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Very positive announcement on AeoniQ this morning: Another investor signed up - manufacturing this time which is positive: https://polaris.brighterir.com/public/heiq/news/rns/story/rd1538r
Great to see that John Lewis customers will sleep better on their anti-allergy pillows but it would be nice to see the same progress with the much delayed Audit. You can't help but smell a very large riparian mammal and wonder what has happened to all the cash raised and the value of the numerous acquisitions made. Hopefully I am wrong, but at the very least the Heiq non-communication department needs to overcome its allergy to keeping shareholders updated.
That's more like it, certainly better than the uninteresting grey Hugo Boss polo shirts at £140.
HeiQ now for sale in the UK.... John Lewis : https://www.johnlewis.com/search?search-term=HeiQ%20Allergen%20Tech
This is what the company said in the RNS before the share suspension:
"The Directors anticipate that the Company will be in a position to publish the audited report and accounts in the coming weeks. The Company will provide further market updates around the expected timing of the annual results publication once its financial reporting and the audit work is sufficiently progressed.
This is starting to drag on. Weeks are turning into months. Should we be worried?
I bought Heiq for the same reason as you, albeit, in retrospect paying too much. But I don't believe 5X too much. I am up for buying some more but suspect there is not great rush.
A similar pattern emerged at Equals, although fintech rather that materials technology. I that case the reports were slightly disappointing but the underlying growth of the quality corporate business was visible. Nevertheless, the market knocked it from 116p to 25p, since when it has recovered in a fairly steady line from Jan 21 to now at 92p. Plenty of time to see the continued progress and market sentiment catching on.
I think Heiq has great potential and, because of the current lack of support, there should be time to see clear operational improvement before the market price increases significantly. In other words, one for the watchlist but probably no rush today.
I would agree with the premise that this should bounce post the suspension
I have had a couple occasions where auditors have changed and new enterprise accounting software is being implemented. Both cause drlays to the normal course of business
The recent rns was pretty clear it was a process / procedures issue. Had Deloitte identified a " black hole " in the numbers this would have had to be annouced . Even if only at a potential risk level
My expectation is accountscwill get issued in the next couple of weeks alongside info about how the supply chain is working through the excess stocks in thevmarketplace
It was that that caused the drop from 50 p ish . Also expect expect an update on the cost control program. When that lot lands logic says the stock will rerate upwards
I originally got interested in Heiq because of its IP and 10 year plua track record of sales and profit . The fundamentals dont change once the current problems are worked through. Aa a result i am minded to think this is a buying opportunity at an depressed price . Could of course be wrong but nothing ventured nothing gained
ATB LTH
Anyone considering a HEIQ buy after the return from suspension may be interested in this research:-
"What to do when one of your stocks warns on profit
We discuss how share prices react in the aftermath of a profit alert
06 June 2019|Feature
... RECOVERY FROM A WARNING DEPENDS ON CIRCUMSTANCES
A study by UK finance professors George Bulkley, Richard Harris and Renata Herrerias looked at 455 profit warnings issued between 1997 and 1999 and tracked the stocks until 2001. Unlike some of the other studies that we discussed, this study looked further ahead. It tracked future earnings announcements that were released to the market.
It found that between 12 and 24 months after a profit warning, the average cumulated excess daily returns of these stocks was a positive 23% relative to the market.
In other words, the stocks showed strong signs of recovery between one and two years after the warning. This can be explained by analysts being slow to change their opinions, even in the face of new information. ..."
https://www.sharesmagazine.co.uk/article/what-to-do-when-one-of-your-stocks-warns-on-profit
The period of a year gives sufficient time for the s.p. to deflate, and for business recovery to take place and be sufficiently reported.
And it's also partly psychological: the one year period gives sufficient time for 'emotional healing'; and there's an element of 'self-fulfilling prophecy' re standard expectations of the common time period before recovery.
A good recent example of this 'one year rule' working well is NWT (Newmark Security).
After its 15th. October 2021 trading update the company's s.p. nearly halved over the following twelve months.
But since its 27th. October 2022 trading update, its s.p. has more than doubled (from 25.5p to 56.5p), on improved trading.
Newmark Security (NWT) 56.5p Market cap. £5.3M.
https://www.lse.co.uk/SharePrice.asp?shareprice=ARA&share=Aura-Renew-Acq
LOL Yorker!
Delaying the suspension date does seem a bit strange. Could it mean the audit issue is purely technical in nature rather than a signal that a black hole has been found in the accounts? Or am I reading too much into this. Anyway, I took the gamble of topping up at 18p. Let's see what the next few weeks has in store.
It would have been better to suspend trading straight away rather than give notice.
It obviously doesn't take much to be "CEO of The Year" in the textile world!
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?