The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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One of the main advantages to EQT is that not only do they have R&D pilot plant to try new feed stocks they have an operating facility with audited performance. In the interview released yesterday DP states that the plant operates for 7.5k to 8.5k hours per year. Thats 85-97% operational. Just shows how much data they have and how reliable the gasification technology is.
This is not a pilot plant but a fully operational facility. Next step is to build a 10-25Mw municipal waste plant as a show case for that sector.
I wonder if they have looked at PPAs for municipal waste as there will be a reduced gate fee from this due to the higher efficiency of the gasification process. If they can sell the energy back to an end user such as a data centre then this can offset the difference someway bybl charging a slightly higher rate for the energy over the grid payment which allows for transmission but less to the customer than they would pay for energy from the distributor.
I am sure DP has already looked at this. Maybe I havent picked it up being more focused on financial closure in its entirety.
Great business model and I think they are putting in a lot of ground work.
Dear Rouley,
Please be assured I didn’t suspect you were critical of the EQT management.
I have pretty much the same investment strategy; bought a somewhat crazy amount at the beginning of the year because I couldn’t see why this remained so undervalued with the new management team and strategy... Other than the ‘stale bull’ argument which befalls so many AIM companies, typically just before they come good. So this has done well since then but still a very long way to go if they can execute the plan during these troubled times. I remain very ‘overweight’!
Can buy 500000 at 48900 and sell at 49000
Yes. I agree. It is sometimes a difficult task to see the wood for the trees.
@gspanner, for clarity I was in no way having a dig at the present Eqtec management, I only invested earlier this year once DP was at the helm and making the right moves. I do feel for those of you who've been in this for a while and had to endure the ups and downs of the last few years, however I do believe from here on out, at this level it has to be a good buy. I don't trade, I look at the business, the sector, the team running it, product, pipeline, revenue, etc. Personally I think the negative sentiment from the last couple of years has created incredible value here and hence why I also have plenty of skin in the game. Best not to hang off the short term fluctuations and look at the bigger picture. Best of luck everyone.
Cant believe we are back down to these levels this week has been sh*te
And further slippage all-round today.
Energy and commodities stocks not doing their job. I have a two ISA'S I can utilise yet before April 2021. Bring it on Market Makers pulling the price on zero volume you dirty barstewards.
Staying clear and trying not to pay attention. But this is now an absolute fooking bargain.
Rouley,
Sorry, I would add I have an infinite greater respect for the management team at EQT... ITM are run by buffoons, the Linde man on the board must be pulling his/her hair out by now! And fwiw I have plenty of skin in the game here because of the potential.
Rouley,
Completely agree, and I assume that is the while purpose of the Wood collaboration. The only other way to prove viability /potential is to get more of the systems built and commissioned; but I suspect a collaboration with Wood/others would be quicker.
I want the ground to be broken!
ITM’s collaboration with Shell was not really the sp rise catalyst though was it, more the tie up with Linde (and equity stake). Did better investment wise though 13p to £1 or so but still only 1/3 of what could have been....
The market wants corporate validation in an emerging sector. ITM has a collaboration with Shell = £1Bn market cap, bugger all revenue yet. PHE has Peel as a partner for 11 sites = £100m market cap, bugger all revenue yet. EQT need something with Cobra, Wood, whoever, to validate the business and product commercially and then the investors will come. Irrelevant at the moment that EQT has the better product, some revenue, bigger pipeline, it needs validation...plus the market still has a hangover from previous leadership teams. For reference I bought ITM in 2015 at 23p and sold at about 28p 7-8 months later as I was impatient that things weren’t happening....hmmm...
Patience all-round at the moment. Here, VDTK, AFC, SAE and the biggest mistake i made was PHE. Avoided for years but bought in on the hype from the last placing. Wish I hadn't. Beginning to wonder if I made a mistake. It was a hedge against EQT. I dont care what anyone says, I just don't see them as advanced as EQT in respect to commercialising the product. Time will tell.
Small amount of cash left and reluctant to use it. Have held off buying here but volume is decreasing and SP drop has slowed. Maybe its a good time to add and forget about it for a few months. Billingham or Aries claim closure could arrive and this price will be gone. Next year, when things are under control a little more EQT are going to be busy. But I am with you, the wait on everything is painful. I am just not a trader, just a very frustrated and unhappy investor.
Best of luck all. This will turn around. EQT look like a great company with a strong future.
So eqt is wildly undervalued compared to similar businesses, but our share price is yet to correct itself. Surely the catalyst cant be far away?
When I last checked EQT had £10m in the bank, projected sales for 2021 of around £40m, proven technology, and near term profitable (projected within 2022), commercial tenders for H1 returned over €200m and growing into H2 2020.
Now look at ITM annual results
FY2020 Financials:
· Transition year with revenues and EBITDA adversely affected by COVID-19, Brexit and the adoption of IFRS 15
· Total Revenue & Project Grant Funding of £5.4m (2019: £17.5m) down 69%, comprising:
o Sales revenue: £3.3m (2019: £4.6m) down 28%
o Collaborative grant income recognised: £2.1m (2019: £12.9m) down 84%
· Loss from operations £29.4m (2019: £9.3m),
· Adjusted EBITDA loss (see note 7) £18.1m (2019: loss £7.3m), increased 148%
· Available cash balance of £39.9m at year-end (2019: £5.2m)
Sales revenue not too dissimilar to EQT, cash balance is 4 x EQT, pipeline is less than EQT by approx 50% and an annual loss of £29m suggests that they are not even close to profit.
Now for the good bit
EQT MCap is £34m vs ITM MCal £1.2bn
That is 30 x that of EQT