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I don’t think JW can do anymore
Most likely JW will have them on VOX to boost morale sooner rather than later.
Normally does with his holdings..
...kind of worried we are going down quite a bit now, as ppl who have ridden up the wave take profits before they loose any more of them. SP will come back, but it may be a longer haul now. IMO. Need Justin W to do some more promo!
How have you calculated the cash burn? A quick glance through their report re: operating loss:
"Group operating loss increased by 7.5% to £6.4m (2019: £5.9m). The extraordinary circumstances brought about by COVID-19 in 2020 means that there are several significant items in the 2020 result which might be considered one-off and it is therefore difficult to draw a meaningful comparison from underlying performance alone."
And cash burn rate:
"In July 2020, the Company raised £4.0m (net of expenses) through a placing, open offer, share subscription and convertible loan note issue. Hence, total cash used during the year was £3.5m. EBITDA losses absorbed approximately £1.5m whilst working capital movements released £0.6m. We expect this to reduce in future as the benefit of deferred rent and taxes is caught up. Hence the net cash used in operations was restricted to £0.9m."
I can see where you're coming from, but I think you have to read the whole document and find answers there . It looks like you've oversimplified the figures a bit too much.
I guess - like everyone says - if you don't understand the company there's no rush. Take a bit more time to get your head around it and make the right decision for you.
I think £35 million valuation is pretty on the money. Grown a heck of a lot in the past year but got to prove the demand (and therefore revenue) is there.
Yep agree! That is why they won’t make money spouting rubbish about 20p is laughable that boat sailed ages ago!
Here not hear!
Interesting to hear from the geniuses hear who turned it down at 10p and now think it’s worth 20p just about ??
Some lacking in very basic account principles and valuation methodologies
Sorry, typo and error in my cash burn calculation. I mixed up the 2.2m and 3.3m, should have read:
Cash at year end: £2.7m
Cash burn 12m = 2.7-2.2-4.0 = -£3.5m
Cash end March =3.3m, so maybe they can stretch for nearly 12m without raising more money, actually.
Cash has gone up by £0.5m since Dec presumably because they raised money in January and maybe also have drawn down the convertible loan facility.
And, yes, of course I am bearish because I want to get in, in that I would buy if the price was lower. Long term, seems like a decent business, but looks very overvalued just now. I would buy at 20p, probably.
£3.3M as of last month! Are you bearish because you would like to get in?! Still pretty cheap here!
To achieve what they have during covid was outstanding imo, they are well ahead of their initial intentions for total amount of sites opened, It doesn’t take a lot of thought to see where ESC is going from here. Onwards and upwards.
I'm still bearish on this. Operating loss of £6.4m overall. Looks like they only had about 6months of cash left at year end, then £1m convertible loan post-year end, so presumably they'll need to do a new fund raise soon?
Cash at year end: £2.7m
Cash burn 12m = 2.7-3.3.-4.0 = -£4.6m
Even during lockdown making money. Only way is up.