Is it too late to buy Avacta shares?

first_imgSimply click below to discover how you can take advantage of this. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Enter Your Email Address Image source: Getty Images Is it too late to buy Avacta shares? I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Sharescenter_img Rupert Hargreaves does not own any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. As the rest of the stock market crashed at the end of March, Avacta (LSE: AVCT) shares surged as investors rushed to buy part of this growth story. Indeed, since the beginning of the year, shares in the company have risen by more than 700%.And the company’s growth may be only just getting started.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Avacta shares: Positive newsflowAvacta shares took off at the beginning of April when the company announced that it had entered into an agreement with Cytiva. The two organisations agreed to work together to manufacture an “affimer-based point-of-care rapid test” for coronavirus.At the end of April, management provided a further update on this partnership. It informed investors the programme was running ahead of schedule, and Avacta was making good progress on the development of the test.The organisation also revealed it owned all of the intellectual property and commercial rights to the test. It was in discussions with several other global diagnostic companies to increase production.Since then, the company has announced further positive updates. The most recent of which was a distribution agreement with Medusa19 Limited for direct-to-consumer sales of a saliva-based rapid test for the Covid-19 antigen. Avacta shares reacted positively to this update. Clearly, the demand for these tests is high. Government’s around the world are pinning their hopes on mass testing regimes to get countries back to work after the coronavirus crisis. They’re going to need a massive and continuous supply of tests to do that.Avacta is just one of the hundreds of companies developing tests for this market.Other productsUnfortunately, it’s difficult to tell at this stage if the tests will produce a substantial earnings stream and help Avacta shares. The company has a big market, but many other corporations are competing for the same market share.But the coronavirus tests aren’t the only strings on Avacta’s bow. Last year, the biotherapeutics business signed several large agreements with significant partners.One of these was a therapeutics development partnership and licensing agreement with LG Chem Life Sciences. Management thinks this deal could generate potential revenues of up to $310m plus royalty payments on future product sales.However, despite these positive developments, the firm remains loss-making. This makes it challenging to value Avacta shares.Until we have some more clarity on future deals, as well as testing sales, it’s going to remain difficult to estimate how much the company should be worth.That said, it’s clear Avacta has enormous potential. As such, it might be worth snapping up a few shares to hold in your portfolio as a high-risk investment.Owning the company as part of a well-diversified portfolio would allow you to benefit from any potential upside while minimising risk. Rupert Hargreaves | Thursday, 21st May, 2020 | More on: AVCT “This Stock Could Be Like Buying Amazon in 1997” See all posts by Rupert Hargreaveslast_img read more