Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Started: Rickygib, 19 Jun 2024 11:29
Last post: AJP08, 19 Jun 2024 12:13
Hi R
A wait and see situation, but I am of the camp that they may pull a rabbit out of the hat and beat expectations of around $3 plus mill
Leather may be a big positive and also new added accounts.
“We have received initial orders from important new accounts in Europe and North America, including a new dish detergent gel in Europe and expanded use in sustainable leather. We expect revenues from these new accounts and meaningful volume growth from two key existing accounts to predominantly fall ( occur )in H2 2024 and beyond.”
ATB
AJP
I'm not expecting much drop in July due to results update. They may not look like good results but I think this has all been factored into the SP already. Maybe it will bounce off 1.35 but I think that I'd the bottom. The we will have a reasonable recovery throughout the rest of the year.
Started: Cluelesshareboy, 13 Jun 2024 10:56
Last post: Elsol, 18 Jun 2024 20:07
Sorry typo 25 Dec 25!
Hi SI, yes, Thundergod (nice name BTW) did jump into my shoes but he/she is free to comment as a long term quiet (rumbling) investor in the background.
1/ Re: Cashflow => Good point (my bad) but I guess CF breakeven therefore is midway between FY25 and FY26 so that makes it 25 Dec 24 between friends then if you don't mind me taking a few days off you to make it a festive transition that we can celebrate. In any case, it matters not if the business is growing so weakly in your doomsday meltdown scenario there will be plenty of surplus planned capex (in brokers report not now needed - say $3m FY 24/25) that is un-invested and hence we are good to survive even longer into the future without cash calls by the company.
2/ Re: Loss in value statement (your bad). Revenue does not translate directly to "value" - I assumed the said lost customer (c.50% revenue) would attract a significant relative c.50% discount in value terms because it was clearly either a borderline loss making or marginally profitable contract hence an appropriate hair-cut is in order. If you eject one 'bad/problematic' customer and clean up your otherwise nicely growing portfolio then that could be an okay strategy as long as you can replace it with more profitable customers as per management and Broker expectation (e.g. H2 24/H1 25). So, I still uphold that the share price fall is well over-cooked and will revert once the full landscape of this interesting tactical decision surrounding the said customer becomes clear to shareholders (e.g. there was a reason to kick out the customer a few months ago and that is not totally transparent to shareholders at this point in time and the reason for your opportunistic arguments are to try to crash the share price to your stated 'buy in' target of 110p after you sold at c 190p and said you were not investing again in FY 24 (which of course I totally respect). But it's your choice to wait and risk being out of the stock if it reverts back to 250p+ with favorable news of new wins and / or positive trading updates in H2 (paints/leather). However, if you had 100% confidence in your doomsday scenario and bleak share value prediction during the whole of FY24 you would not waste your time on here and go do some golfing instead as you kind of suggested at the outset. The fact you are majorly circling suggests you are desperate to buy back in at a slightly lower price point but you may shoot yourself in the foot when and if good news flows happen in H2 FY24 (which you may likely fear is a reasonably probable outcome as I do).
Wow, straight to personal insults.
Apologies did not realise when you said you would not post again there were caveats to this. I just read what you wrote.
Yeah, you right I don’t post much and this is my "first" ever post here...well apart from the posts in 2021! Was not aware calibre of person was measured by number of posts but explains a little.
"post under usual", nah, means nothing to me but interesting your mind went that direct.
As stated I don't post much, so knock yourself out with more personal insults as I wont reply (honest)
Hi Thundergod I see this is your “first” ever post here and first post for 2 years on lse, and you comment on an exchange I had with Elsol!
Why don’t you grow a pair and post under your usual name.
PS- of course I am going to respond if people are calling me or spouting false info.
Can someone tell me when the trading update was?
Smartinvestor...."However, I am happy to stay quiet and see where the share price goes as you suggest. See you after the trading update "
Started: justdeezerts, 14 Jun 2024 18:17
Last post: Smartinvestment, 15 Jun 2024 09:57
I am a firm believer in learning from the past and studying history.
The 7th December trading update forecast $9.7m revenue and improving gross margins for 2024. Despite that the share price fell to 114p just a week later which I think shocked all of us.
So imagine the market reaction if H1 revenue comes in at just £2m ($2.5m).
It’s all very well the company promising jam tomorrow but if the market does not see sufficient evidence of tangible progress replacing the lost revenue it will not react well. Thats not doom and gloom that’s the potential reality of what the market will be faced with in a few weeks time.
Of course I could be way off the mark and revenue comes in higher as AJP suggests. Only time will tell whether the bears or the bulls are correct.
Good luck all and enjoy your weekend.
C'mon Mr Desert, the S.P. is a mere fraction of what it was only 3 years ago, there is plenty to be gloomy about. Plus as I said before if Smart's prediction is correct we are just sitting here waiting to loose more money. I sincerely hope we have a considerably better week next week.
Have a good weekend yourself.
There have been some pathetic (that is the only adjective to use here) posts on this BB today.
All doom & gloom!
There are 13.5 million shares in issue. There were 11,500 sold today and 24 bought. Do you really think those paltry sales reflect what is going on in ITX?
If so, just bail out of here, move on and spread your misery elsewhere.
Everyone else, have a great weekend.
Started: Warrenbuffetftse, 13 Jun 2024 13:01
Last post: Smartinvestment, 13 Jun 2024 13:12
Last year it was 12th July
When is the trading update
may be in future we all resort to ****ney rhyming slang
The system deleted part of my word S****y. It rhymes with "panky!" :-) Crazy world we live in today in 2024 that a genuine friendly word can be subject to north korean style censorship!
if i recall correctly, we are due a new s****y, compelling web site soon...bring it on john s and bill mcclure!
Last post: Rickygib, 11 Jun 2024 21:47
I don't think I've seen a trade for 0 shares before.
Started: Wildcat_Driver, 20 May 2024 13:33
Last post: chilting, 10 Jun 2024 15:10
Your conclusions may be correct Smart, but as long term investors its better to take a longer term view and not do a knee jerk sell when things take a bit of a downturn.
Its the long term that interests me and that is very positive.
Any downturn will however give new investors and those that want to add an excellent buying opportunity, so I don't see more than a temporary blip.
Not sure to what I owe the honour of a whole thread titled Smart Investment. I have always posted my opinion openly and honestly about a company that has great potential but somehow fails to deliver just when we think things are going great.
As I keep saying the time to invest in my honest opinion is after the board get the bad news revenue figures out of the way and shows real progress in replacing the lost revenue (numbers not words).
The recent trading update which talked about and quoted improved gross margin but neglected to say what the revenue was, on which the gross margin was calculated, should have alarm bells ringing in everyone’s ears.
H1 trading update is not far away and surely the board will have to tell investors just how bad the revenue was. I predict a very negative market reaction to this which is why I’m sat watching (again being open and honest about my position). I hope for everyone currently invested that I am wrong. GLA.
Feeding off my genuine post I mean...
Always suspect when no evidence presented "now is the time" then when nobody took notice took money off the table- sorry Ten Bear to call you out but you can deny obviously if that wasn't you!
Maybe that was TENBear moving his "ten" K around - buy-in then out again - very similar volumes. Has a "strong buy" rating on everything in the recent past. But the 6 months trend is up 20% so I will take 40% for full year!
Started: Elsol, 30 May 2024 18:56
Last post: Elsol, 30 May 2024 18:56
Like every other index, money flows are returning to equities. Some indices bigger gains than others given possible reduced interest rate expectations. Just checked long term relativity. AIM Index is now midway point of extreme dip caused by covid during 2020. Itself a massive adverse impact to stocks. So looks like AIM has a long upward path to get back on track on a relative basis. Bodes will for share price tailwind on ITX and other AIM stocks IMO during 2024. Would help massively if John gives us some more good trading news updates during H 2.
Started: AJP08, 24 May 2024 14:45
Last post: AJP08, 24 May 2024 14:45
Started: AJP08, 24 May 2024 13:29
Last post: AJP08, 24 May 2024 13:29
Just having a peruse.
https://www.ouidad.com/products/curl-shaper-take-shape-plumping-defining-cream?variant=42617152536834
https://www.ouidad.com/products/curl-shaper-out-of-thin-hair-volumizing-jelly?variant=42617152438530
https://www.ouidad.com/products/curl-shaper-memory-maker-3-in-one-revitalizing-milk?variant=42617152372994
https://www.kiyobeauty.com/products/twist-by-ouidad-boss-bounce-light-as-air-buildable-styling-cream-8-5oz
https://maxpopetheedit.com/products/haute-performance-curl-revive
https://ingredien.com/dk/ingredien-nature-leave-in-conditioner-250-ml
https://www.desertcart.ie/products/291605355-cambridge-knight-3-in-1-shampoo-conditioner-and-body-wash-200ml
https://www.alkemillacosmetici.it/en/styling/578-curls-styling-milk-alkemilla-8051414385087.html
https://www.regenwaldladen.de/products/sementes-fester-conditioner-aus-regenwaldolen
https://4mycurls.com.au/product/moptop-curly-hair-cream-74ml/
https://wallowavalleycleaningproducts.com/products/wallowa-basics-laundry-powder
https://wallowavalleycleaningproducts.com/products/dish-soap
https://wallowavalleycleaningproducts.com/products/vehicle-cleaner
https://www.greenpicks.de/en/hairstyle-powder-kraeutermagie.html
ATB
AJP
Started: AJP08, 22 May 2024 08:43
Last post: AJP08, 22 May 2024 10:00
Hi S
Why not drop them an email, see if they give you an answer.
Would be nice to have an IR contact going forward to put such queries to bed, very quickly.
In my opinion I would expect that we will receive a full and concise update around mid July, any positive updates between now and then would be much appreciated.
ATB
AJP
Thanks AJP
Pity they didn’t mention the oversight of not telling investors year-to-date revenue in the RNS.
Be interesting to see whether investors get a H1 update this year and if so whether it states H1 revenue or continues to just state gross margin.
Hi all
Thought I would share
There appeared to be a bit of confusion being expressed on the ADVFN board about the fowling statement from the RNS on Monday "predominantly fall in H2 2024 and beyond.", so I dropped an email to Corporate and got a reply back from John/Laura.
"We have received initial orders from important new accounts in Europe and North America, including a new dish detergent gel in Europe and expanded use in sustainable leather. We expect revenues from these new accounts and meaningful volume growth from two key existing accounts to predominantly fall in H2 2024 and beyond.
Reply
Thank you for your inquiry.
We received the same question at the Q&A portion of the AGM.
The term “fall in” means “occur in” in the referenced sentence. It was an oversight on our review of the RNS that it could have another meaning.
I appreciate your interest and support.
Regards,
John
ATB
AJP
Started: Warrenbuffetftse, 20 May 2024 08:12
Last post: Warrenbuffetftse, 20 May 2024 16:19
Won’t be far off 30% by close, easily do 60/70% rise by end of week.
Back to 250p by the end of the week, 30% rise today
Started: justdeezerts, 20 May 2024 11:32
Last post: DD77, 20 May 2024 16:08
Smartinvestment - it looks like the wider market disagrees with you, and comprehend a simple read-across from previous RNS. Up 20%.........there's that boat sailing away ;)
Hi Foolsgold I put Strong sell because I think todays’s share price is over inflated. If Itaconix had done the right thing today and informed investors of year-to-date revenue then the share price would be at a more realistic level for the current state of its business which its own broker forecasts as loss making in 2024 and 2025.
I agree that there are lots of positives for the long term and actually I warmly welcome these.
The company should issue an RNS informing investors what was the year-to-date revenue behind its year-to-date unaudited gross margin.
This is the most basic fundamental information in a trading update. The company knows what it is but they are choosing not to disclose it!
How is your STRONG SELL opinion a balanced view?
Based on the recent news I could understand a neutral no opinion stance if you have reservations about the companies direction but since John has stressed recent choices are by choice and for the future growth of company your acting like company in free fall seems disingenuous.
Just Deezerts - only time will tell.
The company will have to disclose its revenue at some point. If it had the balls to disclose the actual year-to-date revenue in today’s RNS then the share price might be very different right now.
If you can’t see that they have purposefully omitted year-to-date revenue whilst selectively quoting year-to-date gross margin then good luck to you.
As for whether I’m welcome here or not, I don’t give a hoot. In fact your rude messages make me all the more determined to present some much needed balance on this board.
Smart - you can quote as many Regulations as you like (I can Google them, too!) and you have every right to diss this RNS and much as you want - but you ain't getting back in @ 115p, as you had hoped. So, get over it!
Perhaps it's time for you to move on and move away for here. Can't you see you are most unwelcome?
Positive RNS and a fresh approach from the re-invigorated Board - keep it up!
GLA
Started: Wildcat_Driver, 20 May 2024 12:18
Last post: Wildcat_Driver, 20 May 2024 12:18
It seems the press don’t have the same baseless concerns a certain people on here.
Alliance News) - Shares in Itaconix PLC jumped on Monday, on the back of new clients and regulatory approvals, though the company stood by its forecast of a decline in annual revenue.
Itaconix is a New Hampshire-based manufacturer of plant-based polymers. Shares in the company were up 11% at 155.00 pence each in London on Monday morning.
According to a statement from Non-executive Chair Peter Nieuwenhuizen, set to be given at the company's general meeting on Monday, Itaconix's performance is in line with the company's previous expectations for the current financial year.
In April, Itaconix said that revenue for 2024 will be in the range of USD6.0 million to USD6.5 million, compared to USD7.9 million in 2023.
The company said that this was due to the failure to reach satisfactory commercial terms with a "major existing merchandising customer" in North America.
However, Itaconix said that it has made progress in 2024 so far, with "new products launched, new accounts won, uses in new applications, higher gross profit margins, new studies on the biodegradability of our products, and an expanding global footprint of regulatory approvals for our products."
Initial orders have been received from "important new accounts in Europe and North America," the company added, which are expected to generate revenue and "meaningful volume growth" in the second half of the year and beyond.
Itaconix said that its gross profit margin in the year to date is over 35%, compared to 31% for the whole of 2023.
Nieuwenhuizen's statement continued: "We have advanced the global regulatory acceptance of our major products with new approvals in China, Australia, and New Zealand. These approvals are expected to generate new revenue opportunities for current European and North American accounts to sell their products into this region and for new prospective customers in these countries."
By Hugh Cameron, Alliance News reporter
Started: Smartinvestment, 20 May 2024 09:12
Last post: AJP08, 20 May 2024 11:38
Hi Smart
Thanks for your feedback, much appreciated.
Was just looking back at the GPM for last year $2.237 mil (from results) and from the viewpoint of an optimist that sees a huge future in this company and would concur with Elsol that they have made the correct decision going forward.
My view is that we will achieve revenue of around $7 million this year(only my view)
$7 mill @ 35% = $2.45 mill GPM
$7 mill @ 37% = $2.59 mill GPM
$7 mill @ 40% = $2.80 mill GPM
Thank you AJP I appreciate your feedback on the AGM articles - that makes sense.
I do not hold a short position in Itaconix. I have never held a short position in any stock in my life and I never will.
I just want to see the facts and believe all investors have a right to this. Today’s RNS has clearly been articulated in a positive way but has avoided the elephant in the room. What was the year-to-date revenue? Why is everyone afraid to find out?
I believe the RNS has given the strongest guidance management could to reassure loyal longer term holders of this stock that the company is well managed and ITX are continuing with positive trajectory from here given all the great developmental call outs - job well done. It also shows what a profit drag the lost client had on the company's overall performance and its now clear to most here why they decided on balance to eject the one client from our growth strategy technology platform. ITX have again reaffirmed the exit for FY24 revenue (BTW which I believe the company will out perform anyway as the current guidance is a prudent base case). If anyone has short term worries then a dynamic growth stock may not be your cup of team and invest in FTSE diverse giants with, say, 4%-5% p.a. growth possibilities. But this is an exceptionally strong hold now for sure for 2024 with some major possible upsides with more market access/sales wins newsflows.
Hi Smart
Sorry you asked for feedback on the following (Agenda for AGM today), but it obviously did not align with your agenda?
Can you tell me after you sold out, as you say, did you take a short position and that is why you are so animated, as usually you would be shouting the positives to all that would listen?
In my experience, one doth protest too much.
Hi Smart
Unless the articles or shareholders’ agreement contains provisions to the contrary, companies can disapply pre-emption rights in certain situations by passing a board resolution or a special resolution of the shareholders at a general meeting – this requires 75% approval from shareholders who are entitled to vote, either in person or by proxy. Companies may choose to do this to raise capital from third-party investors. Importantly, this is a regular request on the AGM agenda for UK listed companies and is split into two resolutions, a resolution for an unrestricted authority and a resolution for authority specific to acquisitions or a specified capital investment only.
Think that this is to give them the power to make that decision without having to go back to the shareholders?
That is if I am reading this correctly
ATB
AJP
Covmutley - Previous RNS on revenue was a forecast. The company has not given any ‘Actual’ achieved revenue data.
Today the company has reported ‘Actual’ unaudited gross profit margin but not given the ‘Actual’ revenue this was based on. This is a glaring omission.
“Importantly, our unaudited year-to-date total gross profit margin is greater than 35 per cent compared to 31 per cent for FY 2023.”
Itaconix - please tell investors your unaudited year-to-date revenue so investors have the complete story.
Started: Cluelesshareboy, 20 May 2024 10:01
Last post: Cluelesshareboy, 20 May 2024 10:01
Would be good if one day we could reach the requirements to receive recognition from HRH , what a boost that would be for the compy
Started: Foolsgold2.0, 20 May 2024 10:01
Last post: Foolsgold2.0, 20 May 2024 10:01
I wish certain posters would stop de ramping the share and move on if they feel so strongly that it's not worth investing in.
Smart, you say you sold all shares around the £1.90 price and you continue advising people to sell their shares.
Why don't you just do everyone a favour a move on!
Started: Foolsgold2.0, 20 May 2024 07:45
Last post: AJP08, 20 May 2024 09:39
Hi Elsol
This all ties in with the AGM vote today and the potential that has been discussed on this BB to have a new plant in Europe in the not too distant future.
Nice to get this positive update only 8/9 weeks I would have thought till we get half year update, but excellent news that we have an ever improving GPM, although some may be a bit upset that they may not get the low re-entry price they were looking for?
ATB
AJP
Great - new orders received for leather chemistry so fun to see how that fares in rest of 2024 (adoption curve). Diversification is the positive for shareholders now given strategic direction with wider EU expansion and emerging markets possibilities (china etc).
Basically, the decision to not cave into the existing supplier wanting to chip them is working.
I am very encouraged by the year to date total gross profit margin already 4% up on full year 2023 results and we still have 2nd half of year to go which will include new key accounts and meaningful growth from key existing accounts!
"Importantly, our unaudited year-to-date total gross profit margin is greater than 35 per cent compared to 31 per cent for FY 2023.
We expect revenues from these new accounts and meaningful volume growth from two key existing accounts to predominantly fall in H2 2024 and beyond".
Started: Smartinvestment, 20 May 2024 08:21
Last post: covmutley, 20 May 2024 08:49
But it does. It says we are still in line with the RNS of 2nd April, and that RNS reported the reduced revenue.
We all know the decision put the company about 12 months behind on revenue. ITX has very clearly said so themselves, so not sure why youve missed that.
How can you give a trading update and not state the unaudited revenue?
35% gross margin sounds great but on what revenue?
This is a highly selective trading update.
If that doesn’t ring alarm bells to you guys then nothing will. GLA.
Started: rivaldo, 20 May 2024 07:37
Last post: rivaldo, 20 May 2024 07:37
I'm reassured by today's AGM statement. With the £10m or so cash pile I'd say prospects look nicely positive, and all of this reads rather well:
"After the decisions we made at the start of the year, I am pleased to report on year-to-date progress with new products launched, new accounts won, uses in new applications, higher gross profit margins, new studies on the biodegradability of our products, and an expanding global footprint of regulatory approvals for our products. Itaconix trading to date and the Board's expectations for FY 2024 results remain in line with what we set out in our announcement of 2 April 2024.
"We announced two new products on 29 April 2024. Itaconix TSI 422 is an advanced version of our leading Itaconix TSI 322 that offers improved performance, lower overall formulation costs, and more compact formulations in cleaning applications. Itaconix ONZ 405 is a powder version of our current liquid odour neutraliser to meet customer needs in powder formulations, particularly in laundry and hygiene applications.
"We have received initial orders from important new accounts in Europe and North America, including a new dish detergent gel in Europe and expanded use in sustainable leather. We expect revenues from these new accounts and meaningful volume growth from two key existing accounts to predominantly fall in H2 2024 and beyond.
"As stated in our announcement of 2 April 2024, we are working to realise more value for the benefits that our ingredients deliver in consumer products. Importantly, our unaudited year-to-date total gross profit margin is greater than 35 per cent compared to 31 per cent for FY 2023.
"We have completed a series of studies to expand the data showing that our water-soluble polymers do not persist in the environment as customers and regulators increasingly focus on the safety of ingredients used in consumer products.
"We have advanced the global regulatory acceptance of our major products with new approvals in China, Australia, and New Zealand. These approvals are expected to generate new revenue opportunities for current European and North American accounts to sell their products into this region and for new prospective customers in these countries.
"As stated before, our strong balance sheet provides us with the resources to continue our commercial expansion and pursuit of new customer, application, and product opportunities for high-margin revenue growth. We remain optimistic about our goal to build a large, profitable company with recurring attractive-margin revenues from a large and broad base of customers that use Itaconix products as key enabling ingredients in new generations of consumer products."
Started: dougerboy, 16 May 2024 20:47
Last post: dougerboy, 18 May 2024 00:13
Thanks AJP. How did you know I was good at German!
Hi DB
Think that Thordon was taking a bit of a back seat as he was caring for his terminally ill father.
Our thought are with him during this very difficult time.
Any good at German? Think this is very similar to comfort laundry conditioner in the UK, will be made in large quantities.
https://clovingermany.de/storage/2024/04/Auflistung-der-Inhaltsstoffe-Lammi-Weichspuler-Lovely-Pink.pdf
https://www.ceneo.pl/159588488
ATB
AJP
Where‘s Thordon our main research sleuth these days? Have you sold up Thordon - understandable if you have irs been longer than expected. Hopefully good things come to those who wait.
This is significant: The Pampers diaper is composed of an average of 3.97 g of sodium polyacrylate, linked on a thin thread, and an average of 0.71 g of cotton. Huggies has an average of 1.88 g of fine powdery sodium polyacrylate and an average of 6.97 g of cotton.
I am sure the CEO and his team will be trying to replace that acrylate word with ITACONATE
Started: Smartinvestment, 17 May 2024 13:48
Last post: Elsol, 17 May 2024 19:04
Hi SI - re: "They never have explained why they needed to make such a large capital raise last year. That’s a lot of money just sat in the bank at the cost of shareholders who suffered the dilution." THEY HAVE EXPLAINED IT FULLY.
In fact, the additional capital raise was amazing - it was placed at c.250p so "they" rather than "us" appear at the mo. to have taken their shirts to the cleaners rather than the other way round - great to get so much dosh on BS at such a high price per share (+40% premium to the present mkt cap? )... also the added cash is a great risk mitigation safety blanket and allows us to value maximise all our IP extensions/development pipeline/marketing leverage in EU and wider market diversification/investment for web site and possibly flexible added plant and equipment etc etc etc- IT WAS AN AMAZING fund raise if you think about it as a LT investor!
Hi Smart
Unless the articles or shareholders’ agreement contains provisions to the contrary, companies can disapply pre-emption rights in certain situations by passing a board resolution or a special resolution of the shareholders at a general meeting – this requires 75% approval from shareholders who are entitled to vote, either in person or by proxy. Companies may choose to do this to raise capital from third-party investors. Importantly, this is a regular request on the AGM agenda for UK listed companies and is split into two resolutions, a resolution for an unrestricted authority and a resolution for authority specific to acquisitions or a specified capital investment only.
Think that this is to give them the power to make that decision without having to go back to the shareholders?
That is if I am reading this correctly
ATB
AJP
AJP please can you re-read resolutions 6 and 7.
It uses the word “disapply”. I took this to mean they are not proceeding?
As highlighted by Elsol
In particular point (6), possibility of a European plant?
I have managed to get hold of the new Brokers Note entitled "FY results: strong cash flow".
Key points:
1. Valuation target retains at 325p with BUY rating (currently mkt price today is only 47% of Broker price target).
2. Broker valuation rationale :
“Our target continues to be based on two arguments:
a. the multiples applicable to a mid-cap chemicals company, and;
b. the value which we believe is applicable to Itaconix's differentiated market position and which would be relevant to an industrial third party." (so Broker is considering full opp. pipeline market value/+DCF going concern value to possible acquiror). "At our 325p target the stock would trade at 5.1x/3.7x 2025E/26E EV/revenue, which we believe would be highly attractive to an industrial buyer looking at markets with gross margins in the hundreds of millions of dollars annually.”
3. More discussion of underlying customer portfolio growth WITHOUT the 'low margin' customer - Observations:
Underlying revenue growth of post loss “core” business is v. large: “Excluding the major North American detergent merchandizing customer, we understand 2023 revenue was $3.6mn, and therefore growth from other customers in 2024E (largely derisked) is c.70% for 2024. We expect this growth to be across Itaconix's end markets, in cleaning, hygiene, beauty, and in various new industrial applications. We also expect growth to continue in 2025E at above 50% y/y."
4. Cash on Balance Sheet is sufficient until after FY 2026 when ITX business transitions to op. cashflow positive
5. Manufacturing building facility lease renewal for another 10 + years (confidence?): "In December 2023, Itaconix renewed the lease on its existing building to 2034, resulting in the recognition of a c.$2mn asset and c.$2mn liability under IFRS16."
6. Possible asymmetric Broker treatment (revenues v’s plant capacity) – the capex is still quite high during 24E/25E/26E => aggregate of $4.0m (about 2x a plants worth?) and ave recent depreciation is c$0.2m. So looks like we are replacing all the plant assets plus adding another one unless there is considerable re-tooling going on. Unless I have missed something there appears to be a mismatch since when we heard in the management call the other day – a denial for any new plant at this time for the foreseeable future. I’m scratching my head a little on this and can only assume the revenue line is light or the capex line is heavy. You can DYOR on this but makes sense not to over commit to possible upside revenue and be full on the cost/capacity area so perhaps that is the theme here - forecast prudence.
7. John said on the call that there should be some "news" in the short term (RNS) for diversification wins so I expect we will know more when that disclosure is made (leather/paints)
ATB
AJP
Please see resolutions 5,6,7 below. Does this mean ITX were planning to make an acquisition but are no longer proceeding? They never have explained why they needed to make such a large capital raise last year. That’s a lot of money just sat in the bank at the cost of shareholders who suffered the dilution.
5. To grant the Directors authority to allot shares.
Special Resolutions
6. Subject to the passing of Resolution 5 to disapply statutory pre‑emption rights in relation to the allotment of equity securities.
7. Subject to the passing of Resolution 5 to disapply statutory pre‑emption rights in relation to the allotment of equity securities for the purposes of financing an acquisition or a specified capital
investment or making a follow-on offer.
Thanks AJP - just noticed this too; stain removal for laundry.
Congratulations to our friends at MomRemedy, recognized by #BetterHomesAndGardensMagazine for the best stain remover
https://lnkd.in/eGRDPxDz
https://www.linkedin.com/posts/itaconix-corporation_betterhomesandgardensmagazine-activity-7197204216774303744-v0WP
ATB
AJP
Started: AJP08, 17 May 2024 12:19
Last post: AJP08, 17 May 2024 12:19
Report & Accounts and Notice of AGM
The Company's statutory accounts, together with a Notice of Annual General Meeting, are due to be made available on the Company's website (www.itaconix.com) and posted to shareholders on 19 April 2024. Copies will also be available at the Company's registered office, Fieldfisher LLP, 9th Floor, Riverbank House, 2 Swan Lane, London EC4R 3TT, United Kingdom. The Annual General Meeting is due to be held at 2:00 pm BST on 20 May 2024 at Fieldfisher LLP, 9th Floor, Riverbank House, 2 Swan Lane, London EC4R 3TT, United Kingdom.
ATB
AJP
Started: chilting, 16 May 2024 09:26
Last post: chilting, 16 May 2024 12:26
Yes, ITX has a secondary listing on the OTCQB index in the US to enable US investors to invest using dollars.
https://itaconix.com/wp-content/uploads/191218-OTCQB-listing.pdf
I'm pretty certain tha ITX has a dual listing in the UK and USA
A companies valuation isn't just about revenue, its about how the market values future performance, its assets, the management team and sentiment within the market that its listed on.
London is flat at best, the US market is much more dynamic.
ITX is clearly undervalued in London.
So how does moving to another market increase revenue?
Clearly other companies big and small are considering their options -
https://www.bbc.co.uk/news/articles/cl5k58x9g83o