Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Page 14 or 15 (14 ptined on the page, but Adobe reader says page 15)
"The Company may need additional access to capital in the future
The Group's capital requirements depend on numerous factors, including its ability to expand its business and its strategy of making complementary acquisitions. If its capital requirements vary materially from its current plans, the Group may require further financing. Any additional equity financing may be dilutive to shareholders, and debt financing, if available, may involve restrictions on financing and operating activities and adversely affect the Group's dividend policy. In addition, there can be no assurance that the Group will be able to raise additional funds when needed or that such funds will be available on terms favourable or acceptable to the Group. If the Group is unable to obtain additional financing as needed, the Group may be required to reduce the scope of the Group's operations or anticipated expansion, dispose of assets or to cease trading."
However, I think is a general warning and not a statement that they definitely will need to raise funds.
There are statements in here that show MrDibbles to be a clueless oaf.
2.1.1 Going concern
The Group made losses of £1.8m (2018: £2.0m) in the year of which £1.2m (2018: £1.6m) relates to the Adjusted EBITDA performance of the business. Cash balances as at 31 March 2019 stood at £2.4m and these were seen by the Board as sufficient to achieve break even and cash generation on its organic plans. Should the group not achieve its revenue and growth targets the Board routinely prepares alternative stress test scenarios to deal with lower growth and any ensuing shortfall in working capital. This assumes that cost reductions and discretionary expansion spend would be curtailed as well as cessation of certain investment spends. Other measures could involve the disposal of assets or business units. Furthermore, the Group could seek, as in previous years, the support of investors and Directors (debt or equity) and has received offers of invoice discounting facilities should it want them.
Based upon the above the Directors have a reasonable expectation that the Group has adequate working capital for the twelve months following the date of signing these accounts. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
Please note that these are just things that caught my eye. Please see the full document.
13,550,000 share options were granted at 3.50p, a price 19% over the then current share price. They vest in three tranches: the first tranche when the share price reaches 6.5p (25%), the second tranche when the share price reaches 9p (25%) and the third tranche when the share price reaches 12p (50%). The Share Options only vest if the average share price has reached the relevant threshold level for a period of three months, save for the event of a change of control in the Company, in which case they will vest in full.
4,249,999 share options were grated at price of 5p. They vest in three tranches: the first tranche when the share price reaches 7.5p (25%), the second tranche when the share price reaches 10p (25%) and the third tranche when the share price reaches 12.5p (50%). The share options only vest if the average share price has reached the relevant threshold level for a period of three months, save for the event of a change of control in the Company, in which case they will vest in full.
2,000,000 share options were granted at 7.125p. They vest in four tranches: the first tranche when the share price reaches 7.125p (25%), the second tranche when the share price reaches 10p (25%), the third tranche when the share price reaches 15p (25%) and the fourth tranche when the share price reaches 20p (25%). The share options only vest if the average share price has reached the relevant threshold level for a period of six months, save for the event of a change of control in the Company, in which case they will vest in full.
The weighted average fair value of the 17,799,999 (2018: 26,200,000) options granted during the year was determined using the Black-Scholes and Monte Carlo option pricing models. This resulted in a cost of 0.84 pence per option (2018: 3.41p). The significant inputs to the model were exercise price as shown above, an expected option life of three and a half years, expected volatility of 70% (2018: 50%) and a risk-free rate of return estimated between 1.02% (2018: 0.35%) and 0.92% (2018: 1.16%). The volatility is based on analysis of the volatility of the company’s historical share price.
Note - "the fourth tranche when the share price reaches 20p" - when will that be?
MrD, please don’t encourage Shep to “cut and paste” more information readily available..yesterday’s news...
He needs all his time to tell us have proficient the Station Master is at forecasting he demise of FLX.
If you don’t already know, the SM has called it down from 54p.
He is the only who was accurate with his guesses.
And don’t whatever you do NOT BUY UNTIL HE GIVES THE GO AHEAD.
I know it beggars belief and you do have to wonder about the mental state of Shep but would you not think that the Station Master would call a halt to
this if not just for the sake of Shep’s sanity but also out of embarrassment...
But NO, the prat the Station Master is, he is actually lapping it up when most of us would be absolutely cringing at the ridiculous “he was the only one who right” after he 2nd time never mind the 50th !!!
We can only take so much...
I feel so flattered that the worm took the time and the trouble to write all that.
It pleases me to know that he reads my postings so intently and absorbs every detail.
Morning Noel, They are incapable of discussing FLX and their losses in their investment while doling out advice here as well as personal abuse.
So back to the company once more. What are your views on the results Noel now there has been a few days grace to think about it. I know our 5p prediction was a bit tongue in cheek but was there enough in the report to get you to put fresh money in? There were plenty who did yesterday of course. Solarwynds and tehir break even timeframe seem a bit woolly to me. This is why I think once the froth has blown off here (and it is currently stalled) we will have a retrace and a revisit of 1.25p on the bid.
SolarWinds* apologies for the spelling
and your** 5p prediction of course Noel not our** :)
Shep, in any response can you try and give us all a break and give up with the “you were right and I did not listen, don’t buy until...” ramblings...
You have now worn that one out...
Would be very much appreciated..
new Solar Winds software roll out in the coming months does provide an opportunity for a strong business momentum uptick for flx imho.
Indeed, there's a clear case why this s/p can rise from these still very low levels in anticipation of this ( and indeed potential other avenues of progress by flx too.)
Altogether, there is of course still a decent chance that this can be turned into a successful business imho.
Nicetu, whilst you put up a good argument for a rise
and a speculative investment, it must be borne in mind that this goes against Shep’s INSTRUCTIONS not to but until the Station Master gives the thumbs up..
funny as some of your posts are DP, the whole tone between you guys is going to put people off this bb quickly imho.. and that's not good for broadening the church of falanxers ..
Generally, there may never be a thumbs up from Fk to buy here..or if there ever is it won't be at lower than 3.5p imho.. even if flx shows signs of upturning the business he'll still just say wait and see as there's a car crash coming around some corner in the future.... he believes this is a failing business and it will take a lot to change that view.. but the way AIM works this could be 3.5p and more quickly if some momentum is visible .. and even if it falls - or crashes back - that's a trading opportunity lost..eg 100% from todays s/p - or say 200% off all time lows for eg - is significant, even if for a loss reduced sell up for some etc..
Cannot agree more with your comments.
I believe most of FLX investors knew from the outset their investments were of a speculative nature which applies to most, if not all AIM stocks.
However, there are others who miss this point and judge certain investments as reckless and feel they have to help the “unintelligent” investors because they know best !
Where else would you get a stranger telling you what to do with your money ? Not once but 100
times...so absurd it borders on the ridiculous.
The same individuals “warned off” investors to “steer clear” of another share that within a short period of time gained circa 20+% ...
Anyone with any moral fibre would not even contemplate effecting someone’s decision-making
In terms of their investments ...especially on the back of, at best a gut feeling and at worse a total guess, albeit it one that was correct...
MrDibbles - re. my posting at 17:04 yesterday - "The Company may need additional access to capital in the future" and your reply at 17:49.
I wasn't expressing any view on whether or not the Group may require further financing.
I posted it merely to point out to the people on here who insist that there will be no placing, the wisdom of the saying "Never say never".
Michu Dodgy Pot doesn't care about the impact of his posts nor investors who may have listened to him at 3p and 4p. In terms of missing the boat in your example I would not worry about investing at 3p and having 'missed out' as long as I believed the story has changed. Which I don't. I thought there might be a requirement for a placing. That has proved wrong to date. Look at all the buying today in large volumes and the SP hasn't budged. I would short it from here for that very reason. I also say investors will be lucky to see 3p not to mind 3.5p. I have no FOMO here. I will happily admit I am wrong if it turns out that I am. I haven't gone away and hidden on the 25% rise which goes against my call on this.
Good morning FK.
I was intrigued by that figure of 222%, but that was a minor detail in the report.
There was nothing in the results to make me want to put more money in, but that is because I am already so heavily loaded up.
I find all very tantalising. As we have seen from Crossword and Sophos, the demand for cyber security is huge and for FLX there is the added benefit of the SolarWinds tie-up, so FLX should be a good prospect - but can I trust a company that gives out so little information and says something about four weeks, but fails to hit that target? I have in mind all of your comments about "snouts in the trough" and smoke and mirrors, oh worshipful one (that should keep the worm busy on a long reply :-) )
I always treat figures with a degree of caution. In recent months, I have heard two guests (well respected senior accountants) on the Business section of Radio Four's Today programme say that there can be lots of nasties hiding in the figures and the auditors won't pick up on them. Those guests were talking about accounts in general and NOT about FLX specifically. Also, look at all of the high profile company collapses in the last year or two where, after the collapse, the accounts, which had been passed of by auditors, were found to be dodgy.
Figures need examination - e.g. "Loss per share reduced by 53% to 0.58p (2018: 1.24p)" - it sounds good, but is that only because the extra shares diluted the loss per share?
A lot of the hope value relies on the SolarWinds tie-up paying off. Mike Read said - "We anticipate the SolarWinds partnership to start to bring benefits in the second half of the current financial year as they rollout their product" second half of the year - doesn't that mean from the start of October? and in the Chief Executive Officer's Report we find this - "to support growth plans such as SolarWinds which is expected to start benefiting in the year ended 31 March 2020".
So it is anticipated and expected, but not guaranteed. At 10:31 on Monday, MrDibbles told us - "The company now has 100’s of happy customers…with more joining very soon" - more joining soon - I hope so, but didn't he make it sound like a certainty rather than "expected".
Also, see this - "SolarWinds has engaged with the three inaugural TMSP’s, of which Falanx Cyber is one" - so the period of exclusivity is over.
So with my reluctance to take the numbers as evidence, for me it all boils down to - can I trust the people and the things they say. We should get the Interims in November. They won't cover the second half of the year when the benefits of the SolarWinds tie-up are anticpated to start rolling in , but I hope for a few words in a "Post Period Highlights" section to give us an indication of if it is happening. If not, then I want a trading update very soon after the Interims.
I am watching the trading with great interest. For me, this is a time for serious decision making - is it a chance to offload some be
The end -
I am watching the trading with great interest. For me, this is a time for serious decision making - is it a chance to offload some before it drops back again, or do I hang on for 3p?