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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.
Just bought another 100k at 6.1p? Today???? How did you manage it?
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?