, then you can buy more for less $.

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