Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
In this market paying a token dividend would not make a scrap of difference to the share price as this is not the way the market works. The markets operate solely on fear, stagnation or optimism and, whichever is in vogue will determine the share price unless the company concerned is showing spectacular growth. One has just to look at the Woodford funds and the mess that they are in to understand the fear factor. We should be very grateful that the company is in very good health and once the optimism returns to the market the shares should more than double provided the growth rate is maintained. This has been my experience for the last fifty odd years and nothing has changed except for the duration of each cycle. Yours Able!
Max! provided the company can keep winning contracts like it and to be able to handle them by growing the company at a measured pace, all you need to know is the profit margin after all considerations. I realise we can not expect a comparable order intake for every year but so far it is impressive and the rate of growth is strong, unfortunately we need to get another set of figures to within reason establish the company's rate of growth with the exclusion of the recurring negatives. Yours Able!
After so many false dawns are we really on our way now? I must admit after so many disappointments I did wonder what on earth it would take to move the share price upwards. Thank goodness we have Leon running the show as he obviously understands what is required in this ever changing environment that has not helped the company over the last couple of years. At least we know the company is operating below the normal mining costs and should remain in business whatever happens in the markets.
Hi Truro Trader! The logic of the situation demands that is where the company is heading, because, if the directors are up to the demands of growing the company this is the direction they are taking. Why get involved in artificial intelligence if they are not trying to get the best results possible for the shareholders? Where companies go wrong is normally due to carelessness or an oversight or, the individuals are not up to the tasks. I would further suggest that we are now on a very exciting journey that will take time and I would like to be around when it happens. Obviously time is most precious and needs to be treated with respect and I have been with TPG since the Corac days averaging down and fortunately in profit. The failure of the compressor was typical of what I am talking about due to a distinct lack of knowledge on airborne contaminants and how they should be handled. This is why we need top class people who fully understand's the various subjects likely to be met with. With those conditions met you will gradually see the company turned into a multi bagger. The best of luck to you and others in the future from Able on planet earth!
At the present time the figures that I have presented are pie in the sky but, if one wishes to achieve the multi bagger that is what the company has to be aiming for. I know the most we can realistically expect is £6 million pretax next year but, what I am looking at is (a) organic growth which the company is producing. (b) the benefit of the synergies created.(c) absence of loss making. (d) the much enhanced position of a company likely to become a major and who will be taking on bigger contracts (e) The likely hood of another takeover. The main point being the company so far have been working on a carefully thought out plan and it is working. They are taking their time on each move so far and it is working well. Finally this is where the multi bagger comes from spotting opportunities that others have missed. This is also the reason why we much watch events closely and be ready to jump ship should anything go wrong.
From my own perspective the company needs to be able to demonstrate pretax profits of £9,000,000 is achievable in order to become a multi bagger. It all depends on no dilution, no consolidation,and continued growth as presently demonstrated. Where a number of excessive shares exist, a company's favourite ploy is to consolidate in order to get the institutions on board and I would suggest something like 200,000 shares could be targeted as the end result. Short term there is no merit in this kind of action however, over a period of two years the shares will then normalise. From here on the number of shares in issue will control the share price as the prospective PE will be the controlling factor.
I have no idea what holds a share price back but, I do know that where value is concerned sooner or later the market will realise where substantial gains are to be made and they will soon rush in and, that so far is my life's experience. As investors in logic we must be prepared to sit and wait for things to happen as they surely will and I could quote a number of companies that faced similar treatment, take Costain for example! For instance, have you ever seen a fast growing company yield some thing like 50% and your answer will be no. The only drawback for us is do we have time on our side?
Further to my previous posting I have glanced through the annual report and can only conclude that the company is extremely interested in artificial intelligence more so than they have mentioned to date. I believe that while they are already somewhat involved, they will be looking for another entity in that area in order to establish a firm presence in that sector. Surely the very fact that they have established such an interest in that area suggest that they will be taking their time 1/2 years may be, in establishing a suitable takeover to merge with that interest.
It is always disappointing to be a holder of shares for a long time selling up however, that is the way the game is played. The best way to do it in my opinion if you intend to do it, is to jump ship while most shares lack interest and allows the best chance provided you do not buy into a dud. We have never experienced a market like this because governments are so cash strapped witness the world debt that the only bull market that can be generated is for companies to take advantage of the trade left by failed companies. The fact that T.P Group is so strongly placed and they have such a strong cash balance signals to me they are a share to be held not sold! We just have to sit things out and wait for better times and, I do realise some of us will miss out due to natural causes of nature.
For those that do not understand English, I merely referred to Tom Winnifrith as being a good company doctor not a good share tipster. I do follow his comments on failing companies and find that he is good at it. Finding winners all the time has eluded all the so called professionals including those of us who think we know what we are doing and, at best we hope and pray. We simply rely on the BOD to make the correct decisions. Unfortunately ever since the corporate takeovers began in the fifties,the directors have sought to line their own pockets at cost to the shareholders who have themselves to blame for joining the various institutions thinking they would be better off and now those institutions are calling the shots,witness the sale of Cadbury's for instance.
First and foremost I am not a fan of Tom Winnifrith however, I do respect his ability as a company doctor. I had the experience of witnessing a board of directors being challenged by him about a looming cash crisis that no one appeared to notice. Time and time again he challenged them until they admitted that he was correct. Since that time I have noticed that he does have an expertise in failing companies and should not be criticised in that area. Unfortunately, Versarien is a very unusual company and needs a great leap of faith however, against all the odds to date has managed to keep it's finances under control and a reasonably well controlled news flow. I notice the experts try to understand the company and, until the balance sheet is fully understood they like us can only guess but, on top of it all know that the returns could be massive.
Max! it looks as though we started from the same humble beginnings as I started off with an apprenticeship in sheet metal work with W S Barron,Bristol Road, Glos. later to become Simon -Barron. Simon was based in Cheadle Heath, Stockport, in your neck of the woods some 60 years ago.
Dar-! in my experience a token dividend has never been important to the market unless payment catches the market by surprise. You do not fool the market as a rule and, if the company has come unstuck at some time then it takes twice as long for the market to regain it's confidence. The most important thing is for the company to maintain it's growth rate and sooner or later the market will respond normally, with a dividend announcement. Yes! agreed the PR leaves a little bit to be desired but this is only a bit of a smoke screen. The main problems we are currently facing is the probable state of the market over the coming months and fortunately we are not exposed in any sudden fall outs like many will be. Do not forget the directors were awarded share options that they will want to protect. Able!
Max! it looks as though we started from the same humble beginnings as I started off with an apprenticeship in sheet metal work with W S Barron,Bristol Road, Glos. later to become Simon -Barron. Simon was based in Cheadle Heath, Stockport, in your neck of the woods some 60 years ago.
Dar-! in my experience a token dividend has never been important to the market unless payment catches the market by surprise. You do not fool the market as a rule and, if the company has come unstuck at some time then it takes twice as long for the market to regain it's confidence. The most important thing is for the company to maintain it's growth rate and sooner or later the market will respond normally, with a dividend announcement. Yes! agreed the PR leaves a little bit to be desired but this is only a bit of a smoke screen. The main problems we are currently facing is the probable state of the market over the coming months and fortunately we are not exposed in any sudden fall outs like many will be. Do not forget the directors were awarded share options that they will want to protect. Able!
Thanks for the update, I obviously missed that report and it also answers questions surrounding national security as to why the company is short on news flow. From my understanding this is a massive new field of operation witness America putting this at the top of their lists. Space and ground wars being the order of the day and whatever comes along with it?
Max you write like a young one, what is your secret as I would like to know especially as I went to the bookies on Saturday placed a bet meaning to back Mullins horse each way and, after I left the bookies I checked my ticket and found that I had forgotten to write £5 ew. needless to say it was £10 win only and instead of being £5 up I finished up £10 down.
When I wrote a post last, I mentioned that the board was interested in artificial intelligence, I never realised the subject was so diverse and within my line of reasoning. On the news of late I keep hearing or reading about artificial intelligence being used in different sectors and, from my perspective is the reason for what appears the BOD are dragging their heels as the subject is relatively new territory and, will not be an easy task identifying the right target. For those investors invested in the company do not lose heart as none of us can control the share price. I have just experienced a share moving ahead this week after I had wondered for a long time just what does it take to get investors interested. Many times over the years I have found this to be the case however, once they get noticed they soon cover what appears to be lost ground.
As usual the share price reacts just when I decided to put the shares on the back burner, because I was convinced so many times that the shares was on an upward trajectory and added accordingly only to be disappointed. It just proves that no matter how well you do your homework it is nigh impossible to get your timing right especially in the area of commodities. My consolation is that patience seem to be paying off.
I am a trifle disappointed with the reaction of posters to the results especially when the company refers to getting involved with the development of artificial intelligence. For those not acquainted, artificial intelligence will be used in future wars. My other point is the results are exactly the form for a company in recovery mode bearing in mind at what stage did the loss making cease and how much cash was used for work in progress? Surely the question has been answered on the takeover trail by the company announcing that they are still actively pursuing the right type that has to strategically fit in with the group. For my money, I believe that artificial intelligence will be uppermost in the company's eyes.
Market reaction exactly as expected due to the lack of interest in purchase of shares ahead of results. These shares will motor when a bull market is activated and sadly that will not be for a while. My normal valuation for results like these would be in the range of 10p to 15p however, it is the same conditions for the rest of the market. For those sufficiently interested we have the time on our hands to weed out the duff material in our portfolios and acquire similar quality stock in other sectors. I have always found this method is the best approach to the next bull market and the most important factor is time and, unfortunately I do not have that benefit. Of special interest to me was the comments over "Brexit" and the confidence exuded that is so different to the news of late.
After studying the market for the last fifty odd years, I am forced to conclude that if we do not get some upward price movement in the share price in the next seven days the results no matter how good will act as a damp squid. Should the results be good as we expect them to be then, we have to accept that the market is not at all happy with forthcoming events and extreme caution is advised. I have witnessed this type of situation many times before with all the bear markets and, as long as one is diversified we should hopefully enjoy the picnic when better times appear.