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Yes Shandy, if the SP can get north of 8p prior to the EGM then I think we will be well placed to kick on towards 10p+ quite quickly. It would be great to see a large strategic win as part an end of year financials RNS to fan the flames, which might push us towards 15p. but that is me being overly optimistic.
Yes BOD options exercise prices are well above the current SP and the current broker valuation is c13p a share so there is much upside. Hopefully we should see 8p prior to the EGM and 9p plus afterwards as it appears until the sell is finalised the SP won't reflect true value and/or any increase is being sold into as people with c5p shares are taking some profit.
Nice rise today, fingers crossed for a good week with the EGM
Should be a strong week, GM 7 February 2024 at 9.00 am.
A few days ago they published their new incentive scheme, clearly interesting to see the vesting levels: 'The number of New Awards being made to Directors of the Company are set out in the table below. The share price targets range from threshold vesting at 9.32p with maximum vesting at 18.4p with straight-line vesting between agreed midpoints.'
Date was wrong i think, 8th on the online invite and should be the 7th as stated on the announcement?
Had confirmation the online meeting following the EGM to vote on the sale has been cancelled, hope nothing untoward with the sale, and just down to availability of directors etc. if so it should be re-organised shortly.
More more yesterday, time will tell but I can only see the buying pressure increase tomorrow and next week. We have a massive cash injection coming in, debt repaid and remain with the part of the business which has the best growth numbers. DYOR
Had to start rising eventually as we approach the 7th Feb. Anything below 7.8p (£30m valuation) still seems a very low purchase price IMHO
I've also done a quick thread on X - views welcome! https://x.com/Trendz_LSE/status/1752631608509698486?s=20
morning, gents. my reading of the timings is as follows but please correct me if i’m wrong:
1. shareholder vote - wed 7 feb
2. completion within 3 business days but expected on thur 8 feb
3. management presentation - fri 9 feb
4. new forecasts / broker note week commencing 12 feb
looking at the numbers for the continuing business is getting me excited! the growth is incredible and the reduction in overheads and finance costs is going to move the dial on net profit quite a lot. add in the cash in the bank and i really feel the market is seriously miss-pricing this. back of *** packet it should be closer to £50m market cap post close, imo
It was yesterday, early afternoon. I got lucky - tried to buy a larger amount but insufficient stock so bought 100k and within seconds price had risen to 6.28. I have been buying (again) when the price dropped below 7 and when overall valuation dropped to c£23m yesterday thought i'd load up, as a trade. After all we will get £25m cash in less than 2 weeks.
Hopefully this should slowly start rising back to 8p minimum as the recent SP action has been massively overdone IMHO.
I agree with the sentiment of your post, and bought another decent slice this morning at a similar price to you. good luck all.
Not sure about others but I have added another 100,000 shs at 6.49. February tomorrow and in my mind with February starting tomorrow and GM on 7 Feb buyers will definitively come over the next few days and I don't want to try to buy some more when FOMO will has usual kick in. DYOR
Just bought another 100k at 6.1p? Today???? How did you manage it?
Nothing that I can see. Doing its standard cork in a bottle trick
What am I missing?
Definitely looks undervalued. been buying today.
For info.
£25m valuation (the cash we will receive) is c6.5p a share
£30m valuation - the total value of the offer for the Management Div is c7.8p a share
£40m - valuing the Services Div at only £10m - 10.3p
£45m valuation - the total valuation based on the EBITDA multiple used for Mgmt div - 11.6p a share
Just bought another 100k at 6.1p. Surely a no brainer
Just to add to comments, with the current value now at less than £24m and with £25m to be deposited in c2 weeks the current SP is very undervalued.
With AIM shares i have noticed that people pile into a share and leave the moment news drops, however, on the whole this was never over hyped.
Although this did open a 9.75 when the RNS was released it fell almost immediately and has continued falling since.
Let's be honest if you conservatively valued the services division at say £10m and with the £25m cash (so ignoring the debt being repaid and the extra money linked to performance) the £35m valuation is over 9p a share - 45% higher than the current SP.
So where do we go from here?
I think clearly the sale needs to be ratified. Accompanying this the BOD need to show they have a sensible plan . Previously whilst they have shown they can grow revenues, profits and cash management have not been as well managed.
I still think a small special divi would be well received. 1p is less than £4m and is well over 15% return
Sheep. That’s the explanation for the share drop. Market makers also have to replace the shares they sold at 8-9p+, and there is only one place to get them.
There is zero chance that the deal won’t be voted through on February 7th, when EAAS will be trading at a substantial discount to cash in the bank, with £1m interest payments being removed going forward, with a cash flow positive business that last year grew at 187%.
Then the sp will be walked up and the sheep will follow again.
Thanks sitandwatch, appreciated.
Worth noting imo that its only shareholder approval holding it up and that should be sorted at the egm 7th Feb then its 3 days and the money's in the bank.
Getting used to this patience thing recently and as holding a few now will check up on the sp on or around the 10th to begin with.
atb,
panman.
I think the reference in the RNS to under performance in the last financial year has took the shine of the potential deal, and it is exactly that, a potential deal. As likely as it is to be completed, it isn't yet . I suspect the SP will correct once the deal gets over the line and last year's results have been published. They haven't proven themselves to manage cash well previously, and having £25m in the bank doesn't guarantee they will do going forward. Investors will want to see clear direction from the BOD going forward, and maybe even an RNS of a big win to have confidence to invest or hold.
Does seem strange doesn't it?
Market didn't want to pay 10p for a co. with a £25M cash injection coming in the next week or so as the remaining division only has yearly growth of 87% leading to revenue of £19.5M.
Doesn't seem to have twigged either that the £29M (£25M cash+ £4M debts paid off) is only the initial payment and EAAS are expecting another £8-£10M Sept 2025.
Either the markets being very slow or holders here have missed something?
Can anyone explain why the SP has dropped when only last week holders were tipping 10p and upwards?
Look like buys. Anyone confirm that?