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Smart - with respect, you have espoused a view with little, or no back up information to support it.
Well done if you sold @ 190p (personally I doubt it, as your 2 April post would have said so).
For the record, ITX didn’t lose the customer, they walked away because the customer thought it could hold a gun to ITX’s head. No company with ambition would countenance that a cheap tactic and this from a long-established customer - shame on them!
You have no evidence that the overheads have double relative to revenue, as some of that expenditure will almost certainly be variable costs applicable solely to that particular customer.
‘Initial pain for long-term gain’ - we don’t need transient investors…
DYOR.
Transient investor?? I’ve held Itaconix since 2020.
Having previously run a large factory I can advise that the majority of overhead costs are fixed. We supplied the 5 largest supermarkets and when we lost our largest supermarket accounting for 25% of revenue we became unprofitable. That customer was our lowest margin customer but their revenue previously made our operating costs much lower relative to total revenue. The loss of 50% of revenue for any company is catastrophic. I am amazed that you are trying to paint this as a positive.
My figures on reduced revenue and negative EBITDA are taken from Itaconix’s broker’s report published after the loss of their largest customer.
"ITX didn’t lose the customer, they walked away because the customer thought it could hold a gun to ITX’s head. No company with ambition would countenance that a cheap tactic and this from a long-established customer - shame on them!"...
...I'm not sure whether to laugh or cry. This is so cringe, it's actually difficult to read. Its hard to believe there are people in the world who believe this is how the chemical industry operates.
Look there is no point crying over spilt milk. The share price has taken a disproportionate hit already well in excess of said difficult customer ejection if you were to ascribe a single value to it. Undervalued now for sure and still has significant cash runway to profitability we are told so no dilution risks for shareholders. ITX has many more profitable accounts and a very healthy pipeline with ringfenced IP in an attractive high growth green sector. Shall we move on folks?
Smart.
I appreciate your experience….however, no two businesses are ever the same.
Yes, (by choice) they have discarded a large volume customer. However, expansion is very expensive, by filling that void with the new more profitable products is a sound business move. The business is not struggling, it is well run and financed. Short term pain long term gain.
I remain very confident in the products, the business and the management.
You have to laugh at some of the stuff posted here:
"There is no point crying over spilt milk" (Elsol).
I was crying yesterday and I'm crying even more today.
"I remain very confident in the products, the business and the management". (Wildcat_Driver).
Can you explain your reasoning behind this? Looking at the chart the S.P. is a mere fraction of what it was only a couple of years ago.
Unfortunately looking at the charts (if you believe in chart analysis) the 50 day moving average (186p) still has some way to go before it drops below the 200 day moving average (156p). When shares hit what is dramatically called the ‘death cross’ it tends to precede a near-term rebound with above-average returns. By my calculations this will be around 115p. If it gets to that sort of level the potential reward - risk ratio becomes more attractive providing you are willing to wait it out a couple of years.
Of course there’s always the possibility of some unexpected good news coming out of the company and thankfully Itaconix acid raw material was not on yesterday’s US list of enhanced China tariffs.
Death cross or no death cross ❌ it's going to a £1 , " 2p old money " disappointing really , but it moves fast on good news so £3 maybe with the wind behind it one day . Imho
The business has fundamentally changed unfortunately. From steady incremental growth backed by a promise of 'big impact' product lines in the future, we are now hawking our wares to individual (application specific) customers. ITX really needs to find a market for its product. I feel superabsorbent is the only viable target, I'm not convinced they have found a strong proposition in other markets (paint, leather, detergent etc.). The problem is, without knowing the details of R&D status of superabsorbant, investors are left to take a lot on faith. In other words, the promise of jam tomorrow.