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WANdisco - Placing to raise £16.3m

January 2018

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • WAND
  • Price:
  • 570p
WANdisco has placed 2.97m new shares (7.8% of the equity) at 550p to raise £16.3m before costs. Directors including David Richards and Yeturu Aahlad have also sold 1.04m shares at the same price. Earlier in the month, WANdisco signed an OEM agreement with Virtustream, Dell’s cloud business. Virtustream will sell Fusion as an embedded replication solution for hybrid cloud - so essentially this replicates the IBM deal where IBM sells Fusion embedded in IBM Big Replicate. The contract is for an initial  three years and has a minimum committed value of US$3.5m with fixed royalty payments.Having suggested topslicing at close to the peak at c.£8, it’s time to buy back. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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