Omega Diagnostics (ODX)

[WickedLester]

There's been a couple of snippets of news out of these recently which seem quite positive.

https://www.investegate.co.uk/omega-dia ... 00061199R/

Firstly they have signed Heads of Terms to sell CD4 for a significant upfront payment (hopefully that means at least £1m) and an ongoing royalty stream (subject to successful due diligence).

https://www.investegate.co.uk/omega-dia ... 00059314R/

Secondly they have received the money they were owed by Abingdon Health (I think that was about £800k but i'm not sure).

It looks like they'll soon have the cash they need to keep in business and Food and Nutrition has always been profitable and is imo worth twice the share price at least, more if they can successfully grow it in China and the USA.

I bought more a while ago and will probably spend some dividends on more shares next week.

[WickedLester]

ODX have announced the sale of CD4 today and I have to say I'm very pleased with the price assuming they get all of the money.

https://www.investegate.co.uk/omega-dia ... 00066907U/

It is £1.1m upfront, up to a further £4m based on the outcome of a clinical study in Kenya which should be received later in the year and up to a further £1m in royalties over the next few years. In total up to £6.1m

If they get all of the cash in that will leave them trading at about net cash with the profitable Health and Nutrition business in the price for free.

I still think the intrinsic value of these shares if they get all of that consideration is anything from £25m-£40m and will buy more when I get some dividends.

On the downside management have messed up so badly and so many times that they must surely be in the last chance saloon. If I had a choice I'd like them to sell the lot and return the cash to shareholders but that's not happening at the moment.