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Yes and no doubt they want in cheap hence the overdone drop…I’m buying another 200k this week just don’t see this drop lasting much longer.
Surely it is up to Cenkos to broke the story to their clients and find buyers for the shares?!
part of Cenkos note issued in May, when mcap was £40m+ ..a bit more 'sum of the parts valuation' for anyone interested.....
''CAP-XX got an extraordinary deal buying the production assets for A$600k as Murata had no other option than to sell the assets due to CAP-XX’s IP and could not afford to upset its large customer by just closing the business. The deal effectively makes CAP-XX a monopoly supplier in small thin prismatic supercapacitors and the conversion of Murata customers to CAP-XX should be transformational for CAP-XX.
Sufficient cash to profitability with buffer..
CAP-XX has no debt and following the receipt of a A$3.1m R&D rebate in January 2021, we believe it has sufficient cash headroom to reach profitability on our expectations with some buffer should the conversion of Murata customers be slower than anticipated. Valuation of 15p per share Despite a long history CAP-XX has not yet reached sustained profitability; however, we believe that the acquisition of the Murata assets completely changes the dynamic and is a clear catalyst for a step change in revenue growth and reaching sustained profitability.
We believe the valuation continues to reflect investor fatigue, a lack of understanding of the transformational nature of the Murata translation and the higher burden of proof required for this. We believe this means the current valuation presents an attractive opportunity for the company with highly valuable IP in the energy storage space. Specifically for an energy storage technology company with unique IP, proven technology, growing sales, and in our view a visible funded path through to financial self-sufficiency, a £41m market capitalisation is not expensive by UK stock market standards, with many technology comparables trading around £100m on the promise of their technology and IP.
At a 13% cost of capital, our DCF implies a valuation of 15p/share which would be well supported. We believe this demonstrates the attractiveness of the opportunity, with the potential for this to increase significantly as confidence in its path to profitability increases and the perceived risk weighting to our Beta assumption declines further. We note that our valuation leaves upside from more licensees, including a potential result against Maxwell/Tesla, greater long term market share than 5%, as well as the potential for greater growth in supercapacitor demand from IOT than assumed in the IDTechEx forecasts we reference. We initiate with a Buy recommendation at a 15p/share DCF based valuation.
£26m mcap on current 6p price, is that at a disconnect to the business ?
It appears so to me when looking at the business, I see the broker notes produced in last couple of months, a clear sum of parts 15p+ target on current knowns, not including any IP infringement wins/cash etc....order book full and increasing, new business lining up with recent rns reach's, production line nearing capacity and new markets being broken into.
The transformational deal in securing the Murata line has allowed CPX to have positioned themselves nicely and they can now see a clear path to profitability.....the largest gains are clearly from the lows in an 'unloved' or over looked stock that the market has not fully appreciated, a stock that has potential to grow and where the sp is at a disconnect to the actual business .....
it also bounce back -)
I refer to you previous post “bye bye single digits. “ How you have the gall to then say it’s the share that keeps on giving is beyond me but so many people on these boards have no sense of embarrassment and keep spouting the same old rubbish. This share keeps on taking !!
Cap xx really is the share that keeps on giving.. can’t resist another £2k at this price .. patience is the key.. the tech is validated.. new customer contracts announced every month .. it’s only a matter of time