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Quite simply, Don’t. The bod have messed up on a grand scale since the company floated and all the while keeping quiet and releasing as little news as possible. You may get lucky if you invested now but it would be a huge risk imo. I certainly would not invest any large sums but if you wish to have a gamble why not try the lottery? At 60m to 1 the odds are probably as good as RM2, but with a better return for just £2.
I think I’ll wait to invest until after next years probable 100-1 consolidation
There’s now more than 10x as many shares though so 2p values the business at about £120m!
Loader
Around a year ago ...
Directors bought in at 75p, are we on the verge of something huge? Thinking of piling in Looks like we are at the bottom RNS very encouraging Anyone like to add?
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Still no projections or figures as usual....
The Company is pleased to also announce it has entered into a Phase 1 agreement for an initial deployment of RM2 ELIoT pallets through June 30, 2018 with a Fortune 500 company in North America following a year-long trial with this blue-chip customer's supplier network. In addition, the Company has also completed a major trial with a North American company and discussions on a large-scale implementation are expected to commence. The Company has also expanded ongoing trials with other major US-based customers.
Agree, though the RNS mentions one new contract win (no details of course, presumably small, but who knows). Good point to average down with a bit more info on the company and financing. The problem is the dilution - not sure why it was so HUGE - or why Woodford would want to dilute his own stake while participating, even if he is gaining majority control of the equity. At �.10 a share (roughly 600% increase from today) the market cap would be � 600M! What kind of valuation forms the basis for investing in RM2, assuming they can hold on and stay in business? No debt is great, but the CAPEX needed to grow could be enormous, so valuation here is really difficult - and hard to understand WHY the dilution had to be so severe, especially when the financiers (Woodford, Verlinvest) are also the majority shareholders? All a bit hard to figure ...
Still a lot of promises re Fortune 500 companies etc and little substance re real orders. This money according to Rm2 will last for only a year ! A stay of execution perhaps ?
No debt and financing means they've got a runway and enough of a story to get investment. OTOH, dilution and terms are a bit ludicrous -- and Woodford now owns 2/3rds of the company. IF there were big PO's around the corner then the RNS would reflect this --- there would be new investors involved (but there aren't) and the dilution would not need to be so high (again, another clue). So the takeaway is there is a bit muddled and am surprised at the levels of dilution and lack of new participating investors if a major turn around was just behind the next corner.
Agree that Woodford is so deep in here already that another few million will make very little odds ! This is a punt and there are a lot of ifs and buts .....
Yep, better than nothing. Diluted certainly but at least the pi�s have not been pushed out completely. This is going to give Rm2 the breathing space to either sink or swim over the coming 12 months. Cash burn is still horrendous but current reinvesting shareholders such as Woodford must see something in the companies future ? Still no dividend :-)
The dilution is beyond belief and reflects the reality that RM2 going into liquidation was the only other option --- Woodford now has control but has proven to be strangely incompetent at valuing companies, as his own holdings consistently reflect across companies of all sizes from FTSE 100 down to start ups. Maybe the company will survive, maybe it won't, but current equity holders can hardly expect much return given the share count and the fact that scaled expansion would require further funding, etc. But better than nothing, which was the only other option by mid-April.
$36m placing (dilution is horrible but better than zero value) Existing investors including Woodford subscribing for the majority of the shares. Lower cost manufacturing now based in Mexico and China. Walsh out. All we need now is a couple of decent contract wins. http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/RM2/13586042.html
everyone jumping off to save their reputation!!! they tried that when they are becaming non-executive directors. Useless the lot of them but bet they still took a pay check.
Despite the positive sounding RNS, the share price is tanking as we enter April -- does someone know something we don't? It seems if they were so close on either a big PO win or financing they would just announce it by now, especially if they are weeks away from collapse for the third time.
I agree with you wholeheartedly. �DIRE�, describes it nicely .......
For those that have been here long enough Shatter I think the term is "gallows humour". defined as: "Gallows Humour" noun - grim and ironic humour in a desperate or hopeless situation.
Where the hell is this RNS ?
Bought a few more and averaged down......in for a penny and all that :-)
Good solid increase yesterday. Just need an update on finance and contracts and who knows !!! Super multi bagger perhaps
Very good. Much belly laughter with that one :-)
Knowing this lot it was more likely Toys "R" Us.