A perfect turnabout for AVG: the company’s shares are up by 71% since 5 October

When, at the beginning of last February, the anti-virus-software company AVG Technologies first ventured onto the New York Stock Exchange, it was a disaster. Over the first trading day, the shares of the Dutch company with Czech background plunged by almost 19%. And more sinking was in store, interspersed with occasional slight recovery, but the overall trend remained firmly downwards. The bottom was hit on 5 October when an AVG share could be had at $9.43, i.e., 42% under the issue price. The IPO looked as a complete fiasco then.

At about that time, however, an acquirer emerged, which progressively gathered 2.7 million shares, or more than 5% of the company’s share capital. Its name was Wolf Fund Management. It had either had a formidable hunch, or access to information that very interesting things concerning AVG were about to happen.

The growth was further accelerated at the end of November, when the software manufacturer executed an agreement with Google, thus securing some very comfortable revenue for the two years to come. Other agreements followed – with Yahoo!, and also with the Czech Seznam.cz company. Apparently, AVG’s management identified new cash-generating opportunities. This was more than formidably reflected in the company’s securities: the shares have been up by 31% over the past month alone, to get over the $16 issue-price threshold at the end of last week.

AVG’s present market capitalisation amounts to $878m, and its future looks bright. The important date will be 27 February 2013, the company’s result-reporting date.

Translated by Lingvus

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