Roundtable Discussion; The Future of Mineral Sands. Watch the video 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.
Hi Callum,
I am also a long-term investor, but sadly not as young as you. Yes, you're right, the fundamentals of the business are the most important thing. That said though, market movements can start to impact the fundamentals of the business. If your share price is low, you're in a weaker position when you negotiate with potential partners. You may also slow down your work schedule if the only way you can raise cash to pay for your development work is via a highly dilutive fundraise. (If the share price was high, your fundraise needn't be so dilutive.)
And that's the frustrating thing about where we are now. The management can talk about a 'strategic review' but I don't see how they can raise enough money to conduct phase 3 when the market cap is £15 million. Yes, they could sell the whole company but I fear that will be at a price that doesn't fairly reflect what we've got here.
Finally, don't give up on pharma - especially the big boys like GSK and Astra. They're very different beasts from the likes of Destiny and far less risky.
Your point about 'old device usually used to mean the company is for sale' seems spot on. In the RNS they even say 'Currently, the review is not actively considering an offer for the company'. From their timeline in the presentation they seem in no hurry to start the trial which, now that you said that, seems to be a strong call for selling the company (get your offers in!) before the trial. Which is really no bad news as it seems clear this would be handled better by a larger pharma co. The offer would likely be well in excess of current valuations given the current market cap and potential for the drug. So looks like this will be sold within the year (before cash runs out?). But I am generally wrong but even a stopped clock is right once a day (I mean twice).
Callum - i am a long term investor. Sitting on losses.
The investment case has certainly deteriorated from the excitement / expectations of last year.
The RNS was very poorly written. This strategic review stuff actually just makes them look silly. It’s an old device usually used to mean the company is for sale. So the mixed messages were quite odd. And their options aren’t that complicated so it’s just a silly thing to say which undermines confidence as we saw.
However, the detail of the presentation was pretty good. Both in terms of prospects and in clearly writing off any prospect for an equity raise in the next six months or so. So i left that thinking the price drop yesterday wasn’t deserved on the fundamentals - but was caused by the hopeless RNS.
Yes fundamentals are key and you need sometimes to ride out a negative market. However, the market is also telling you something so you have to keep your ears open or you can accumulate significant losses.
Personally i thought 15p was a good buying opportunity and significantly increased my stake at 15p. But time will tell!
Hi everyone - I've been reading these posts everyday for about 6 months now (not sure why! Confirmation bias maybe?). I'm young and right at the very start of my investing journey. One of the first companies I ever bought shares in was Dest. God knows why I thought I knew anything at all about the pharmaceutical industry... but here I am. Everything else that I now own is the opposite of Dest (think boring, reliable, compounders) and Dest now makes up a very small part of my portfolio (even smaller today lol).
The whole rollercoaster of Destiny Pharma will remain an invaluable lesson to me about investing and epistemology. Overall, I think it has been an amazing emotional and psychological test.
Even though I will never buy another pharma stock for the rest of my life, I still own my shares and cannot see a reason to lock in losses. The fundamentals of the business appear to be unchanged and (although I admit that I don't really know anything) the share price seems to get dragged around by short-term speculation and market sentiment.
I understand this is a high risk investment and by nature, the share price will be volatile. But I wanted to try and ascertain how many of the people here are long term investors vs short term traders? Are you all the latter?
From my perspective, I'm happy to sit on my shares for years and own a chunk of a business that seems to have created something exceptional and are attempting to perform a serious breakthrough. I watched a video today from this YouTuber ‘Justin Waite’ and he said: “a company whose doing very well and everything is going to plan does not do a strategic review”... wow...I’m sure the entrepreneurs in this forum will be able to explain to the rest of us just how ludicrous of a sentence this is.
The legendary quote that seems to stand out to me, in the context of Destiny Pharma is: “The stock market is a device for transferring money from the impatient to the patient.”
As far as I can see, the only risk to my investment in Dest is the fundamentals of the business and my own decisions. Not the volatility of the market.