Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
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Of course, not pretending this is a guarantee or anything like that but we have chances that other small caps simply don't and that counts for something. Mistakes can be made and still, fundamentally, the company is where it was before, the disappointment is that it hasn't kicked on. For others with debt and liabilities a mistake as big as choosing the wrong CEO will almost certainly be terminal.
And if a new CEO comes in after DA and he’s no good then we will then have millions for a newer newer ceo. And if that fails, we will have hundreds of thousands for the newer newerdy new ceo. And by then (2050) the next pandemic will be hitting us hard (but unfortunately we will be contending with 20 years of nuclear fallout from Putin).
Hey but 2100, I just know that this company can reach the dizzy heights of £1.20 a share by then.
GLA
I don't know B2HS2L, that would be my guess.It could also be that a sizeable amount of the cash is tied up because of the DHSC dispute and for now the focus is on improving operations in house before really attacking on the m&a front.
Having said that if you'd asked me six months or so ago where we'd be today I would not in a million years have predicted things would have got so miserable so quickly. I expected a lot more and thought we'd have seen M&A activity and would have announced a couple of reasonably sized contracts by now. So it's clear that I don't have a clue but the fact remains there is too much cash and potential for this investment to be written off as a failure - money talks, especially with the global outlook so bleak currently.
If revenue fails to pick up this year AND the cash pile starts dwindling then we are in a little trouble and will start to rely on winning the DHSC dispute but there's a lot that can still go right whilst we focus on the worst case scenarios.
HarChris -
All that being the case, - we are not hearing of that many M&A stories in 2022, which leads me to think larger pharma knows it's targets, but the time is not right to buy, wouldn't you agree?
Good results yes but exc cash they are valued at near 3x more than ncyt. When you include cash Ncyt's NAV £183m is 3x that of Yourgene £63m yet mcap is less than 2x.
It's not hard to see the potential rerate here when the bod finally sort out the future outlook. This is certainly a bottom drawer investment or a traders plaything.
It's definitely a combination of poor operational performance and the wider market uncertainty. In 'normal' times it would be extremely hard to find companies that are valued below their NAV besides special circumstances (almost always biotechs) but now I could name four or five straight off and there are plenty more than that.
The market, especially small cap Aim stocks, has become incredibly short term thinking. For now it's not looking any further than it's nose and if there's no positive catalysts immediately ahead, if there's any chance that the next bit of news good be negative think another poor trading update in a few month's time for example), then the share price falls further or stays deflated no matter the valuation.
In reality, despite the failure to kick on this year and prove that novacyt are ready to thrive post-covid (whilst still generating revs from covid), there is still enormous value here. We know this is a sector that is growing, we know medicine and testing is becoming ever more personalised and moving into the home, something ncyt are well prepared to take advantage of, we still have those links with the world's biggest NGOs etc Even if DA fails to turn it around we should still have tens of millions for a new CEO to come in and turn it around.
Obviously we are not down here at 105p because of the market alone and imo the bigger reason is the failure of management however all the time the cash in the bank remains high there is months and years to turn this ship around. All is not lost yet but it's sure been a painful journey up until now!
Do we not have service agreements with Yourgene?
This is the ncyt board, fyi
RNS'd good results?
Come on guys, at least read the annual report - it’s all in there:-
Going concern
Full payment of the remaining Long-Term Incentive Plan (“LTIP”) that commenced in November 2017 and vested in November 2020;
• Payment of the final earn-out milestone related to the IT-IS International acquisition;
AND
Notes to the Annual Accounts continued
3. Summary of accounting policies applied by the Group
Long-Term Incentive Plan
Novacyt granted to certain employees shares under a long-term management incentive plan adopted on 1 November 2017.
The exercise price is set at the share price on the grant date and the options will be settled in cash. The options fully vested on the third anniversary of the grant date, 1 November 2020. The payment expenses are calculated under IFRS 2 “Share-Based Payments”. The accounting charge has been spread across the vesting period to reflect the services received and a liability recognised in the statement of financial position. Payment of the second tranche was not made in November 2021 and has been delayed until 2022.
AND
32. Trade and other liabilities (£11.224m)
The other liabilities balance relates to the second and third tranches of the 2017 to 2020 LTIP scheme, which are forecast to be paid during 2022.
AND
35. Other liabilities long-term
The 2020 “other liabilities long-term” balance related to the third tranche of the 2017 to 2020 LTIP scheme that is due to be paid in November 2022 and has now moved to short-term liabilities as shown in note 32.
A mixture CS . The Sp was 2.10 just prior to war , tanked to 1.34 by first week of March , that was the biggest recent drop and then temp spike when Bio bought more and then crap market conditions and our amazing trading update with a hidden R& D update intertwined , mentioning numerous new tests but no inf and new partners but
again no inf , so very hard for any holder to have a scooby about what progress is being made.
"Do you not think the state of the market has contributed largely to the demise of the share price recently as well, or does being blinkered suit your agenda."
the most serious drop from 148p to 110p on the day of the RNS - Trading update and progress against strategy
the market clearly did not have much confidence in the future prospects so much so that it is now valuing the company at less than CAB
i agree that market is terrible and what it does is severely hinder any potential recovery. however the demise is fairly and squarely at the salad maister's door. you can bamboozle some people with salad but others will recognise it for what it is
My understanding was that you had to be employed by the company to receive LTIP.
Kaeren, where does it say the 2nd tranche wasn't paid? I may have missed something but reading the annual report the 2nd and 3rd tranches were due to be paid in 2022. The 4rd being due in November.
Hi byp..... Cash is king in.. a recessionary period ...... Not many companys with that balance +........ Most cash negative with increasing loan repayments.........
Intrest on 100 million is rising and rising.... Free collateral to pay wages..... Maybe 7% next year..... =.... Why spend it
Which LTIP are you talking about BYP ?
If it's Mullis's the second tranche wasn't paid. If it is the new LTIP then the SP has to be many multiples of here for the board to earn anything . I think we would have mutiny on the Bounty if the old LTIP was paid out of current bank balance !
I don't see that happening .
I not pretending anything. I said recent , I said contributed too.
I am well aware of the shortfalls of previous board members and indeed a couple of the current incumbents .
I have made clear my thoughts on lack of transparency , slow to market with LFTs, the fact I want to see M&A spend , my distrust of the chair etc. I have also stated I believe it will take time to transition and the current climate is doing nothing to assist. If I thought that there was no potential or better potential elsewhere I'd sell up , but I'd miss Pi100 so much !
DrB83……will the LTIP, stocks or taxes etc need to be paid out of that £99.6m cash ……or are you saying that it is entirely a float with no liabilities against any of it?
Kaeren…….yes the global market damaged the sp but the biggest falls were well before the global falls from Russia. Let’s not pretend that the main falls are largely due to the company boards incompetence.
Nothing to do with Kearen just a buoy making Wilson look like a d1ck
Oh oh, there’s gonna be more than 3 in 20 seconds!
3 recommends let me guess who they were the 3musketeers no doubt.
Hi pl100........ The market is setting price maybe with a slight help from biosynex selling no one is trading..... Have you seen nasdaq... Pressure down will be on in morning.... Disconnect from us markets is growing... Tomorrow is hike day....biosynex need to f off and novacyt board should inform shareholders of biosynex reason for purchase...maybe .....
they know..
Do you not think the state of the market has contributed largely to the demise of the share price recently as well, or does being blinkered suit your agenda. If I was you and I believed a tenth of what you post then you wouldnt see me for dust. Take your shares and sell them and put them somewhere where you believe the SP has potential to grow , there are thousands of opportunities out there. You elect to stay of your own free will , therefore either you don't believe the bull you write , you don't own or you need to have a serious word with someone , start with yourself. Why should the entire board have to listen to your crap everyday. Have the courage of your convinctions and sell . Do tell us where you decide to invest the proceeds of your imaginary shares.
Congrats on the new job with a 50 % rise , was thinking it must be a night shift judging by the times you post on here , be careful don't sleep on the job !