Synairgen - where are we now with the one Covid play I liked reviews Peter Brailey

BREAKING: Powerhouse Energy Polish deal – this is a spoof, its partner has just £100 to its name. Read from Tom Winnifrith, The Sheriff of AIM, HERE

Is it just me or is the rest of the world moving incredibly quickly while I put up with the second lockdown. Or as I refer to it “mockdown” – with my children still going to school and interacting with half the local villages and towns. Not only does The Donald win / lose / win??? again (if one accepts some the US news feeds), we now have a vaccine for Covid. Apparently. I’m sure the infrastructure to distribute and store a product that requires -80 degrees is well within the capabilities of our fearsome leaders to sort – after all distributing and storing PPE (like masks) is far more difficult and they did that without any problem I recall. So where does that leave me in my thinking for Synairgen (SNG)?

New video from Horse Hill campaigners threatened by impecunious corporate bullies at UK Oil & Gas HERE

Firstly, let me be clear – I had a stop loss declared when I last wrote about the company only a few weeks back at 130p. It triggered and I was out for most of my holding (but below the stop price which is always irritating). Tom Winnifrith commented in Bearcast the other day about the “Covid Testing companies” – led by the likes of Novacyt (NCYT), which he explored in more detail and how he could not see much revenue and hence value in the longer term. In many ways I concur with this view – the market cap looked and remains outrageous to me also. Synairgen has never been about testing – it’s about a treatment and in that respect is clearly differentiated to the other Covid plays on the AIM casino. In my view, the need of a treatment is not changed by the news of the vaccine. One only has to think about winter flu – vaccines have been available for many years against the flu virus, but hospitals still tend to fill each winter and people need effective treatments.

One in the eye for global chavs as Burberry promises to cut discounting. Chris Bailey writes HERE

All the issues related to vaccine safety checks and the practical difficulties of availability and distributing and administering a vaccine remain to be resolved. I rather suspect the billions of pounds poured into research will lead to more vaccine options and that will solve some of the issues I currently see. But it is clear to me that a significant percentage of the UK population have little faith left in the government of the day, even where that faith was clear at the start of the year. I think the matter of trust in the vaccine and some of the people who articulate influential views will be a significant hurdle to be overcome. I watch with interest as this plays out. I put the stop to protect against an unforeseen event and that occurred. I would note it is only by exception I use a stop given how volatile the AIM market can be. Meanwhile, the company has the cash to move the development of its SNG001 treatment forward. Will it progress through current trials successfully? I do not know, but I still like the risk to return I perceive, even if the chances of ever hitting my £5 or £10 per share hopes is likely removed for good! Of course Tom Winnifrith never bought into this view so does that make him right? Or do we need to see matters play out before a final judgement is made? I think we need to wait for now.

Read from Nigel Somerville HERE: Golden Prospect Precious Metals – what if……

So where does that leave me? Simple really. I have repurchased, but remain of the view this investment remains a gamble. It’s one I am happy to take but would note I likely have confirmation bias having originally purchased and made significant profits prior to mentioning this share.

TT Electronics – trading update, where now on the covid bandwagon? Reviewed HERE

Filed under: Synairgen, Powerhouse Energy, UK Oil & Gas, Burberry, Golden Prospect, TT Electronics

2020-11-12 14:45:07

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