London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I think the next 3 to 6 months will see some good shareholder returns for new investors and those that are averaging down now that positive sentiment is returning. New high profile director appointments, fund raise out the way, good interim results expected within 3 weeks, big PR drive leading up to Main Market listing which should now only be weeks away. the quiet period was tough but I think we have turned a corner and current price presents a fantastic opportunity.
Understand all those positive aspects to which you refer, but what about the 23% dilution resulting from the raise and also the ongoing paying of suppliers in shares.
Dilution will lead to a lower share price short term but the paying of suppliers will suppress the share price for longer as we will continue to see them flipping into every rise.
I think you will find that the SP and the company is severely undervalued down here.
We do not know how many shares have been issued to suppliers, whether they are locked it or not, but they will know better than us, what the ride ahead is like. so it could be minimal, nevertheless an investment in a company like this with a valuation circa £10m is way too cheap.
See this as a multibagger from here.
This will go one of 2 ways. Either the board will be proven right in their spending decisions and it will fly or it will go bust trying. There will be no in between. In my opinion LH continues to be high risk. We are in for a bumpy ride and this share is not for the faint hearted.
Of course, we could get an absolutely amazing set of Interim results later this month which set us on a course to greater growth!
The issue is the board release only the minimum information so we are flying blind most of the time. Personally I prefer it when companies value and demonstrate transparency rather than the rather opaque world we live in here with LH.
Don’t get me wrong, I’m a supporter and LTH but some of the decisions made re marketing and cash raises continue to give me concerns.
There was a video call with Love Hemp over the weekend.
Their strategy is to invest heavily in marketing now to become a brand leader. This is funded by the money made from the sale of products, i.e. the gross margin. As a result of this spend the company does not make a profit YET, thus raises are necessary to fund business day to day. It is no secret more raises are to come.
The alternative would be a much slower, organic growth, which may allow competitors to take more of the market, restricting growth. So they invest now to build a brand and raise to bolster finances to continue to enable the company to meet its aspirations of a global company. Its like me getting a bank loan and sticking it all in my pension at once and slowly repaying the bank loan.
Whats our MCAP now - 4 million? IMO this could easily be many multiples in the future.
Market Cap: £10,364,738
ISIN: GB00BMDY1P48
Par: 0.1
Inst Type: Common Shares / Stock
Symbol: LIFE
MIFID Status: MTF
Tradable securities in issue: 942,248,881
Sector: Financial Services
% price change since listing: %
% daily price change: -12.00%
https://www.aquis.eu/aquis-stock-exchange/member?securityidaqse=LIFE
"Dilution will lead to a lower share price short term but the paying of suppliers will suppress the share price for longer as we will continue to see them flipping into every rise."
Companies House is a telling story of the cost of paying off the suppliers with shares clearly at a discount to the share price.
Personaly I would like to see a little less spent on promotion and to pay off the suppliers with cash. In todays day and age social media is the best and most effective way to self promote with little cost, maybe they should be taking more advantage in that space right now.
https://find-and-update.company-information.service.gov.uk/company/11797850/filing-history?page=1