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And today you get your answer… guess somebody knew this was coming… leaky!
A few sells yesterday, makes you wonder if there’s something brewing? Not much communication !
HeiQ's first announcement of its carbon-capturing cellulosic yarn, designed to replace microplastic-shedding synthetic fibres, came with the proviso that it wouldn't be commercially available until late 2024.
https://plasticfree.com/inspiration/hugo-boss-x-heiq-aeoniq
With a bit of luck demand has outstripped supply.
'Boss x Heiq Aeniq Seamless Polo Shirt ' shows on Google but link invalid, quick search of Boss site doesn't reveal anything either, has it been withdrawn ?
Hugo Boss are going very green and making the circular economy a big part of their business which means aeniq is likely to be a large part of their plans going forward imo.
Aeniq Polo shirts out already..
https://www.productsofchange.com/news-article/hugo-boss-forms-charitable-foundation-to-be-bold-for-the-planet/
"In a major development in its materials use, Hugo Boss has this week replaced polyester in its Boss x Heiq Aeniq Seamless Polo Shirt with a cellulosic yarn made from certified wood pulp. This yarn – crafted by Heiq Aeoniq – boasts the same performance attributes as polyester but those synthetic fibres for a reduced impact on the planet"
Why should there be such a big sp fall today?! Any ideas...
At*
I bought in sr £1.30 :(
CEO dipped in for another parcel of shares . This time at the partially recovered share price. To my mind he is clearly signalling the current price is still way too low
Why he is being so active in doing so is an interesting point. He holds 10% plus of the company so yes he benefits if the price rises. But thats only on paper . If he sold shares the price would plummet
I am still minded to think he wants the price up to discourage or maximise the price of a take out ..
That's my conspiracy theorey of the day . Either way from the current share price there is value . Basically its a competively advantaged cash generative business
DYOR GLA
Indeed good to see the CEO take another block of shares . This is undervalued because of the IP. I guess ones' view on the desirability of a potential take over depends on your entry point and timing aspirations But it really does have all the usual elements that will attract the Private Equity Houses. I would be amazed if someone wasn't running the slide rule over it after the recent annoucement and hit to the share price.
It's also a classic for retaining the existing management when taken over just rolling some of their share crystallisation and putting them on an earn out .
What strengthens managements hand in such scenarios ? Having as big a position as possible . :)
Also if the management wanted to take the company private again I would be personally state building ahead of that play. That's probs a bigger concern as Management will look to get it on the cheap
In any event any corporate activity in the next few months will generate value off todays share price
GLA
Good to see the CEO buy another near 300k of shares. Clearly the IP of this company is worth more than the £40m mkt cap. The risk is a takeover. Every company in business is finding the macro environment a challenge to navigate and for sure the big projects (AeoniQ, GrapheneX) are taking longer than expected to bear fruit, but the fundamental value and potential of the products are still there.
CEO bought more, well done Carlo!
To think that the sp was 230 on 22nd Jan 2021!!
Now its is 30.
I wonder what would be a fair and objective price right now? All things considered.
Any thoughts?
Indeed . The CEO buying is a clear signal that the price drop yesterday was massively overdone.
I still think the business is a classic PE play . Share price down on a shock . A cost savings based short term recovery to the bottom line. Sales up as stock sell through . A differentiated patent protected offering that is proven cash generative .
Plus high management who own a lot already and could be taken out cheap now but with a lucrative carry position
Not sure about the Swiss Domicile and how thar would impact such a scenario. Never had any dealings there . Anyone know if take private deals in Switzerland are difficult to pull off ?
CEO bought £84k's worth, that's a massive vote of confidence!
I got few at 26p too.
Haven't seen these large amounts for a long time,but the price is nearly the same,anyway should go up in a few days time now it's on the radar
The RNS mentions that the acquisition is costing £850k of which 50% is being satisfied from the issue of shares at a significant premium to the closing SP on 3 January. It then mentions that it expects to issue around 613,000 new shares. This will satisfy £425k ie half the consideration for the acquisition. This means that shares are to be issued at 69p per share. This in my mind shows a lot of confidence by the BOD and the vendors of the acquired company in Heiq. The SP at 27p looks a real bargain to me and I've added to my long term position.
GLA and DYOR
I have have had a look at this stock a few time over the past 24 months . It surfaced at the time of the First round of Covid Hype stocks. i would have probably brought in but it wasn't on the Fidelity platform. It is now. ( A lucky break )
Looks to me that todays crash price drop is over done. I give some credibility to the notion that supply chains have been disrupted. It's not a company that has had to address a major hiccup before . Thats a good thing providing the management have the hutspur to address the cost base. They have said they will so I take that as face value as it easily called to account. The fundamental proposition of differentaited products with good Enviromental credentials and the prior record of cash generation mean I think the business will be turned back into profit in reasonable short order
We also have management with 20% Plus ownership. Something I always look for.
All that taken into account a 50% fall on the day looks overplayed and todays price is a gift of an entry point.
The noise about Covid and the return of masks etc also plays into the companies portfolio of products. I wouldn't be surprised if some VC's are not all over this at the moment. Its ripe for a quick flip .
A medium term hold here and one would hope for a decent return from where the price is today. Hopefully that will put the currently ( and rightly ) irritated LTHs back in the money .
GLA DYOR
Sorry to see people losing money, as updates go it's pretty terrible! Absolute shambles and they must have known for a while that prospects for growth were disappearing fast. God knows where it goes from here! Grew too fast then lumbered with too many overheads and too much RD costs. Looks like a tough 18-36mths on the horizon
FYI link to his european ceo of the year award......
https://www.heiq.com/news/carlo-centonze-wins-the-ceo-of-the-year-2022-award-by-european-ceo/?_gl=1*18mvmyk*_up*MQ..&gclid=EAIaIQobChMI4tn4zeit_AIVGcbtCh0j0ABfEAAYASAAEgKmyfD_BwE
on the plus side there are a few decent size buys today
and even more bizarre the ceo got an award for it
Is it too much,I think so,