Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
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The sell-off may well include institutional investors who subscribed at 40p such a short time ago based on the same assurances as the rest of us. They have the resources to simply move on, unlike some of the rest of us!
The arrival of Maddock and Easton has (hopefully) ushered in an era of professional management sorely lacking in the core areas of manufacturing ops and finance. But it is not enough, we need a change at the top, and whilst in a larger plc Johnson would be out the door after the multiple failings of last 24 months, it is the Chairman that needs to go as he has failed to manage the CEO, failed to manage the board , and failed in his duty to represent s/holders interests.
All this dumping means that people close to the company are selling as well (id guess). Thats the concern here.
I think this has been oversold, volume of shares sold / bought in last few days vs number in issue 9 million vs over 240million in issue . I guess the problem is total uncertainty every time a production update comes out it is way down on previous estimates it was always going to be a problem ramping up production and until targets are set and hit or exceeded this share will be in the doldrums and cash raising is increasingly difficult as the share price drops either from finance houses or existing shareholders. Difficult to know whether to bail or cling on . The board needs to be honest and set realistic sales goals.
It seems to be stabilising around 11p now. I'm adding.
SP is in free fall
Completely agree - changes need to be made and quickly to assure the customer base & shareholders that there is not a systemic problem. That means (1) Replacing the chairman (2) Laser-like focus on operations, systems, people (3) getting finances sorted (4) recalibrating communications and making sure that we never have a repeat of what has been a disastrous string of announcements from Johnson.
Likewise fiah. Was fairly disappointed with the raise at 40p, so the thought of 10p or similar is a shock to the system. The thought I am clinging on to is that despite the poor management and, especially, the poor communications, the future of SCE arguably looks brighter than at any time, as long as they can truly get to grips with the manufacturing issues and that the confidence of customers is not irreparably dented. The order book and pipeline are strong and cash is depleted in part because of the delay in production ramp-up and in part because investment is being made in capacity for that order book and pipeline. Is it time to be greedy when others are fearful? The market cap is currently sub £30m, which is crackers. But then I come back to where I started. I also never foresaw this level of share price in any scenario other than a fundamental issue with the product, such as safety.
Never imagined SCE share price would get this low, bitterly disappointed, undecided whether to average down though, great product but what is happening with management?
No chance of an equity raise at 15p, that's over 10% premium to current SP and the markets are dire, particularly for those seeking capital raises with current interest rates. 10p more realistic and that's if the SP doesn't fall further
Hi Guys, Having dealt in Automotive for many years I can tell you there is zero chance of an automotive customer providing finance here, it would create far too many problems ethically in their supply chain and procurement functions. The only option is a equity raise hopefully at around 15p
Would an OEM really lend? .......... I think OEM10 is a possibility as they seem closer to the company than most standard business relationships. They were involved in solving the furnace issues and wanted ST to build their second production facility close to them in the USA. They now have £200 M in contracted orders with ST so the sooner the company is financially stable and able to focus on capacity expansion the better for everyone.
It's still on the watchlist for me because of the massive potential.
The funding is key imo. The capex loan seems likely to close shortly. But how to raise working capital?
Would OEM really lend? It would be a significant change of dynamic in what's basically a supplier relationship. Might they just change supplier instead (despite the exclusivity and rigorous process)?
If SCE raise, the SP will likely follow the price, even if it's small and to keep the lights on. Imo wait to see who'll back this and on what terms/price. That'll indicate how the market views the many potential issues here, surmountable or not. Then see where the sp settles.
Not long to wait.
Zeus has suspended forecasts because the ones they put out 4 weeks ago as house broker (guided by the company) turn out to be a pile of dung. Superlative management by Bundred and Johnson......
Surely this is a financial hic-up?
Its bleeding out.
The perfect storm of a raise looms.
Unreal, I thought this was a safe haven of sorts. I guess they dont exist.
The fallout of Friday’s shambles continues - Zeus forced to suspend their analyst forecasts.
And that's not counting the extra dilution from the cash raises. So well done the Chuckle Brothers, Bundred & Johnson for prove yet again that a great business can be undone by useless management
Thank you very much
The NED's have badly let shareholders down as they have access to any information they needed but seemingly never asked the right questions when they should have done. They deserve the boot.
This was compounded by executive and senior management apparently being out of their depth as to the feasibility of and the management of the process of untested technical change in their manufacturing process.
At this price circa 15p they may well be able to raise new money but they may l need to be much more convincing than of late that they do actually have a firm hand on matters. The alternative is a bid from some source that can deliver the goods and as a shareholder one can only hope if it gets to that state that there are more than one interested parties.
As requested a transcript of the Saturday mail stock watch.
Surface transforms which makes carbon ceramic brake discs for cars lost more than a third of its value after it lowered its sales outlook. The AIM listed firm made £1 million of sales in October. Its best month so far this year, but said this was still less than expected, and challenges in production mean the group will reach the required manufacturing rate later than hoped. It Therefore reduced its sales forecast for 2023 to 8.6 million £ having made 6,300,000 to date shares plunged 31.9% or 7.5p to 16p
Although I also saw the Stockwatch in Saturdays Mail online from memory. As already posted - Nothing we did not already know.
But I'm sure the company will easily raise some funds if needed for their production to commence & their OEM 10 contract worth £100m. I liked their statement '' They have been selected as a tier one supplier of a carbon ceramic brake disc '' So it has to be a gift at below 20p. Should recover fast when any funds are raised if still required.
Glad to have taken a large profit here before the drop.
Hi Numptypi,
Could you please give me the gist of the mail article from Saturday, I cant find anything online on it?
Does Johnson have Toto Wolff 's mobile number?