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I feel your pain, but be patient. This will either re-rate during this year, be taken over or be taken private (I hope not the latter). The small market cap and low volumes does make it difficult for II. A duel Nasdaq listing would be good, but I’m not sure what hurdles need to be overcome for that.
Totally agree. I just hold them and wait...
Probably a hold but for better or worse I am holding what is a significant holding for the long term - been nothing but good news. With reg applications in, distribution centre approved in Ireland, new products in a growing market (my wife works in orthopeadics and says very much part of the future) as long as they control cost this will at some point fly imo but best of all unlike many aim shares I have not lost a nights sleep on this one - quite the opposite
Are shares actually a "hold" now? It would seem not. I can't be bothered as I'm at work everyday , but surely the way to make money now is to trade the highs.
I really cannot see the point of tying money up in growing companies when the sp doesn't grow with it.
On another note , if I were selling those 10k chunks , I think I would have two weeks ago at 70+p!
From those who watched the investor presentation...were there any particular insights that struck you?. ...(not sure if worth watching as read the report/have seen the last few presentations?). Thank you.
Will be at capacity in 2 years time if growth continues at 20%, current facilities can do $40m of revenues.
Hence talking about Phase 2 expansion in 2025 for cost of $4m, don't forget some of the costs where paid for in Phase 1 expansion already so Phase 2 is about getting more clean rooms operational.
Well Richard , I think we could ask for the success to be reflected in the share price! We were higher than this when loss making.
A takeover is unlikely in my opinion. The kind of product they are producing and the work involved is highly complex and given that they've not raised their prices they are still competitively priced and likely to be kept at arms length by those who don't understand what the company does.
I am also happy watching 20% growth pa tick by for a long time to come if they can manage it. In the earnings call they said that the current facilities can manage circa £40M of sales. So expansion isn't necessary at this point. Growth in sales, reducing costs and a well managed company (on AIM!) - can't ask for much more.
Actually from the companies point of view and its directors, the best outcome here would probably be a takeover by a big pharmaceutical company leaving the business to run as a stand alone subsidiary.
This would give Daniel and David access to all their capital requirements and open supply deal doors.
It would probably also be a good pay day for investors, especially if several suiters emerged.
Yes a fantastic achievement - they are not selling hot cross buns but high risk products without it seems any significant problems
Prefer steady as she goes - they are building something special
Agreed RN1MLT. It’s worth remembering that 20% growth pa is nothing to be sniffed at!
Past*
One of the reasons company is at this low valuation is quick expansion in the last...I would want this to be steady until the company sees enough orders to convince the shareholders that return on extra capital investments will be guaranteed in the near term.
Daniel and David are the slow and steady types. It’s taken three years to sort the company out and put it on the path for growth and profitability. Expansion will happen if they say it will, they’ve delivered on what they have promised so far.
They are also capable and clearly know what they are doing. However the company has achieved profitability for the first time, it will now have to do so again to show it’s not a one off. I think we’re in for a period of continued growth and improvement in the company. A few earnings calls ago, Daniel did say they could meet current demand using the existing facilities. I doubt they will do a share raise given the tremendous devaluing effect this has caused for the company in the the past. Using existing funds to grow or maybe a strategic partner is more likely in my view.
One thing is for sure, this is, finally, a company that we don’t have to lose sleep over!
@ShearClass , I had already been questioning director buys in my own mind.
Your next point is spot on. Why not raise and expand quicker?
Maybe they don't think the have enough orders yet?
Not sure , but it's a good point.
Two things would rapidly change the picture here;
- Material director buys - CEO/CFO both currently own pocket change vs their basic + bonus packages, this doesn't encourage new PI's to buy and hold
- Raising a decent amount of capital to strengthen the balance sheet and remove the debt overhang. The finance charges are punitive for a company that would otherwise be heading for genuine profitability. They quote $3.6 to $4m for the phase 2 expansion and say they can finance this from current cash & FCF, however this looks tight to me. I'm not sure why they seem so against raising growth capital for expansion? Is it purely down to the share price being below where they would consider raising?
It's a really nice growth story, but with such a weak balance sheet they are one problem away from a crisis. It's frustrating and typical of the UK market right now, can you imagine how different it would look with say $20m net cash on the balance sheet?
Just imagine if it was bad news.....ahhhh
Its simply a case of being patient, when enough investors see a good opportunity to invest here the SP will respond positively.
Todays news certainly helped that cause - the SP could take off at any time, probably when its least expected.
To me the covid pandemic on top of dilution has caused the company to take longer than expected to become profitable.
1. Markets are down generally
2. Before the last trading update in January, the shares were trading at 51p. Since then they've risen 30%. People who bought in then will have been taking profits.
3. The results only confirmed what was in the trading update, no positive surprises to galvanise buying.
4. The institutional shareholding is pretty static. This share will move when new PIs get interested, which won't be until they read positive news. Too early for that today.
As after the TU, I'd expect a gradual rise over the next couple of weeks, once short-term traders have taken their profits.
I can’t believe anyone is surprised, I posted yesterday what to expect🤔
I know me too it is just so frustrating - what more can they do. As they said on the call it will catch up as they keep on delivering
Am I missing something? Every RS from this company seems to be positive, especially this one. Why is the share price not soaring? Long-term holder here
They reiterated their guidance from last year. I thought they would upgrade it to 4x fwd sales, but they have left it at 120p. I missed the investors call but will look at a recording shortly.