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Let's hope we get to hear about them in an RNS. Porta need some positive news released, and this and the recent Thirteen Comms win could garner some attention.
Good comments Adastra. Game of cat and mouse today. 2 test trades from HH and mystery buyer.
I agree with your observations GT and agree that the Siemens contract is another good one in the bag. You already know my opinion of current Nomad Sanlam - morphed to Appleby - who have done nothing to promote Porta so I wont reiterate. A lot is happening at Porta as it transitions from a cash-hungry 2014/15 to a cash-generative 2016. The 2015 results have been pretty much telegraphed as rising EBITDA with costs incurred in streamlining profit makers and culling Belgium and Frankfurt. All cost savings will be seen in current year so it is the last 3 months trading and outlook that is pivotal to progress this year and will guide share price rise. I am frequently criticised for my optimism in the face of a suppressed price but I have given valid reasons eg Sanlam and HH selling as Porta doesn't fit remit for their VCT fund any more. BUT........ The businesses that comprise Porta have been growing revenue strongly from start-up and acquisition. Poor performers have been sold and strong growers supported giving bottom-line savings in the current financial year. Directors have the unique insight to horizon scan and I am sure that's why Steffan jumped on board in October and Gavin joins in July. These are big players in the industry bringing much talent and experience but also with a lot of kudos to lose if they don't perform. They have specific remits to attract bigger players now the stage is set and to dissolve traditional internal barriers for integrated and comprehensive communications. I am assuming that directors have been precluded from buying due to specific inside knowledge of any possible acquisition. We have just entered the statutory closed period with pending annual results within 60 days. THAT is why I think that the recently announced share incentive scheme is the real indicator of traction. It is the only means by which those who are driving the business can get exposure to the significant prospects they see unfolding as they have been/and are unable to buy shares in the market. Look at it - for every 1p the shareprice goes above 13p [the hurdle] the directors will get Porta shares to the value of just £420k [at March 2016 agreed 6.38p]. That gives minimal dilution for us shareholders but means that our shares will have doubled in price from today before directors receive a penny. THE IMPORTANT POINT TO NOTE is that this incentive scheme is NOT linked to MCap but to shareprice. I agree with GT that probably Steffan, Gavin or indeed Capital Access have awakened new initial Institutional interest and I suspect canny MM's are seeing this and taking stock on their books at this level as well as first movers. HH will hopefully sell out before 4th and scheme will be voted in shortly afterwards - that's when I expect a lot of price action [gut-feeling]. If underlying business wasn't doing well, why would you introduce the scheme now?? You'd wait for any bad news and then introduce it . Looks like the outlook is still reflecting February
My gut is Porta has found a buyer who intend to take a large 3-5% stake in Porta. I think they already hold at least a 1-2% stake. The new investor will use this period whilst the acquisitions happen to support the share price as HH sell up. Once the acquistions are done, the new investor is finished and HH have almost cleared their stake, then the directors will buy in and look to mop up leftover stock. This would also explain why the directors paused buying. (Acquisitions/new investor/HH selling up.). The new investor would not want the director pushing up the share price making their costs higher. See if I am proved right come May/June.
http://www.gorkana.com/2016/03/siemens-hires-publicasity/ Siemens has chosen Publicasity to handle the UK PR for its range of cooking, cooling and washing appliances, following a four-way pitch. Publicasity will work with Siemens to promote its cooking, cooling and washing products, which are manufactured by BSH Home Appliances, through consumer show exhibitions, sponsorships and media events. The agency will also promote the Siemens’ ‘For a life less ordinary’ message across all its categories. Sounds a positive new contract from another big name. Hopefully one of many new contracts to come.
Siemens home appliances have appointed Publicasity. Unable to post link from Gorkana. Nice big name for a client.
Well a great chance if anyone got in at 5.25p. Looks like someone is soaking up these shares on a daily basis. Can we expect an RNS from the mystery buyer soon?
Who knows what stock they have left. The positive is someone else appears to be soaking up a lot of this stock quote cheaply. All seems to be arranged. HH will offset the loss for tax purposes. Looks like they have cleared nearly 1.5m stock in just over a week.
Next week and the start of the new tax year should be a turning point for Porta. I suspect the rash of sells is reflective of HH desire to go before the date. The share should then markedly jump to reflect 2016 actuals. Just a hypothesis that fits the current profile. The MMs must be grabbing as much as they can at the moment to sell on at a nice profit.
Of the relentless VCT sell off by HH. Once cleared it will allow stabilisation and then rerate. At the work face the business is growing and the disparity between MCap and Turnover provides a better investment case than ever at current levels. HH decision to exit on grounds that Porta does not now fit in with its VCT fund criteria is creating a false negative. This should quickly be adjusted when their task is complete. Painful, but the end of this process will see growth funds quickly filling the gap as the 2016 growth emerges.
Bigger trades coming in now. 500k over 2 trades. Over 1M trades in the week. So that is 1M less they have to sell.
Another sign that most of the trades yesterday were mainly by large players gradually shift stock from HH to other investors. I wonder if we will see a lot of announcements after 7th April. Why announce a new II or clearence of HH stock before then?
I do hope that shareholders and potential holders have really weighed up the share incentive plan as it is excellent news for them. I apologise in advance for those who are well aware of the terms. Simplified, the directors with hands-on responsibility for growing the company are being given out-of-the-money A shares. These have a set life of 3 years till 16th March 2019 and a two year lock-in after conversion. They are worth NOTHING till the share price goes over 13p a share. For every 1p the shareprice goes above 13p [the hurdle] the directors will get Porta shares to the value of just £420k [at March 2016 agreed 6.38p]. That gives minimal dilution for us shareholders but means that our shares will have doubled in price from today before directors receive a penny. THE IMPORTANT POINT TO NOTE is that this incentive scheme is NOT linked to MCap but to shareprice. That is massively important to any holders at present or getting on board at todays level. WHY? Because it means that any acquisition has to be immediately earnings enhancing to keep the shareprice rising or the directors loose out big time. It's a great incentive scheme and I hope it's voted in as it will certainly encourage the big boys wanting high growth small-cap exposure. Its a huge vote of confidence in the capabilities they see ahead. You also have to ask why its being voted in now rather than later this year if there are any hiccoughs ahead - certainly would appear that there is a lot of good news to come in short order after this is voted through or they could have manipulated this to follow any bad news. The future looks bright imo as timing is everything.
In a way no office in Belguim could be a blessing in disguise with all the problems in Brussels at present. You could also argue that firms in Belguim need PR advice more now than ever? Double edged sword as any attack on Porta's office would of been a disaster. .One thought a friend of mine has is that Porta will wait till the renumerations are voted in then perhaps announce acquisitions. They'll want to be seen to be improving value. If they do something major before the vote people may vote against this. (Although Bob's 15% will swing the vote.) Typical PR stuff. Create a small drama and then come out with acquisitions that could change Porta and bring value to shareholders. Then pile in with directors buys too to breach gap to 10p. At present I think they need to get on and clear HH position if it is them selling. As for new II getting involved. Yes we really need some new backers. I just hope these planned buys and sells are the start of a new II coming in. See what tomorrow brings.
Nice to have some more positive comments here. The biggest problem has been investor communication as I previously explained. IMO solely down to Sanlam being so involved in their own internal wrangling that they totally ignored their clients. The biggest mistake Porta made was retaining them and now with Allenby. Time to cut loose. As you point out MCap:Revenue is ridiculously low, that's why we need a first rate proactive Nomad/broker with vision. Porta is one of the few AIM companies where they could make serious money if they look ahead. The instos will come once we confirm continuous cash generation. Porta have incurred additional overheads in rationalising Frankfurt and Belgium but these should be more than recouped by savings this year. We are now well into 2016 and things should be shaping up nicely for first quarter figures.
Disappointing but it will come back stronger. I had a nibble today just couldn't resist. The debt will be reduced at y/e will be lower. I wouldn't be at all surprised to see some debt converted. Enid's will be a lot stronger and positive Currently Rev against Market cap is a no brainier HH are clearly instrumental in making this stock the sale of the century That's my investor hat however the company do not know how to sell themselves as imho small cap funds should be queuing up at this price
The more I look at this the more it all seems planned. The price seemed to be held back on Monday. Price eventually dropped on Tuesday due to ISDX. Price has dropped today due to 500k volume. At which point almost 230k shares were bnought. There seems to be key interest around the 6p. I think we would all like to truly know how many shares are being put aside here as these kinds of trades should of dropped the SP much lower. The MM clearly know what is going on.
The current imbalance between sells and buys means that someone - either MM accumulation or an off-market buyer - is picking up Hargreaves stock. Just a matter of time till it turns. Has needed shedloads of patience, but come it will.
What we really need is a complete change of Nomad! Sanlam did virtually nothing to raise the profile of Porta from their appointment in October 2014 for 18 months due to internal wrangling by their [overpaid] qualified execs who were essential to their existence. Capitulation followed and the and the QE's transfer to Allenby. Meanwhile, Porta has been growing, streamlining and winning new business - all of which has gone largely unnoticed as result. What Porta really need is a first-class proactive Nomad lining up hungry institutions and telling them just what is being achieved here. You can't blame the insto's for not buying in if no-one is giving them the info. We are too under-the-radar at sub £20m MCap to elicit big insto research. Hargreave Hale is selling presumably because Porta no longer fulfils it's strict VCT [Venture Capital] criteria, not because there is something fundamentally wrong here. A breath of fresh air would certainly help imo.
Albeit that 150k trade appears as a buy i think it was actually a sell. As the price drops 20-30 seconds after that trade. 250lk sells a day and HH will be done pretty quickly here. They don't seem worried about price now. This share really needs a new II soon.
Eventually.............................................HH will go away............................eventually. Then the MCap can start to reflect the underlying business.
From your comments, I'll take it then that you haven't attended the AGM, talked to Redleaf PR, contacted anyone within the Porta group [employee or director] or done any real digging into why its posting continually rising revenue growth etc etc. You also haven't noticed the fact that I attribute a lot of the blame to having wonderful Sanlam as our Nomad last year. They spent a whole year since we engaged them in October 2014 doing........................................... which is why, despite a continual growth in revenue and a stream of positive news releases regarding progress, we went nowhere. With an MCap below £25m it is absolutely vital to get a proactive Nomad/broker to engage with new II's and promote the prospects. Sanlam were engaged in internal wrangling and Porta were consequently neglected. The Company is effectively 'under the radar' of bigger institutions who do not consider sub £25m AIM companies - period. Porta is held in HH VCT funds and we are now effectively out of its VCT remit, hence their selling as it does not comply with their investment criteria for the VCT funds. So we are in a void at present which is one of the few occasions where private investors can pre-empt the bigger players. IF, and I specify IF, as no-one should invest in anything without doing their own research, you see Porta rapidly progressing from cash-burn to cash-generation in 2016, then you will invest and be patient. There are numerous indicators that Porta is on the ascendancy if yo look. Old style PR is dying. Integrated international communications embracing all aspects of company interaction and engagement with its clients, public and suppliers is growing rapidly. Porta is firmly positioning itself in that sweet spot and is winning clients. Porta is NOT a one-trick pony - it consists of nine interactive companies all in the process of seamless integration. LSE boards are all about investor comment and engagement which is great, but at the end of the day it boils down to research, research, research. Ring the companies, ring their PR, ring their clients, attend the meetings, visit the HQ, question the BoD etc. Don't just give vacuous comment. If, as you say, you are a Porta investor sitting on a loss, then get proactive - the BoD are equally frustrated at the lack of performance in the shareprice versus progress at the workface. Eventually.......and its been a long time dawning.....the II's will start to see the progress being made here in this pivotal year of 2016 and they will start to buy-in.
And you continue to ramp this to no avail. The share rises 3% and you think it's company transforming! Ok at the the share price!! A major ii is selling out and no one is buying in.....doesn't that tell you something??
Looks like all of the Porta companies are revamping their client online interfaces. Looking a lot more slick and engaging as Porta focuses on its integrated and international approach. Example below: http://publicasity.co.uk/
Well Easter is nearly upon us. So unless they plan to announce an acquisition tomorrow I don't think there will be much news until April. Patience is the key. 500k of shares were sold in last 2 day. If all 350k was HH that is 1/35th(?) of their stock. We have no evidence to date their VCT has sold any stock. I believe it is held with private clients and Maborough fund at present. The VCT only holds 6-7M between the 2 of them. Leaving 5-6M elsewhere. It's all guess work really untill the VCT publish their accounts. (Months off.)