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Yeah, it's about now that they will have the provisional H1 numbers, ready for formal release next month. Also build up of container ships at China likely to see iodine price increase further. Or it may be something else....
Nice to see somebody directing a decent wad into IOF.
Not the sexiest of companies, but looking solid nevertheless and looking better than ever before, while the price is dirt cheap.
https://simplywall.st/stocks/gb/materials/aim-iof/iofina-shares#future
Ok, then please show us your calculations that show a share price around 30p? what are the margins for such products? Where is the evidence profit will increase by a lot?
I don't think iofina makes profits only from iodine production. I think most of the revenues come from iodine processing, so you can buy it-process it-and resell it.
I waited 3 weeks to reply to beatrice1428 to see if the market would help her case. it did not. I have no idea how one arrives at the 30p price target posted. THere are no calculations to back it up.
Iofina:
- produces 500-600MT year, sells for $35s/MT. Revenue is about $30M, because some of its products have more value added.
- EBIDTA $5M
But it needs to build a plant every two years to keep production steady perhaps with an increment of 10% of annual production... so that costs $3M.
So, how can what is left (after interest expenses, etc.) support a 30p valuation, Beatrice1428?
ATB
I waited 3 weeks to reply to beatrice1428 to see if the market would help her case. it did not. I have no idea how one arrives at the 30p price target posted. THere are no calculations to back it up.
Iofina:
- produces 500-600MT year, sells for $35s/MT. Revenue is about $30M, because some of its products have more value added.
- EBIDTA $5M
But it needs to build a plant every two years to keep production steady perhaps with an increment of 10% of annual production... so that costs $3M.
So, how can what is left (after interest expenses, etc.) support a 30p valuation, Beatrice1428?
ATB
Good luck with that then ;)
With increasing profits and cash flow, it would be nice to see a dividend strategy, to start to return value to shareholders. Something like 30% of free cash flow, with the rest reinvested for growth. I think it would bring some stability to the currently ebbing and flowing shareholder base, and in turn some stability to the share price.
On the expected profit for this year we should be trading far higher than this, but there seems no coherent strategy to increase shareholder satisfaction.
I will continue holding and trading, but would rather just leave my holding to grow as I do with most of my portfolio.
I agree, but can’t help feeling the only way long standing shareholders will get their money out is with a takeover bid. That, or, changes at the top at the next AGM
To be fair, the company is in the best shape that it's ever been in and the price is now lower. That's the argument.
For sure, it will never ignite too much passion. It's just not the sector to do that. It's obtuse to say the least. But it's a solid company nevertheless and it produces an economically important, albeit niche chemical products. At such a tiny valuation, it has to be attractive to another chemicals company, e.g. Elementis.
Devil's advocate, I see the same old seller back again, offloading the 25k share tranches. It's difficult to see any sustained rise until he departs.
iofina knows that it is convenient to increase production and has also stated it, however iofina is not only a producer of iodine like other companies that produce more mt but also deals with the processing of it in various specific chemical substances on request for various markets (markets in increase), this allows it to have another type of profit margin compared to those who extract the raw material. is a company that is not afraid to invest to grow and has significantly decreased its debt since 2019. the statements of the ced have always been in line with the facts until now. counting that as I wrote below many companies at the price of 1 euro do not even earn 30p is the minimum for iofina
"the truth is that this stock would be undervalued even at 30p."
If that is the case tell us your calculations. You can read my earlier posts on IOF. They will allow you to see that it is not quite like that. The production level is low, they had unsold stocks of final product at YE, and always need to build new facilities to keep production constant. So, Operational cash flow is meaningless. You have to subtact CAPEX to keep producton stable.
So, 30p? Not quite.
ATB
the market hasn't seen it yet
but why?
The main problem that I see here is that it's off-radar.
As a buyout target, I would have thought it would be of interest to one of the speciality chemical companies, e.g. Elementis.
the truth is that this stock would be undervalued even at 30p
I couldn't agree with you more. The share price is hugely undervalued. I'm just hoping nobody tries to come in with a cheeky bid whilst we are so under valued.
this stock is undervalued, there are stocks that are not even earning and are above the euro, this has been in profit for a year and a half now
I bought this morning at 12.50, so I assume all sells at that price are in fact buys. Bad news in that the sp is lower than quoted, good news in that investors are buying.