The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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For an armchair investor like me, this type of company is exactly what ISAs are for. In now, next to other speculative efforts, then check back later. Fundamentally good in the long term I’m sure, short term not fun enough for the day traders out there!
Good luck and may your patience never wear thin.
Worth a watch, maybe a bit more concise.
https://www.youtube.com/watch?v=XISX0v54wig
ATB
AJP
Interesting presentation - nothing really added to the RNS, but an honest appraisal as to where we are.
In response to a question and if I heard Laura correctly, the 'lost' merchandiser was not a direct customer, but an intermediary supplying two of our customers.
JS also intimated that these 'lost customers' will have to replace ITX formulations with ones which are petroleum-based. So if they have an eco-conscience, may be all is not lost and they may return to the ITX fold at some time in the near future.
Long presentation and a lot of questions. So here is my honest take on today and whether now is the right time to invest or not.
Positives:
1. The company clearly justified its decision and reasoning regarding its largest customer. Feels like the door is still open there.
2. Really liked all the graphics. They illustrated gross margins of 72% in hygiene and 63% in beauty which are very impressive.
3. Clear explanation on super absorbents and the company are 100% right to get the product right first. It has to match or be superior to existing products to justify the premium.
4. Glad they are going to be pushing investment in Itaconix outside the U.K. I noticed there are listings for Itaconix in France (18GO.F) and Germany (18GO.SG and 18GO.DU).
5. Overall the company is doing all the right things.
Negatives
1. Unless the company wins back their largest customer of 2023 revenues for 2024 will be lower than 2023. We all know why that it but the market will focus on cold hard numbers.
2. As a result of point 1 the next trading update for 2024 H1 will be underwhelming (unless it does a deal with its largest customer).
3. As was repeatedly said break even and all numbers have shifted back 12 months.
My overall conclusion therefore is that the company is a good long term investment. I’m just not convinced that now is the time to invest. I am worried that there will be share price drift until the next really positive RNS. So I’m going to maintain a watchful wait for when best to reinvest.
So my final question re: issuing RNS for new 1st diversification wins --> mgt expect to issue one in next few months - great! I expect this is a "leather" based channel since its always been one of the first in the list for textual updates and also in the last RNS majors on this.
The leather area seems to be the closest major diversification channel 24/25/26 so for John to articulate in such a granular fashion I'm guessing orders are now very close indeed and Im suspecting was a key trade-off consideration for the loss of lower profitability detergent customer. He keeps waving his tan shoes everywhere but lets see the stilettos now!
John said that negotiations are still ongoing with lost customer which is interesting and a potential upside that could easily come back.
Discussions with North American customer 'ongoing'.
So they've not gone away completely then. It's just a stand-off... for now.
Gross Margin up to 31% is very impressive. All cashed up as well, This looks a lot better than some of my other investments for sure.
It will be very interesting to see how quickly the freed up capacity is used up - a real gauge of how Itaconix and its products are regarded by the chemical market.
John has been saying for a while now that he expects Itaconic to become a large company - a bounce back this trading year will go a long way to validating that claim.
Canaccord Genuity has published a new research note on:
Itaconix plc.
Please click on the below title to see the full release:
FY results: strong cash flow.
Anyone who has an account to view this and can summarise please?
Interesting that we had revenue shown for Bio Asterix in 2022 but none in 2023, if someone could ask for clarification on this during the presentation that would be helpful, I will be at work.
Agree though, very upbeat and positive.
Looking good.
'Our balance sheet now gives us freedom to drive revenue growth from our current ingredients, the opportunity for us to develop new ingredients, and the ability to grow revenues from our itaconate technology platform.'
ATB
It looks like an extremely good set of results and a very promising outlook.
Hopefully we can replace the North American low margin customer quickly, although it wouldn't surprise me if they came back to the table. Negotiating takes all sorts.
Looking forward to the presentation later.
Agreed SI, looks like they traded off one weak profit contract in pursuit of upsides elsewhere. Will be good to see later today during management meet me call with Q &A
It was the outlook part of the statement that interested me. Hopefully we will get more insight this afternoon:
“We are pursuing growth from other existing customers and from new accounts with a view to replenishing this revised expectation with higher margin revenues.
“Our balance sheet provides us with new opportunities to target higher revenue growth. There are many exciting opportunities for us to develop new ingredients and increase revenues and we are positioning ourselves to better capture the commercial value of our performance ingredients with new customer wins, new volumes in non-detergent uses, and important new product development initiatives.”
Yes that would be good. Speak to you then
Ok shall we make it 1pm then instead
I'll be able to message at 1pm, but that's fine, will just keep the chat room open. Speak to you then, hopefully it works :)
Have asked what has become of the BR300 polymer for hairstyling.Originally touted for release in 2022.
Hi JM, how about 12 noon tomorrow. Monday?
I m missing Porky and his boundless optimism , if your listening porky , I still have my "golden tickets", although even the most optimistic of us sometimes wonder if we get them out of that bottom draw we put them in , wil they have turned into sh*T sandwiches ? not long now , good luck to you all
Random message for Elsol, apologies for cross post as its regarding another share but didn't want to post in there. Its regarding your links to UKHSA, I'm a small private investor also in the company that are working with them. Could you meet me in the room posted here so I can discuss a proposal with you? I don't want to put any of my contact information on here, if you could reply initially by message on here the time you will reply on the link so I know its you. Thanks https://y99.in/r/1623213
Was trying to buy several times yesterday , the most that was offered was 100 shares. Ended putting an order in which eventually got filled. Roll on Monday