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If the take up flops, then will the company Spin something from that or just ignore the elephant in the room with no further comment accompanying the results?
Just had a director buy 50k at 36p
And boy, do we need one!
5k was a buy, in wrong column
Mmmm Net assets £41 mil, market cap £38.5 mil, is this a bargain or am I missing something?
Firstly - great name. I don’t think it’s a bargain unless they can raise the entire amount & push forward which seems less likely. The only thing we’re really missing is a proper explanation as to exactly how the original “expansion” failed and why those funds seem entirely wasted. Where is the value case now? Aren’t they now even further behind competitors?
Decent backing by directors though. 2 of them paid 45p each. Another bought 50k at 36p. Follow the insiders I say.
Plus some upside from short closing I would say.
ps, welcome smallcapper2, I see you joined today ;)
So, they trashed the share price with this Placing and Retail Offer. And for what? Let's have a look. Well, they raised a measly £3.25m in the placing (7.2m x £0.45) and, by my calculation, in the Retail Offer they raised the additional (princely) amount of £1,949.85 (4333 shares x £0.45). Nineteen hundred quid raised in the Retail Offer... I'm sure that'll take them far with their plans, jeez...
The whole exercise has been a rip-roaring success.
Notice the tech director did not take any, that on its own tells me something. Also 50k is small beer, the CEO & chair had to buy for credibility reasons. With cash available I cannot see them building and getting paying clients on a new regulated platform in the timeframe. They will also have cost pressures. This has turned from a company with potential to high risk punt
Unhooked, Yes I've just been trying to work out if the 'retail' offer was taken up? The RNS didn't say expressly if it was successful or not and just looking at the shares to be admitted it seemingly wasn't, so no surprise there. Not much director buying to convince me here either. Wishing the best to holders though.
Indeed they weren't explicit in the RNS about the Retail Offer take-up... this is Argentex after all!
But to get to the amount of 4333 shares sold in the Retail Offer, one just has to subtract the figure in the RNS of 3/5/24 from the figure in the RNS of 9/5/24. They're not kidding anyone!
Would this be worth it if the sp goes much lower than the offer price please those who are familar with this matter
It is certainly hard to be bullish when we are in the dark on so many things. Having listened to the vox interviews again, Judith McKenzie in January and Staveley in November, they both rate this guy Jim. Staveley picks his words very carefully but I think Harry Adams got this in a mess, and the results are poor due to his strategy. Also 2022 was a tough comparator, as there was much higher volatility in fx markets. This could be the basis of the strategy mistake.
Item 3 in their list is geographic expansion, which sounds achievable on the money they have. I thought this paragraph was encouraging:
During the year a new entity and office was set up in Dubai. It is expected that both Australia and Dubai will receive licences to operate during 2024. Revenues generated in the Netherlands for the year totalled £3.9m (9 months to December 2022: £1.6m). The Netherlands will be the central hub for our European operations and the licences granted in the Netherlands will allow the Group to open branches in the EU countries in the coming years.
What ever the previous strategy was, the admin expenses have grossly eaten in to the profit, and this needs to be un done ASAP (which is essentially item 1). Both fund managers had spoken to Jim, so AGFX is not secretive to everybody. Staveley says that these guys are not public markets guys - stating the obvious!.
I already had some of these prior to the drop, and it isnt an ideal situation, but this now has all the makings of a recovery stock. Problem removed (HA), new team in place, perhaps made a poor first impression, but so I will continue to hold.
Is a 1 bagger from here possible? I think so, that would put it back in historic PE multiple more aligned to sector peers. If nothing else I think this can recover somewhat, as it is technically and fundamentally over sold. A further update would make it much easier to buy a few more, ideally spend some cash on a broker note FFS.
The 36.8p buy today is very telling of the real supply and demand situation here.
Spot on, sadly. With a heavy heart - sold everything this morning! Their story simply makes no sense to me anymore.
Seems like they've had their shot at growth and blew it, without much explanation. The future isn't encouraging.
They now seem undercapitalized will have to fight for survival against competitors who already have the diverse product suite they're hoping to launch in 2025.
It's amazing how they've failed quite so spectacularly relative to Alpha, Equals etc - given AGFX seemingly a better brand and growth trajectory originally.
I think ALPH is worth a buy even at these elevated levels though now they're on the main market