4basebio increased to 4.0%

4basebio AG (4BSB.D. Market Cap £90m, €2.03, 4.0% of JIC Portfolio)

On 29th July, I concluded that I was contemplating whether my “High Risk” rating should be reduced to Medium!

I have today, reduced it to Medium Risk from High, which means it is now Medium Risk/High Return. For me, that points to a 4.0% target weighting.

I think it justifies Medium Risk as the current share price of €2.03 compares to a book value of €2.20 of which €2.06 is cash.

Half-year results are tomorrow. Hopefully buying today will not look stupid when the German market opens tomorrow morning. However, given that it announced on 29th July that Spart AG intended to make a bid at €2 per share, I think it is well underpinned at this level.

I also hope, that as it is based in Cambridge and Madrid, that it will seek a UK listing at some stage.

I like that 4basebio has a “picks and shovels” approach. It is providing the tools to those who are taking the riskier route of drug discovery, where success is lucrative but alas, rare.

I paid €2.03 or 182.45p per share for 5,480 shares

The investor website is HERE

…and the product website is HERE


Screenshot 2020-08-12 at 12.28.58