2 Further Reasons to add Versarien #VRS to your Watchlist - Vox Markets
Back

2 Further Reasons to add Versarien #VRS to your Watchlist

The content of this blog (or content associated with it) is not intended as investment advice. The author holds an interest in the company mentioned. Please do your own research.

Versarien #VRS
Share Price: 14.25p
Market Capitalisation: £18.7m

What Do They Do?

Versarien is an advanced engineering materials group. Leveraging proprietary technology, the Group creates innovative engineering solutions for its clients in a diverse range of industries. Versarien has five subsidiaries operating under two divisions:

Thermal and Hard Wear Products

Graphene and Plastics

To read my previous blog on Versarien click here

2 Further Reasons to add Versarien #VRS to your Watchlist

On 7th September, Versarien announced that:

“Its subsidiary, Total Carbide Ltd, has secured its largest ever single order in the aerospace sector for parts to be used by the UK’s largest aero engine manufacturer”

Whilst this order is obviously welcome, I feel it’s value to Versarien is far greater than the intial monetary amount stated.

I invested in Versarien for their work with one of the most exciting materials in existence today, graphene.

It’s been touted by many, as the wonder material that possesses the qualities to revoulutionise so many industries. One industry that is often featured at the top of the list, is the aerospace indsutry.

The order with the aerospace company had a total value of, “over £200,000″ but more importantly it is with, “one of the world’s leading airliners.”

This connection could be invaluable to Versarien.

At the moment, graphene development is slowly making its way from laboratory to commerciality. Certain industries are already using it in their products, whilst others see the benefits in theory but are yet to put it into practice.

This contract creates an excellent opportunity for Versarien, to explore the possibility with their new client of using their graphene in their products.

Neill Ricketts, CEO of Versarien, also commented:

“This has been a very busy period across Versarien as a whole and we are seeing record levels of enquires from potential purchasers of our products and users of our technology. We look forward to making further announcements in the coming weeks and months.”

Neill also revealed, on his Twitter account, he recently met with Continental. Continental is the world’s fourth-largest tyre manufacturer, a member of the DAX 30 (Germany’s equivalent of FTSE 100) who also manufacture brake systems, interior electronics, automotive safety, powertrain and chassis components. Continental is another company who could revolutionise their products by using graphene.

 

(click to enlage)

Versariens’s share price recently hit a 6 month low of 13.5p, thanks, in no small part, to Lombard Odier Asset Management.

On 2nd August 2016 Henderson Group held 26,526,996 or 22.83% of Versarien. You maybe thinking, what does this have to do with Lombard Odier Asset Management?

In November Lombard Odier Investment Managers acquired a $1 billion (£812 million) team from Henderson Global Investors subsidiary AlphaGen Capital.

Since this date Lombard Odier have been consistently selling down their holding and in their last TR-1 RNS, on 14th September, they revealed they now own 17,614,543 shares or 13.41%. This means they’ve sold around £1.5m worth of shares in the last year, the majority of these have been offloaded in the last 5 months. This has exerted tremendous downward pressure on the share price. When you consider Versarien’s market capitalisation is just £18.71m and their average daily volume turnover is approximatetly worth £50,000, £1.5m of sells is significant. Whenever there’s liquidity, or some buying, Lombard Odier sell into it.

I have no idea if Lombard Odier Asset Management intend to sell down more of their stake but I do know one thing, at these levels, or lower, once they stop selling a bounce will occur. Recently the relative strength of Versarien’s share price became oversold and bounced when the selling temporarily ceased, only to be beaten down again when more of Lombard’s shares hit the market.

ADDED ON 20TH SEPTEMBER 2017

To date – Lombard Odier have now down to 10.8%, which is close to £2m worth of shares.

 

Graphene as far as commerciality is concerned, is still in it’s infancy but Versarien are seeing, record levels of enquires from potential purchasers of our products”and a fair few of these enquiries seem to be with globally significant companies. If just one of these contract comes off then it could be truly tranformational for Versarien.

As for the share price, if Lombard Odier stop selling permanently and Versarien continue to do business as they have been doing, then I’d fully expect the share price to head back towards their previous highs and probably beyond.

To add Versarien #VRS to your Vox Markets Watchlist, click here and tap the, “Follow”, button.

The content of this blog (or content associated with it) is not intended as investment advice. The author holds an interest in the company mentioned. Please do your own research.

my-previous-blog-posts


To subscribe to my blog click here

 

Our, “£1,000 to £100,000 in 50 Trades of Less” Experiment

Our 3rd Trade in our, “£1,000 to £100,000 in 50 Trades or Less” Experiment

 

 

angs-small
To read my blog post on Angus Energy #ANGS click here

3 reason to add Angus Energy #ANGS to your Watchlist

 

ars-small
To read my blog post on Asiamet Resources #ARS click here

 

boom-small
To read my blog post on #audioBoom #BOOM click here

To read my updated blog on audioBoom including the iHeartMedia agreement click here

 

One Further Reason to Add Berkeley Energia to your Watchlist

3 reasons to add Berkeley Energia #BKY to your watchlist

 

3 Further Reasons to add Energiser Investments #ENGI to your Watchlist

2 Overlooked Companies, That Could Be About to Release Signficant News

 

 

evr-holdings-logo-small
To read my blog post on EVR Holdings #EVRH click here

To read my follow up article on #EVR Holdings click here

 

Another 3 reasons to add Harvest Minerals to your Watchlist

3 reasons to put Harvest Minerals on your Watchlist

 

 

One Further Reason to add Horizonte Minerals #HZM to your Watchlist

To read my blog on Horizonte Minerals click here

 

3 Reasons to add Hurricane Energy #HUR to your Watchlist

 

 


To read my blog post on Motif Bio click here

 

 

3 reasons to add Powerhouse Energy #PHE to your Watchlist

 

 

5 Reasons to put Savannah Petroeum #SAVP on your Watchlist

 

 

tlou-small
To read my blog post on #TLOU Energy click here

To read, “5 Reasons I bought more Shares in Tlou Energy This Week” click here

11 Quick Reasons to add Tlou Energy #TLOU to your Watchlist

 

 

4 Reasons to add Westminster Group #WSG to your Watchlist

5 More Reasons to add Westminster Group #WSG to your Watchlist

 

 

upl-small
To read my blog post on Upland Resources #UPL click here

To read my follow up article on Upland Resources: The Sensible and Sexy Asset Strategy, click here

2 Overlooked Companies, That Could Be About to Release Signficant News

 

 

3 reasons to add Utilitywise (UTW) to you watchlist

 

 

3 reasons to add Versarien to your Watchlist

 

 

yolo-small
One Further reason to add Yolo Leisure & Technology to your watchlist
To read my blog post on Yolo Leisure and Technology #YOLO click here
To read my blog post on Yolo’s Electric Jukebox Investment click here

Vox App Image
How to get company RNS releases sent straight to the front screen of your smartphone, as soon as they release them (for free) in 3 easy steps.

1. Download the Vox Markets app by clicking here (for either iPhone or Android).
2. Search for a company you want to receive the RNS’s from.
3. Click, “Follow” on that company’s page.

If you find this podcast useful please could you give it a 5 star rating and review on iTunes by clicking here and I’ll return the favour by giving you a mention on the podcast!

The content of this podcast (or content associated with it) is not intended as investment advice and people featured may hold positions in the companies they talk about. Please do your own research.

Mentioned in this post

VRS
Versarien