Yes, absolutely agree with you…they need to start releasing some actual figures, together with projections. Certainly, when I used to be approached for business funding it was a requirement to produce a set of figures for the period in question, say 6-12 months. It was very much frowned upon if half way through, more funds were requested which should have been foreseen in advance. I was then faced with the prospect of either being bounced into increasing exposure to avoid an immediate bad debt or pulling the plug to avoid further losses.
Whilst placement may be easier than conventional borrowing, the discount has to be heavy to tempt in investors…the less information available, the heavier the discount has to be as it then becomes a ‘punt’ rather than an informed decision. I know this company operates in a higher risk/unpredictable environment compared with most businesses, but it has been going for a while, is becoming more established and therefore it should be possible to produce some sort of meaningful figures to allow investors to weigh up the ‘risk vs reward’, without giving away so much of the equity.
Anyway, sorry about being a bit vocal today…I’m out for the rest of the day as the sun now is shining and want to get out and enjoy it. Have a good one one and all!
Just on a simplistic, back of a fag packet calculation…yesterday the mid-price was 11.35p with 54,353,042 shares in circulation, giving a market valuation of £6,169,070. If you divide this figure by 63,728,042 which includes the new shares, it equates to 9.7p per share. You could add on the £750k to this figure, which in turn would take it up to 10.8p a share (although this wasn’t expected). So on figures alone the current price of 8.3p seems to be a little bit of an overreaction, but market sentiment is a funny thing!
Three steps forward, two steps back I suppose, but I know what you mean…I seem to remember the placing last year Sept/Oct was around this level, but dropped down below due to a major shareholder selling up at the same time and a huge surplus of shares on the market. Hopefully, the larger shareholders will stay on board as they were probably offered the new shares as well. Also all the Tek companies have been progressed still further and are closer to fruition. No doubt we will find out who has invested under the notification of major shareholders around the beginning of August, if not before…hopefully, most of them will have longer term investment strategies in mind.
As I said before, I still have faith in this company, but they don’t make it easy for long term holders…unless of course you enjoy roller coaster rides!…a day traders dream of course, but that in turn puts off serious investors.
I don’t think you can go too far wrong at these prices. The share price should slowly claw its way back, but will be subjected to weeks of day traders ragging it to hell, until things settle down again. Yes, some good news may make that happen sooner.
Whist these comments below may seem a little on the negative side, I am still happy with my investment, although watching my % holding regularly melting away is always a concern…in my opinion the company is starting to become a little ‘long in the tooth’ for venture funding and would like to see it self-fund in the not too distant future, otherwise any new investor will simply demand higher & higher discounts with every new funding request…that’s assuming that the blind faith doesn’t dry up & funding continues to be forthcoming!
I suspect there will be another period where the share price will be supressed at a lower level as some of the takers of the new placement shares will ‘flog them off’ on a small turn to make a quick profit and will take time for the shares to find their way into long term investors hands?
I am far from giving up with this company, still have high confidence for its future as I think it’s going to be a good one. Probably 6-12 months required, but hope we don’t give too much away in the meantime in the quest to progress things quickly…I’m pretty sure the directors know what they are doing, will use these new funds wisely to ‘to further develop and progress with the commercialisation’, but no harm to give feedback from the existing investors point of view…with YellowJerseyIR posting on here, I am sure our comments are noted!
As always, like to hear other investors opinion!
These fund raising exercises are starting to become a monthly event! So, what do I make of it?
A quality line up of directors/staff, building various businesses, all of which have huge potential & heading in the right direction. Most of these directors/staff are used to operating in large companies with long track records where the focus is on the end result rather than budgets/forecasts/limited resources.
There seems to be a certain amount of naivety on how investors of small start-up companies tend react to constant dilution, especially at these low levels. With the lack of financial information to hand, it’s not surprising any new investor will want a good discount, especially as there are no projections as to future funding requirements and therefore the risk of further dilutions.
By information I mean things like, has the revenues from the service side made any further headway to covering costs? an idea of Lucyd sales figures, the size of contracts on Salarius and any interest in Guidents products? Perhaps some sort of forecasting/projections as to funding requirements for say a year in advance, rather than on an ad hoc basis.
Otherwise, new investors will simply work on the worst case scenario and want the appropriate discount to reflect the perceived risk. This discount will be effectively paid for by existing shares holders having to give away more equity than necessary, which in turn will put off further investment.
I am fully aware of the high risk nature of this business, but it’s starting to reach a point when they need to start to ‘bring home the bacon’ if not by actual dividends, by way of some firm results. The projections may also indicate when the company will become self-sufficient, rather than rely on the more expensive venture capital type funding.
I know it may be a little frustrating for the directors to operate with limited resources, especially with all these new opportunities around them, but there has to a recognition of the limited resources available…as I said before, they could probably make use of many times this funding, but we are not a Fortune 500 company with unlimited research resources. They need to bear in mind that companies in general tend to be most at risk/vulnerable when they are growing & whilst all the contracts may look profitable, a lot of companies fail because they simply run out of money.
It’s a tough ask, because no doubt if one of their companies is successful, the market will be immediately looking for the next one in the pipeline, so it’s a balancing act!
Post contuned above!
Interesting. On first glance, seeing our percentage has dropped yet again from 25% down to 21.7% was a concern, but the comments re uplift in value seems reasonable. Valuation @ Nov 2018 accounts for this company was USD 1,126,315 @ 1.27 equates to £886,862. If we hold 9.3m shares and the fund raising achieved 15p a share = £1,395,000, so an uplift of £500k. Furthermore, the people investing at 15p will be expecting a good return, so looks promising, although I thought we were fully funded following the relatively recent crowd funding of £500K April 2018.
I guess the old adage of having a small percentage of something huge, rather than a large percentage of nothing applies!
That’s my take on it, but it would be great to have others point of view!
I know what you mean! After 35+ years trading shares (pre Bigbang too), I still don’t fully understand some of the price fluctuations on relatively small trades. I have come to the conclusion most people have different agendas, some short term and need the funds back within a certain time or take a quick profit, some long term, some have confidence in a share then wobble, others can afford to ride it out and win in the end, whilst others borrowing money hold on too tight. Sometimes MM’s pull the price down to set off stop loss limits and attempt to freak holders out as they only make money when people trade…maybe there is a large order which we will find out later?… other times there is information we not party too until later, the list goes on!
No right or wrong answer…set your own agenda and try not to play with money you can’t afford to lose, especially in the AIM market!
There is no doubt these Salarius guys don’t hang about and I like the reference to ‘secured and DELIVERED’ as well as to ‘numerous’ other discussions in the announcement yesterday…larger companies tend take longer to make decisions re orders.
Then there is Belluscura, hopefully that will kick in towards the end of the year. Lucyd, it would be good to get an idea of the sales figures rather than trying to gleam information from their pop up messages on the site. Guident…too technical for me, just have to assume they know what they are doing!
I suppose if you have confidence in the company, ignore the day to day swings as it should come good over the longer term?
Follow-on Order means any Purchase Order submitted from time to time following issuance of the Initial Order.
Looks like the U.S. snack food company is happy with the product and have ordered more. It would be interesting to know the company involved and the size of the order. I think our old friend Mr Patience is required, but sounds promising?
Sorry about that last post…Yes, I know sarcasm is the lowest form of wit, but in my defence I had just come back from two hours of medical tests and was feeling a little grumpy! I apologise to anyone who was offended!
Anyway, whilst the tech sector is a high risk area, it is also somewhere to achieve high returns (and losses!). A bit like the old wild west in the gold rush, its definitely not for anyone with a nervous disposition or can’t afford to lose the money they are investing. It not guaranteed that our guys will get it right, but to me they seem to have the right background and experience to make these predictions. I certainly don’t throw money around as if in a casino, but do as much background research as possible and then take a calculated risk. I continue to be happy with my decision to invest in this company and feel it is just a matter of time and patience!
I do not pretend to have detailed tech knowledge, but instead have many decades of experience in judging peoples characters in business. To me I see a quality line up, with all the right experience, connections and intentions. Perhaps a little weak in raising their profile, but this is improving. Having said this, I would prefer it this way, rather than the usual AIM type director enthusiastically spouting a whole load of nonsense!
Hum, that sounds like a very difficult decision to make as to who to believe and will struggle with that one!
An unknown poster who can’t spell or
The chairman who was served as CEO of Siemens Networks USA (NYSE: SI) and Aviat Networks (NASDAQ: AVNW). He served also as a Senior Executive at Nokia Siemens Networks, North America
One director who served as Executive Vice President of General Motors and President of the Cadillac Motor Division, President of Infiniti Motor Company Ltd, President of Audi of America Inc., and President of Audi Japan.
The other director who helped create General Motors mobility division, “Maven”, and led all operations as COO, and was a Vice President at Zipcar, where he helped pioneer the brand globally. Avis Budget Group acquired Zipcar for ~ $500 million. Dan is CEO of Zagster, the micro-mobility company that operates 250 programs in 35 states.
All three following the developments in the autonomous vehicle space closely, working for very little, but stand to gain a lot with success/performance.
Whilst nothing is a certainty, I know who I would put my money on in relation to predictions…oh, I already have!!
Oh, forgot to mention that having purchased a pair of Lucyd loud glasses before Christmas for a teenage relative, looks like the Loud 2 new designs are coming out shortly from the email I received…no doubt I will come under pressure for an upgrade!
Whilst I am not a cool dedicated follower of fashion, I can see the attraction for the under 50s! The performance is impressive, but I am not sure I can get away wearing a pair, but never say never!!!
Email from Lucyd
Say hello to the new Lucyd Loud! Available in 10 innovative designs, this updated version takes into consideration the customer feedback that we received on the beta Loud. It features style and comfort upgrades, including a lightweight design that makes it suitable for all day wear. It will be hitting our e-shop May 11th, so get ready to upgrade! The beta size will still be available as "Loud XL".
I wasn’t expecting news from Salarius today. But perhaps a little uplift in relation to Guident re article today…seems these robot cars are not that far off after all?
Tesla says ‘robotaxis’ coming to US in 2020
Tesla chief executive Elon Musk said robot taxis could hit some US streets next year.
The billionaire entrepreneur made the bold prediction at a presentation to analysts in California on Monday.
Mr Musk said he expected regulatory approval in some markets for a driverless ride-hailing service that could use some Telsa's on the road if their owners agreed to take part.
"I feel very confident in predicting autonomous robotaxis next year," Mr Musk said.
Hi Ipswich, I understand your sentiment if you have been here 5 years and seen that decline!
With TEK only starting in 2014, you must have been here almost from the start. I have only been here 6 months, but decided to take a heavy hit on another share to switch across, because I like the prospects. In my experience, the first 18 months of any start-up is the most vulnerable time with a 50% failure rate, but then they start to find their feet after about 3 years. TEK on its own is now turning over 1M+ and will have a value in its own right and building.
Then there are the 4 other companies, all of which are relatively young but seem to be doing well, just requiring more time. There were more, but I take comfort that the directors took quick and decisive action to close off these rather than continue..it takes guts to write off things early as sometimes sentiment can cloud decisions.
Looking it from the TEKs point of view, I guess they have to make a judgement as to when to sell/float one of these companies. Im sure they would wish to build up each company to achieve the optimum value, but on the other hand are under pressure to get the first one away to build that elusive track record!
Funding. I guess further funds would speed this process and I suppose they have to progress things quickly to maximise the life of the patent? 46% of the costs are now been covered by service revenues which is good and in time it will be 100% Personally, if they do get one away, I would prefer them to retain a lot of the funds to cover future funding rather than pay it out in a special dividend and then have to do another placement at a later stage. Of course on the proviso that they keep things as tight as they do now.
Also, I would imagine with the IP search tool now in place, they must see many other excellent prospects and must get frustrated they haven’t got the resources to grab all of them especially as the patients are time limited. A bit like seeing a load of fruit on a low branch of a tree for the taking, but not being able to do anything about it! Probably, they could make use of hundred times the funding, but have to face reality.
Certainly this is a more risky share as it is dealing with new tech, but also very interesting as you never know what they are going to come with next!
Yes I agree, Guident Ltd valuation does stick out a bit, but from todays Align Research document -
‘Further details on how the valuations were carried out will be released with the publication of the full annual report but we re-iterate that portfolio companies are either independently valued by industry experts, valued at a recent arms-length funding round or at the company’s cost for the acquisition of the IP rights – all conservative and solid bases.’
Full report around about May (last year 4th May) or could be a topic for the conference call!
Interesting set of results showing good progress, a huge amount of positive news and moving forward nicely.
As I tend to have a more cautious/pessimistic approach than most, there are a few points that may dampen the positive news as far as I can see.
1. Service revenue for the first half was $639k, but for the full year $1,040K. Making the second half $401k. Still good, but a reduction on the first half.
2. Lucyd. First half reduction of $1.3m due to fluctuations in crypto-currencies. Second half a further reduction of $1.7m, assume for the same reason, making a full year total of $3m. I believe steps have already been taken to stop any further deterioration.
3. Guident valuation of $8.5M, I assume this is realistic.
Even taking these into account, the share appears to be very much undervalued. No doubt we shall see what the market thinks over the coming weeks/months. To be honest, taking my long term investment strategy, I prefer to see a steady increase in share price, rather than a massive ‘flash in the pan’ increase, only to come thundering down a few days later. I am very happy (unusual for me) with progress to date and feel it will accelerate over the next six months, hopefully meeting their forecasts and avoiding the need for a further equity issue.
Still more than happy to be part of this dynamic exciting company, which not only seems to focused on shareholder value, but also on improving the general quality of life by bringing on new discoveries. Nice, makes me feel warm all over!
To clarify the future funding point, it will always difficult to get right, but my assumption is that some forecasting was carried out at the last placing and sufficient was raised?
It would be easier and less capital required if they had simply selected one company to bring on, sold it and then used the funds to fund the next one or two. But, if each one takes two years, whilst safer, this method would take a month of Sundays to get going. Having said this, if this one company was unsuccessful, it would be a problem.
Instead, they are bringing on a number, all of which will have different time frames which will take up more capital.
Just to simplify the explanation with an imaginary example, assume they have four companies, each taking two years, in effect rolling out one success every six months. The maximum funding requirement would be the day before the first company to be sold. This is because the total capital required would be the sum of the two years funding tied up in the first company, one & half years in the second company, one year in the third and six months in the fourth. If one failed, at least there would be another one coming through soon, so safer in this respect. Therefore, the work in progress value is steadily increasing across the companies assuming it has been spent wisely adding value and will be unlocked at some point.
Also, they mention they are trying to select companies that only take a few years to bring to market, as opposed to other investment companies taking five/six years, so no doubt some slippage is to be expected in the early stages.
There are many variables, some may take longer and others shorter, but I guess they are working towards building up a pipeline of companies coming to regular fruition. The question is when will the first success be? Getting in at this early stage is a risk, but the entry point will be considerably cheaper than waiting for the first success or investing in a different established company.
I see this as a longer term investment and not one for short term / day traders which may explain why some are getting frustrated… of course that is just my opinion, have been wrong in the past and hopefully am not just trying to convince myself…there are no certs. in this world, but should see some success this year which will settle some nerves?
I think you have to have faith with this one and give it a bit more time! Quality line up of people, a number of great projects hopefully moving forward and reaching fruition this year.
With no track record yet re floating/selling, I guess the market is not giving them the benefit of the doubt. Once they get one of these companies away, it should give them capital to roll over into other prospects & get motoring. I guess the threat of another placing/dilution hanging over it could also be holding it back if further funding is required in the future, although the service side is covering 40% of outgoings and growing. Im sure, once they get one under their belt, it should fly.
Lucyd sounds like its doing very well, but a little exposed to the cryptocurrency market for my liking, the fluctuations potentially eroding its profit margins? Hopefully they have taken steps to mitigate this by now. I purchased a pair of Loud glasses for a relative (trendy female late teens) and she loves them. The only complaint from me is, because she is small, there is a certain amount of noise bleed as the arms are not tight against her skull…can be a bit annoying if the sound is turned right up and I am sitting nearby…but she doesn’t care and thinks they are great!
As I am a lot older, perhaps I am a little cynical about things like tecframes/cryptocurrency, (only switched to a smartphone a few months ago!) but I am willing to embrace the future in my own time. After all, if I was an optimist, the fluctuations could be a positive!
Salarius remains my favourite…I understand this one and the huge potential. I still take comfort that one of the directors invested $50k of his own money for the 2.5% share. May be he feels that his appointment could be relatively short term if this is sold on, but will receive a good return on the uplift in the share price instead?..who knows the reasoning, no doubt time will tell.
In other words, no you are not the only one to see the potential!