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Good positive announcement today. I also contacted the Investor Relations regarding the share price move. They came back with the following which is as much as they are able to say, but positive.
"We acknowledge the recent change in our share price, which has been driven by retail investors selling, might seem disconcerting.
Regardless, the management team is focused on building a sustainable and profitable business, that creates value for our customers, employees and, investors.
As we have communicated since we listed last year, HeiQ is making good progress. This progress includes completing four acquisitions which have expanded our capabilities , growing our customer base, as well as entering new markets.
We are committed to communicating with investors as much as possible, including regular updates via the stock exchange on our progress. Our interim results will be released in September"
The good news just keeps coming. Difficult to understand the drop here but surely this will be the catalyst for a recovery in the sp?
We'll see some action today.
Well if that doesn't stop the drop nothing well. Excellent news.
Now that’s a decent partner!!!! Cooling and anti bacterial uses. Tights, gym wear, sports wear. hUGE.
Gonna hurt to be short today!
Great read from the RNS today with collaboration with LYCRA. Drop overdone?
Thanks Krusty. You may well be right. Everyday you think this has way over shot the bottom and then it drops another 5%. I do think this is a really good company, but as they say it takes a lot more than good ideas to make good businesses. The figures were so strong in maiden results with all the additional partnerships and acquisitions that should multiply with cross selling, its really hard to understand the drop. Pe is barely that of a growth company now, and its hard to see how this business which I wrongly stated was in a 10 billion sector, thats just one part of it. Its more like 50 or 60 billion sector. Its very fishy can only assume that it has something to do with acquired businesses selling off and Pi's freaking out with few buyers around for anything at the moment. Bargains appearing everywhere> its like the great summer sale
oogleflugal, at the minute the trick seems to be, if you don't like the buy price today, wait until tomorrow & you probably will. Selling is trickier, best avoided for now I think.
last week there were two sells of 350,000 shares at around £1.50. Maybe the mms got greedy expecting to turn a quick profit and are now taking the loss. Anyway, seems to be bouncing from £1.20 which is annoying cos I was too slow to grab some. Will have to pay a bit more now, gl
One has to think that the announcement of the 1H earnings should settle the market or give credibility to the recent fall - but given the previous management comments that the 1Q was better than 1Q and 4Q '20 you would think a miss is unlikely?
Its very Aim! Peel Hunt came out with target price of £2.38 and its been trickling down ever since a brief fall from £1.68. There have been some extraordinary sell offs on aim in last couple of weeks, even after perfectly respectable results.
It does look a bit like and eggs in one basket but this virus is not just paying a visit its here to stay in some for or other and a lot of planning for a healthy future needs very considerable foresight.
Fabric and paints in public spaces and at home could all do with help of some kind of defence where you can have a virus laying active for two weeks or more, no matter how often you wash your hands and disinfect surfaces. This is a 10 billion market and HEIQ. eyIts not going to disappear over night. If anything it will keep growing. They are right at the forefront with innovative products being used by hotels, airlines etc. You can imagine the kudos in their brand name becoming synonymous with protection in the hospitality, sports, leisure and travel industry. The balance sheet was sound as in results to Dec31 2020. Their acquisitions have been sensibly motivationally funded, so I can't see that can have changed if anything its like to have improved. An update soon would much appreciated. Can only assume its the new acquisition companies selling their shares, knowing they will get some more next year if they meet the takeover criteria.
It's a dilemma that's for sure. Every time I think the sp can't go much lower it plunges again! I suspect SC could be right, the market wants to see evidence that the core business continues to grow rapidly and the new acquisitions are adding to the story, not detracting from it. We'll soon be back at the placing price at this rate! Head-scratching time...
Or is it just Aim !! and market manipulation at its very best.
There have not been any great volume of shares traded to show any massive sell-off and a near halving in the shareprice, with the news that has been delivered seems unduly harsh. Been as high as 245p I believe.
Its a company with a very good CEO, that keeps it shareholders well informed and that seems to be making some very astute and accretive deals.
I may add in stages as they were well placed for the second half of the year and I think all the acquisitions so far will add good value moving forward.
Or it's just Aim !!
The IPO was at 112p, starting trading at 120p. I said the same think as lukeskyCBG a couple of weeks ago, having been around AIM for a few years I've seen this many times before. The market is smelling something, it could be their end customers, it could be suppliers, it could be major shareholders. We'll see, but I'm staying well away.
Based on their pre pandemic revenues of around $26-28m, they have a solid company with decent potential, I don't think it's worth much more than £100m market cap until we see evidence of sustained revenue growth. Still on a PE of 25 at the current levels, at that's assuming they hit their 2021 targets...
I must say the sustained downward price movement over the last 2 months is a tad suspicious given there has been no negative trading announcements by the company or about its product/performance in the wider market. So could it be due to someone with insider knowledge of some pending negative news and trading off it prior to general release?
Can anyone just remind me of the price at which Heiq stock was made available to institutions on listing?
Yes RudolphToo, sorry about that. Rookie error, I'll try to pay more attention in future! Thanks for the correction.
pawnsacrifice sincere apologies, my mistake. I read the 6-month chart on here without moving the scale back to the listing date. You are quite correct, thank you for pointing this out.
I remain bullish on this share, at c. 135 I'll be adding some more. Plenty of growth opportunities to come from the diverse, and growing, portfolio of products.
Its very similar to the RAS deal at end of April. They had to accept shares £1.96 as part of the offer but also includes earn out clause for performance achievement. They had revenue of 2.5 million, nearly half the offer price. This looks very exciting to me and can well understand Peel Hunts target of £2.38. 'We are going to have to live with COVID for a very long time'. This company looks like they are getting very well prepared for it.
It looks to me that this fall id directly related to the purchase of LIFE. They will issue nearly 2 million shares on Monday that was part of the purchase deal @£1.49 per share. In addition there is an earn out clause for extra shares or cash dependant on the performance of the new company.
Not sure why they didn't do a small placing. Perhaps their advisors decided this was a more efficient route. Short term pain for long term gain we hope! There are relatively few shares in circulation so this is bound to be volatile. They are obviously keen to be dominant in this sector as seen by rapid succession of acquisitions. They are a very young smart team, so set fair for a hair raising ride!
My buy printed as sell lol. Well gone long here slightly above 132p today. Lets wait and see.
Re. first quarter, that was very likely before the $10.5m of viroblock sales, so they would only need around $8-10m of recurring revenue to be ahead of Q1 2020. In my opinion the share price is doing it's best to tell everyone something...
Cenkos updated this 16th June after the LMT purchase. They were predicting revenue of $61.5m and adj PE of 32.4 at the then share price of 188p with $25.4m in cash.
If that's hit then they're looking pretty good value imo at this level imo.
https://www.cenkos.com/research-portal?#/portal/cenkos-securities/