The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
You're very welcome Mr T.
Well that *is* interesting. Thank you, Harry, I've learned something here today.
Morning Testudo
It's not being manipulated in the way that you think.
Someone is working an order through an Algo based trading program. Usually they're worked over the day as a percentage of total volume - say 20% of volume. So, if nothing is going on, it won't trade. If someone buys 10k (presuming today it's a sell order, then the Algo will trade 2k on the back of it. Of course that's a simplistic example, and obviously there are way more complex Algos running in the market that have nothing to do with the underlying individual stocks, and more to do with Index Futures and such like.
Also to note. Market Makers won't just sit there and buy scraps if it doesn't suit them. So they'll move price to buy cheaper ( create more margin) or to try find buyers at a lower level so they can get the two way business on.
If a stock ain't trading, the MMs don't make money.
Someone is toying with this share. Look at the share trades – dozens and dozens of sell trades over days, often only amounting to pence at a time, forcing the price down and the spread wider and wider. It's not retail doing it, because the dealing fees would kill whoever tried.
It's always traded very technically, this share, and by that indicator I'd anticipate it will fall to 9p again before its next bounce. If it does, then I expect it will get at least into the 20s. But if it is being manipulated, then how much higher will it be allowed to run? Fundamentally it is worth much, much more. It would be nice if a regulator were to investigate exactly what is going on here, but that is as ever a forlorn hope.
I was a national-newspaper journalist for many years; I suspect Chat GPT has emulated my writing style rather than the obverse. Perhaps a better strategy than to go public myself would be to seek royalties from OpenAI for basing its large-language models on my IP. Seems to have worked for Getty and the AI-image engines...
You're writing style has an AI quality about it.
Perhaps you should float yourse6on AIM - you could be the next big thing!
Kind regards
Harry
Can somebody advise me how i can prevent the rather annoying video "Investing Matters" from appearing everytime i am on this site. It is very difficult to read messages etc. on a moble phone when this video occupies a good percentage of the screen.
Yes, i too was wondering why he asked that
Thanks for your interest, Harry, but, no, I did not use Chat GPT. Slightly peculiar question though. May I ask why you ask?
Some intetesting points.
May I ask did you use Chat GPT to help write the piece?
Wise move, because that price was preposterous. I'm content with the size of my holding and won't add more but I haven't been shaken by recent prices either - this is a long-term hold for me. I also think you're right about China, Norfolkian. Speak to any market commentator with geopolitical insight and they say China is uninvestable. The friendshoring/nearshoring/onshoring paradigm has created an exodus of good companies out of China. Not least because China's intrusive recent Counter-Espionage Law essentially risks making criminals of all foreign nationals there. It's lunacy to continue operating from that part of the world because it is entirely incompatible with good corporate governance - reporting on what goes on in your Chinese factories/outlets has now effectively become a criminal offence!
I read your post last year about drone production and it certainly piqued my interest. Beneficial if it comes to play although it will impact the operation in China (which I think they will have to phase out in the coming years ). I’ve still been topping up over the past year at this ridiculously low price - last week it was at the same 6p price after the covid crash (and then went to 60p at tops).
Although light on details, we can read between the lines of that Trading Statement. On 20th January last year I posted the following on this board:
"...There could be a tremendous amount of growth around the corner for Carclo with just a little bit of a pivot in what it does. Carclo has been active in the aerospace sector for 100 years. Its specialism there is, inter alia, applying technical plastics to electronic components and aerofoil blading.
"Now consider this. The war in Ukraine has demonstrated one thing more than any other: the value of drones. Small, cheap drones and thousands of them. Currently these are sourced from China, which is hardly a reliable partner in a major defence-procurement exercise.
"I would guess that, through a tweak of its existing capabilities, Carclo could quickly be in a position to deliver cheaply mass-produced, British-made drones to the MoD and other NATO partners, whether directly or as commissioned by a major defence contractor.
"I am a humble retail investor with no inside knowledge whatsoever, but if management are not actively exploring this potential already, then they are letting shareholders down."
Now maybe I'm getting overexcited, but I see something in this when Carclo say in the Trading Statement: "The growth of our Aerospace division is sustained by our focus on specialist precision solutions that elevate our competitive position... Our advanced precision technology capitalizes on emerging opportunities in revitalizing markets, while easing supply chain constraints boosts our progress.
"Looking ahead, we are planning investments to diversify our product range at both operational sites. This initiative is designed to capitalise on evolving market dynamics within the aerospace industry, ensuring that Carclo stays at the forefront of technological advancements and market demand."
The fact that they have not explicitly said what these "evolving market dynamics" and "market demand" are does not dissuade me. In fact, this oblique reference reinforces my notion that this is to satisfy the enormous future military demand for drones. Because to openly state that Carclo is at the forefront of drone technology would be folly in the extreme, not least because it would make military targets of Carclo facilities in the event of a future war.
But this is very, very exciting to me. If I am right, then the £30m debt pile will be incidental. I believe that addressing this market (alongside Carclo's other interests, which similarly serve future market trends, e.g. the demongraphically driven medical sector) would see this share explode into the three figures in due course. I'm certainly holding up to 200p and beyond.
Personally I think the spread will tighten up when the Market Makers find some institutional business to supply the retail punters. Clearly by the move yesterday there wasn't any sellers down at these levels, apart from the odd scrap here and there. This is what happens when stocks get oversold and the MMs have had no appetite for any book risk.
Market Cap is still small ( yes that reflects inherent risks from the debt carried) however, I don't see any large sellers on the horizon anytime soon now that the bottom is in and the recovery is clearly on the turn.
Also, for one of many of the large industrial players, it would be peanuts to pick them up here and clear the debt..
Great RNS yesterday but lacking specific details leaving investors to fill in the gaps so to speak. Got a quote to buy just under 10p first thing but turned it down. As EoA says the debt is a significant downside here but it won't stop me buying as I am confident the sp will rise over time. Interestingly the sp held its gains yesterday and didn't retrace due to day traders selling into the rise. Another blue day Monday looks likely. ps. pity about the large spread
GLA
12.61 to sell. When the heaed see this they will flock in
Possible big buy order as actual bid keeps ticking up
Sorry apple. Just one more.
Bid up to 12.42 now
WOW
My low priced purchase from several years ago, suddenly taken off in a single day. Had not in recent times given the investment much thought. Hope it continues.
Mr. Calm 😀
13.5p paid. Going much higher
Bid rising
3xpecting that 20p sooner
13p paid.. actual bid is rising. This could do very well
Full ask 12.10p.paid