The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
As announced in today's RNS, Dowgate Capital are appointed Joint Broker for REAT.
https://www.lse.co.uk/rns/REAT/appointment-of-joint-broker-c40tf0wff8806fp.html
Most likely a placing to raise funds for expansion or acquisition because REAT don't need the funds for working capital.
Dowgate Wealth recently upped their stake in REAT to 11%, so they have a dual interest here, probably looking to increase the Dowgate stake and possibly take shares in lieu of payment.
I just hope it's not at a ridiculous discount.
That's the thing about a progressive dividend policy, they're going to keep increasing it.
If they said, a year ago, our share price ought to be £10, so we're going to pay a 4% divi based on that share price, that would be terrible management.
Who can predict share price movements and macro economic factors? And who would count their chickens before they've hatched?
It's far better to start low and raise the divi when more comfortable. It's sensible management. That money isn't going anywhere, and should be earning interest for the company too.
They can always pay out special divis at a later date.
How would the share price react if for some reason YU started out paying a big divi and then had to cut it (even for reasons outside their control) ?
Company directors want a nice steady rise to the share price, rather than sudden sharp spikes up and down
YU have sensible management that I trust. Patience is all I need. I am relaxed here, I don't need to monitor the sp constantly every day.
Licensing, by its very nature, will always be lumpy. Think of it as the cherry on top rather than a core metric.
Everything that is under Games Workshop's control is doing fantastically well. Very few companies have thrived during Covid/Brexit/global recession like GAW have. It's a beast!
Divis still rising too :)
I would imagine that lines of communication between the board and Richard Sneller are very much open if you look at (a) how much he was invested before the placing, and (b) how much he invested during the placing.
Clearly he was sufficiently satisfied to not only retain his holding but to increase it. He has a long-term view, likes what he sees, and doesn't need his hand held like a nervous PI on the Internet.
The share price action in CNIC/TIG is baffling. Steady growth, top tier clients, solid management. But sp continues to languish at the bottom of the 115-130 range.
Eventually this will be trading at much higher levels, but trying to predict the timeframe is tough. Thankfully patience is all that is needed.
STL, that's my thinking too, and I'm taking it to mean that SCE is still optimising the outstanding issues.
As frustrating as these repeated speedbumps have been as an investor, it sounds like SCE are much more forthcoming with their actual clients, who are okay with the timescales.
The investment case is so compelling, and the risk/reward profile at these prices is fantastic, imo.
Maybe, but there's only one real reason why a board member buys shares on the open market, and that's to make money on the deal.
Short, medium or long term, Bernstein is very confident of turning a decent profit on shares bought at 16p.
Ianbt, you appear to hate the 3 shares you consistently post about: APTA, ABDX and AVCT.
Why do you own shares in these companies if you are so unhappy? Why not invest in companies that you feel positive about?
Exec Chair, Richard Bernstein, is certainly keen to take advantage of the dip in share price with two more large purchases in the last two days. He definitely has skin in the game with over 18% of the company, and he's still buying on the open market.
I'm very positive on this company's prospects. If the Trading Updates keep showing that positive upward trajectory into profitability then the re-rate will be big.
But someone seems desperate for a bit of Xmas cash this morning...
I can feel the board's excitement from the RNS. MSALABS CEO is "thrilled" to announce this.
This isn't a small contract, dipping their toes into the USA, this is a big deal. The biggest deal in their history.
This is also a showcase of their state of the art hybrid facilities. Others will be looking on with interest.
Covmutley, ITX's customers are very sticky, and it's a market niche that will only increase moving forward.
Expect revenues and margins to increase substantially over the next few years.
The question is not whether ITX will be successful, it's just a question of PIs positioning themselves before take off. Some think they have time before the big re-rates ( and they have been right so far, in a very risk-off market).
But as the market bottoms and starts to recover, stocks like ITX (pre-profit but on the cusp of profitability), with bombed-out valuations, will be the ones with biggest multibag potential.
I'm not taking the risk of missing out on the growth, I can be patient.
Hi AJP, the gpm at FY22 was approx 27%. The recent TU said margins are improving, so I went with 30% gpm.
My calcs assume no other margin improvements during the next 2 years, as I am looking for a baseline scenario.
Of course any improvements from e.g. reduced global freight costs, or scale, will only improve the bottom line.
Based on the recent Trading Update, and the revenue estimates given by the company for FY23, 24 and 25 we can make some armchair forecasts.
I will estimate conservatively because this is in keeping with the way the board report, so this will assume no major improvements in margins, and (barring any foreseen disasters), this should also be the "worst-case" scenario:
FY23 - based on at least $7.7m revenue: loss of $1.5m
FY24 - based on $9.5m revenue: loss of $0.9m
FY25 - based on $12.5m revenue: profit of $0.5m
As of June 30 2023, ITX had $10.9m in cash, so plenty of runway to see the company through to profitability, with plenty of spare cash for expansion/investment etc...