Investing in biotech stocks - My experience so far

BrockStoker

BristolB said:

Hi BrockStoker. I think HL will not let allow any new buys or let anyone transfer shares to them. AJBell have said to me that once Euroclear kick off Amyris from their system, it will be very difficult to trade these shares, so I don't understand how HL will navigate around that.
However, I think there are a couple of options available. I was going to post this after I had clarified this with the following brokers early next week, but I will post it now what I have researched.
Any brokers that use Crest CDIs to hold international shares are no good. This includes majority of UK brokers the likes of HL, AJB, Halifax, Fidelity Int, iWeb etc.
Interactive Investors I believe don't use CDIs and deal directly in the local exchange (Nasdaq in this case), so that is a good option. But like I said I need this confirmed from them.
Others are Interactive Brokers, Degiro ( no ISA or SIPP) and possibly Charles Stanley.
I hope that helps.

Thanks for that BristolB. It looks like Interactive Investors it is then. Even if they turn out to not be suitable, it seems like it might not be a bad thing if they were stuck in a transfer for a month or two - I think there's a fair chance we will get good news by/in November that should lift the share price significantly.

Interactive Investors was actually my first choice when I looked for a platform initially back in 2019, but I went with i-WEB as Interactive Investors required a smart phone, which I did not have back then.

Once again thanks, and please let us know how you get on.

BristolB

sevenhills said:

I sold my AMRS after making a good profit last month. Their share price has been erratic, down at the moment. Is this new ruling big enough to affect the share price, just an issue in the UK?

This could indeed affect the share price negatively as Euroclear operates in several European countries, and their stance on this will apply throughout their organisation.
Having said that, this may affect retail more than institutional investors.
I wonder if this will make Amyris top brass take note and what will be their response if any.
I am still bullish and intend to hold term.....barring some yet unknown spanner thrown in the works.

Voyager2002

BristolB said:

Hi. I hold Amyris shares with AJ Bell and have been told that as Amyris will be removed from Euroclear CREST system because of their link to cannabis, I will have to sell them. Does anyone know any other UK broker I can transfer these to, as I will be crystallising a substantial loss on these shares if I have to sell. I guess all UK brokers use Euroclear CREST. Anybody have Amyris shares with other brokers and have been forced to sell ?

I hold AMRS with Fineco and have not heard anything about this issue.

BrockStoker

sevenhills said:

I sold my AMRS after making a good profit last month. Their share price has been erratic, down at the moment. Is this new ruling big enough to affect the share price, just an issue in the UK?

Well done for making a profit. Not easy in this climate. I'm not sure it will have a huge impact (AMRS has quite high institutional ownership last time I checked), but it surely is another bite taken out of it when the stock is struggling. I doubt it will affect the long term prospects of AMRS, but if there were more unexpected bad news on top I can imagine the risk level jumping.

BrockStoker

Voyager2002 said:

BristolB said:

Hi. I hold Amyris shares with AJ Bell and have been told that as Amyris will be removed from Euroclear CREST system because of their link to cannabis, I will have to sell them. Does anyone know any other UK broker I can transfer these to, as I will be crystallising a substantial loss on these shares if I have to sell. I guess all UK brokers use Euroclear CREST. Anybody have Amyris shares with other brokers and have been forced to sell ?

I hold AMRS with Fineco and have not heard anything about this issue.

Same issue here with i-WEB. I'm not sure what to make of it. Do we get told we have to sell at some point? If so when? They can't expect to tell us with a week/5 working days to spare, surely? Even 18 days, which is what we got with AJB is taking the.. IMO.

Or perhaps they have figured out a way to let us continue to hold.. but either way, I'm surprised to have not heard anything.

BrockStoker

BristolB said:

I wonder if this will make Amyris top brass take note and what will be their response if any.

I hope they are taking note. There must be significant investment through CREST, and AMRS could do with all the investment it can get right now I'm sure many would agree.

Like you I'm still very bullish and think Amyris will come through all of this fine, but I'm angry with CREST for having a backward mentality about this, and seemingly only caring about it's own reputation (at least I can't find any other reason for all of this), whilst barking orders at it's customers.

I don't see why they could not have given investors a bit more time before pulling the plug - 2 or 3 months would have been fair in order to give investors a chance to recoup losses from what is supposed to be a long term investment that was bought in good faith. I will at least be dropping an email to my solicitor if this episode results in significant financial loss for me.

BristolB

BrockStoker said:

Like you I'm still very bullish and think Amyris will come through all of this fine, but I'm angry with CREST for having a backward mentality about this, and seemingly only caring about it's own reputation (at least I can't find any other reason for all of this), whilst barking orders at it's customers. 

I don't see why they could not have given investors a bit more time before pulling the plug - 2 or 3 months would have been fair in order to give investors a chance to recoup losses from what is supposed to be a long term investment that was bought in good faith. I will at least be dropping an email to my solicitor if this episode results in significant financial loss for me.

Entirely agree BrockStoker. Its not that they are going be kind of sanctioned imminently or there is suddenly immediate impact on their reputation.
Euroclear's decision is barking mad when highest court in EU rules CBD is not narcotic.
I don't know how to post links, but google :

CBD is not a narcotic under EU law, highest court rules

BrockStoker

BristolB said:

BrockStoker said:

Like you I'm still very bullish and think Amyris will come through all of this fine, but I'm angry with CREST for having a backward mentality about this, and seemingly only caring about it's own reputation (at least I can't find any other reason for all of this), whilst barking orders at it's customers. 

I don't see why they could not have given investors a bit more time before pulling the plug - 2 or 3 months would have been fair in order to give investors a chance to recoup losses from what is supposed to be a long term investment that was bought in good faith. I will at least be dropping an email to my solicitor if this episode results in significant financial loss for me.

Entirely agree BrockStoker. Its not that they are going be kind of sanctioned imminently or there is suddenly immediate impact on their reputation.
Euroclear's decision is barking mad when highest court in EU rules CBD is not narcotic.
I don't know how to post links, but google :

CBD is not a narcotic under EU law, highest court rules

Yes, Amyris does not derive CBD from a plant, so technically it's synthetic, and therefore should be legal under EU law.

While it's not got to that stage yet, perhaps if it does, us AMRS investors could get together and pool our resources for a class action suit. I might be able to find some others who are affected on the AMRS Yahoo Groups message board - one person there at least said they were also affected, but I'm not sure if they are in the UK.

BrockStoker

ISA transfer from AJB to ii initiated. Still nothing heard from i-WEB so I guess they're not forcing investors to sell, which is a relief as I'd have to initiate transfers for two further ISAs.

BristolB

BrockStoker said:

ISA transfer from AJB to ii initiated. Still nothing heard from i-WEB so I guess they're not forcing investors to sell, which is a relief as I'd have to initiate transfers for two further ISAs.

In my case in specie transfer is probably not possible as my AJB sipp is crystallised funds and ii is uncrystalised funds. Managed to sell and buy around 60% of my holdings so far without incurring any charges at all (incl fx). For remaining 40% out of market now so hope Amyris takes dive before upcoming q3.

I find ii platform much better than AJB for US shares as you can use limit orders verses quotes by market makers with poor spreads.