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Of course it always hurts when you see a price down on where it was a few weeks ago but we knew the raise was coming, it has been executed successfully at a higher price than would have been the case in November when it was confirmed to likely be happening by the end of the year.
GC always needed this capital, it was a success in that it wasn't too far below the market price at the time. I also noted that they managed to do it at the mid part of the announced range which should show something as to the appetite for it.
The move to AIM I just don't see as anything to be concerned about.
All that has changed is short term sentiment. (sentiment can be wrong or correct). If you think it is currently wrong like I do it is a good opportunity to buy a few more. If you think it is right and didn't like all the other recent updates that the market did at the time then it's time to sell. I think the fundamentals of the project are exceptional which is why I first bought in last June, when I took the time to really read up on the project.
Of course finance will not be a stroll in the park but I am confident it will be achieved. I don't think anyone with an average of over 7p has anything at all to be concerned about in the long term - just sit tight and hold.
Of course the only other reason to sell is if you are a skilled trader! I am not just trying to build up a long term holding.
I understand and get it!
as my previous comment rumbled i stated what they could have done differently was open to conjecture, I don't have the answers but I am just trying to rationalize the share retraction which seems to occur on 3 financial notifications only.
I wrestle with my emotions on this one, on one side I know the fundamentals are strong and believe in the company but like every other company, a market sentiment clearly dictates a companies prospects short or long term and I just believe that on the financial side we have been somewhat been found wanting a little, the share price moved positively on the project milestones news in the last year but retracted badly on all 3 announcements on the financial side.
Hi Hillview - we are all disappointed with the share price reaction - but unlike you I am not sure what could have been done better so i don't blame the management. They are not looking to trade the stock and are looking to create long term value. They needed cash to advance the project - they successfully raised that cash. The same goes for previous placings. Market sentiment and reaction should not form the basis of their actions. Having said that I agree the AIM decision should have had more rationale attributed to it - given it is the opposite to normal. I expect they want the flexibility for the production financing and AIM allows them to move more quickly. AIM itself is not a problem exchange - it is the low rent "entrepreneurs" which run many of the companies. They dont understand the concept of managing the company for other shareholders - but I think most holders here dont see our management team in that light - so there should be no problem with AIM. Reading between the lines, it looks like financing is proving harder than anticipated but what people who are selling are forgetting is that with the licences and permits in place we can get bought out by a larger company with the financing. They can start mine development immediately and this still gives us multiples of the share price. This is not my preferred outcome but a good plan B which should underpin the value in the share.
I'm undecided how I feel. I do think the placing and impending aim move hasn't been handled well, however at the time of writing, our assets are still as brilliant as they were a short while ago. I still believe a finance package will be forthcoming (which is why i'm substantially invested here), so I still hope for great things sp wise this year, all be it Q2 onwards. I really hope the BODs will learn from what's happened recently. I'm still adding btw.
Am I the only one looking at this this thinking great I can buy more at a great price. The BOD have done everything thy said they would. We were all expecting a placing and the reasons for going into AIM have all be made clear. Maybe I’m just an optimist but I wasn’t expecting any real rise in price until late 2nd quarter anyway!
I think even the most optimistic of investors could not envisage this share retraction, as I pointed out this is now lower than May 2020. the milestone progress has been exemplary on the project itself, but I'm afraid the same cannot be said re the 2 share dilution placings and the announcement of joining the AIM. All 3 have been met with disappointment and surprise on pricing and timings which are all important to gain traction on its share price. The current buy price at 5.40p whether we like it or not is sadly a reflection of the above decision making, what they could have done differently I am sure is open to conjecture but to say disappointed is an understatement with a holding of 2.1 million shares.
So test pack . Your final assessment is that we will sit around this price for some time ?
I did read your previous posts and you did call the placing quite accurately . On the basis of that accuracy would you have prediction of the future at EML ?
Many investors misunderstand a 'tree shake', and quote it as the reason behind any drop in sp. It is normally used by MM's to fill a large buy order. They want shares, so drop the price, often a substantial drop, to 'scare' some investors into selling. The sp for EML has been consistently dropping for a month now, and is not so much a 'shake' as a felling of the tree.
If there are no malign reasons for the move to AIM ( AIM is less regulated than the main market, and PDMR's suffer less consequences for 'dishonesty'), then there is no concern. I believe the drop is 're-aligning' with the recent offer, and the prospect of no 'material' news for some time. When all the 'ducks are lined up', I would have thought that Project Finance was no obstacle. The fact that we were given guidance that PF would be delivered Q1 this year, and then a finance advisor appointed to resolve the issue, makes me think all is not going to plan on this front.
Oh, and BTW, anyone any ideas on what the 'jolly' to Dubai was about in the middle of a pandemic when people were advised not to fly?
Yes, a bit of a tree shake I suspect - we know there are a lot of II’s who want to buy in. Not expecting much newsflow over the next couple of weeks so good opportunity to force the price down now, but the share price should rally quite nicely as we enter the second quarter and approach the key milestone period. We might need to get past the aim listing towards the end of April (which I think some retail investors misunderstood) before things start to pick up properly.
the share price was higher in May 2020 before permit news/salt news. The AIM call has def spooked a few.
Did anybody else expect this to drop below the placing price ?
I was expecting after the raise for it to get back to 6p . This is my biggest holding so I’m slightly concerned.