The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Very pertinent points Simms, and appreciate the analysis you've done there.............certainly make some valid points and may well be correct. The big question is what level will a placing be done at...........hopefully significantly above these levels. Either way, the RNS was positive
Simms - please rewatch the investor presentation
David Palumbo will not be placing any shares while there is such a discrepancy in MCAPs between EQT & similar competitors.
I'm pretty certain that there will be no placings until we reach what David sees as FV. Wherever that may be is anyone's guess, but I would hazard a guess that it's at least 80m - 150m in today's market
I have a holding but all i am saying is that Altair cant really convert their debt today of £1m to equity without making a bid offer as they would be over 30%. Therefore adding 10% interest we get to £1.1m due 31st June 2021. How will Altair keep their ownership under 30% to also allow EQTec to remove this debt obligation as rolling a 1 year bridging loan over every year is costly and not where you want to be investing cash. Therefore i suggest a likely way out is a 30% rights issue as that conveniently allows EQtec to raise more money and dilute Altair and hence allow them to convert the remaining debt to equity and stay under 30%. To me this seems most logical this year assuming .375p is achieved. of course for this rolling over of the debt we paid a further 10% fee or £95k just for the pleasure something the CEO would have liked not to have done surely as that is money out the window. The Riverfort debt stands at $1.8m and keeps 12.5% interest. again Eqtec paid a nice 10% fee just to roll this bridging loan and will pay a further 8% fee at the redemption. But its worth remember this text where
"If EQTEC closes a third-party fundraising prior to any of the repayment dates, 20 per cent. of the gross proceeds of such fundraising will be used to settle the relevant portion of the instalment of the Riverfort Loan due on the next repayment date" so Riverfort are recognising the likelihood of a right issue just as anyone would between now and the end of the year. With only £230k of cash that is a tiny amount in the pot and while money is coming in there is also a lot going out as investment in machinery is highly capital intensive and r&d will continue. Clearly the CEO is a lot better than before but you can see that the CEO will probably be eyeing a rights issue later in the year as clearly it is the simplest way for him to clear the decks of the previous management and probably give directors an option to buy in. i note directors have not bought in recently so it is just my opinion and hope to be proved wrong.
Totally agree sja.
Welcome & good luck to all new holders, safe to
Say you guys are getting in at bargain basement prices here!
Indeed stokey. Still that key customer dependance but not concerned at all by it.
By all accounts there really should be nothing holding these back now. With EQT, if the seller has finally gone then a jump up to a similar MCAP to PHE is on the cards.
Both companies are primed to do extremely well in their fields, but it’s safe to say EQT has a huge move in front of it just to arrive at the start line....
Agreed LB28, although tbf I think some of it has been instigated by the MMs playing around with the bid to print buys as sells and therefore spoke PIs into selling. Personally as a LTH, I was concerned about the funding deadline looming, however I believe it is a massive show of confidence in the business and David Palumbo in particular that the funders have supported the company in this way. Onwards and Upwards.
TheAnalyst In relation to your 11.24 I would remind you of this quote from the RNS that was issued in relation to the Peel option agreement. 'PowerHouse will, if Peel exercises the option, receive £500,000 as a one-off fee for granting Peel exclusive rights to develop the DMG® Technology in the UK.' So even without any operational DMG units on the exercise of the option PHE will receive £500,000 which would avoid in my opinion any need for a placing. So I do not think either company is in a better financial position than the other at the moment.
People selling on news perhaps? Traders trading for quick profits. I am going to stick with this one for a while though - much rather it went up slow and steady anyway.
Gspanner - share away! Also, I need to respond to your Friday post, will get round to it later today mate
Stoked - no disparaging comment intended. I also have both. I should have explained better, from both RNSs today my personal interpretation is that EQT are now beginning to generating revenues from multiple sources with PHE less so. I summarised that any delays in PHEs revenue would mean a Potential Q4 placement. Therefore I’m thinking EQT has the stronger cash position right now. Sorry For the confusion.
For the record, I’ve been in EQT for a couple of years & in PHE since December as I see the potential in both. Im delighted with the progress in PHE and see them as the benchmark for EQT.
I think at present they should have similar valuations.
TheAnalyst - In relation to your 10.45 post you may wish to read page 36 of PHE's last annual report again. They have no long term debt at all. Also if you read the RNS fom today thye have cash balances of £280,000. In which case I wonder how you come to the conclusion that PHE are in a worse position than EQT. Before you make any disparaging comments about me I have shares in both companies. PHE has confirmed orders with Peel Environmental that would bring in fees of £5.5m per annum.
TheAnalyst,
Another insightful post. Would you mind again if I copied this to advfn?
Thank you
Gsp
TheAnalyst,
Another insightful post. Would you mind again if I copied this to advfn?
Thank you
Gsp
Good to see the daily gains are holding, I had slightly given up on this investment but shows the difference a good CEO can make at the helm. I bought in at far too high an entry point but was always impressed with the tech bought got frustrated with the endless ramping from the old CEO. Let’s hope this keeps going and we reach our potential....
The upcoming loan dates.
People expected a placing & dilution here. This is no longer the case. We now have a clear pathway ahead from debt obligations.
Additionally, we have brought in north of 5 million already in the last 6 months & are forecasting to bring in significantly more, therefore we are currently operating self sufficiently.
Take any negativity with a pinch of salt, people have missed their entry & looking to get in cheaper.
PHE are now in a worse cash position than us.
EQT, if people hold tight, will rerate over the coming month, with contract news on the existing pipeline, especially Billingham, EQT should be in the MCAP range of 100-150m. Significantly higher with anymore large contracts