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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,
Ah well, you can't win 'em all.
My investment here has now been written off. Can't believe they're spending more of our money despite keeping investors in the dark about the deterioration in trading & consequent loss.
go on then @26.
Made first purchase of shares today , the company has many directions this could go in there advance tech.
Something seems to be going on today?
The price has held up well in the current environment. I am hoping it doesn't collapse after I post this, but I have no complaints and will continue to add to my position.
Fk
Well, that's made a mockery of my last post.
Why the slow drop really puzzles me, Rns's nothing but good news, fair income not expecting rockets but a steady increase would be nice.
Solid set of earnings out today for the 1H 2022 and positive outlook for the rest of the year. The business is clearly profitable, growing in the right markets and generating cash. With very little debt, $22m of cash with a market cap of c.$100m I think the company looks very solid. I still think that the long term future is very bright for HeiQ as long as it continues to build on the current foundations. It could do with a few big contract wins or new partnership deals on Aeoniq. However, these things do take a very long time in the real world. I dont think the current share price is a full reflection of the future value, but given the volatility of the small cap market, not really a surprise. I still think it is very vulnerable to a take over. The briefing from the CEO on 14th Sept will be interesting
Is Heiq integrating graphene into its fabrics?
Nice bounce-back today, hopefully the start of better times ahead for HEIQ.
I agree with your assessment MMB007, I think this is just the kind of innovative, profitable organisation that private equity would love to take out. Big growth coming and the prospect of further acquisitions too. Fair value would seem to me to be somewhere close to £2 given the potential, let's hope it can claw it's way back there before someone with deep pockets picks it up for a song. GLA.
I agree 100%. There are still some doubters, but if people take the time and read the company releases or go to the trouble of watching the online web presentations then many of the concerns and questions being asked on this chat are answered in full by a very competent and eloquent management team. All available on the HeiQ website. The performance of the share price is clearly frustrating to investors (as it is to management who own 23% - and have been buying recently), but this is a small cap company and that is often the case - if you don't like the volatility of small caps, don't invest in them I would suggest.... The Aeoniq business is worth $200m, as confirmed by Hugo Boss's investment and there are similar investment partnership deals to be announced this year in a similar way to HB. The balance sheet is very solid for a small cap company with over 10% of its market cap in cash and a further 10% of credit lines available. The underlying business is free cashflow positive which is impressive given the investments they are making and the tough operating environment. I actually think the biggest risk is that another company makes a hostile takeover given the low valuation and potential growth. It remains a very good long run bet IMO.
If just a fraction of the deals and performance for 2022 comes off this stock will be meaningfully higher by year end. MEANINGFULLY.