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"Forgot to add also, what is stopping "an investment firm" through 3rd parties or whatever selling some stock just before the end of the month..so the share price isn't hitting or above 0.77p."
We will be using the 20 day weighted average to avoid exactly this kind of attempted abuse.
Lanstead do not benefit from a falling SP. Each month they make an installment based on a discount to the 20 day average, and they want the SP to be around the same or higher than the average to benefit from the discount and sell to cover the payment. Or they hold, and like all holders they benefit much more from a rising SP over time.
This is a win/win for Landstead... they get the shares based on a baseline price of 0.55 but will actually pay 25% less for them because if the share stands at 0.55 that is 25% below the 0.733 target price. Whether the price goes up or down they will always be paying less on the monthly installments than they can sell the shares for on the same day.
On the other hand it does mean the board are either serious about a sustained price above 0.733, or else it's a last ditch effort to cover their salaries for a few more months. I don't see much in-between. I do hope it's the former but if they had any very good news imminent I think they would be better to release the news and then find funding at a higher base price, so I'm not holding my breath for positive news very soon but hopefully they are serious and will deliver in the medium term.
@sharebel if share prices were built on those good fundamentals I'd have a better looking portfolio, but in fact several of my main market holdings are being suppressed by negative sentiment that has no grounding in fundamentals at all. But my point was that it's a reach to suggest a £13m valuation is overblown by sentiment in the broader landscape of so many $1bn+ valuations based on only the same soft footing as NNN - IP, patents, statements of intent, but little to no revenue. London sees companies valued at more than £13m on little more than a decent pitch deck.
If NNN was still trading more like 2.5p, I'd agree with you.
@davey50 exactly. You're guessing. You have no idea what their personal circumstances are. Five grand could be every last penny Dr Cave could pull together at short notice if, for example, he only had a short window to buy before being locked out by the rules.
@sharebel Actually there are plenty of businesses with much higher valuations on much less substance than NNN, everywhere, but generally not listed yet. There is no revenue, but there is the IP, JV, MOUs - companies can build unicorn valuations on these things. Not that they should, or that we want to see it here, but it's a straw man to argue the valuation relies on sentiment because, well, so does every single share, on every single market, everywhere.
Evelyn Bourke was compensated to the tune of £1.8m in her first year as CEO of Bupa and stood for 4/5 more years after that. She's loaded. he would be both colossally expensive and quite likely have nothing to offer a company this small, at the coalface.
I am long on this company but let's get a grip people.
I'm not saying that I necessarily agree or disagree with the valuation being right, but why is the negative argument always about sales? Shall we reflect on the value of, say, Twitter before it made revenue? Valuations can be reached any number of ways, in this case IP and prospects. If we had booked the sales by now the price might already reflect that leaving less upside.
That's not to say the valuation is right, just that there are ways besides sales to justify a valuation.
"poorinvester, don't tell people to hold on so you can get out"
@unitedguy I think it's safe to assume that nobody here is qualified to give advice, and to infer that every post is the author's own opinion. And poorinvestor is as entitled to his, as you are to yours.
Everybody calm down! I went through the same thing with BMN years back, sat at 2-3p forever then once there was news to tell, they told it, and it climbed all the way to 40p+. RNS is not a blog for constant updates peeps
Yes, I think it's the right price until we get confirmation of production partners, larger volumes and sales. Otherwise you price on hype alone which only leaves room for disappointment. Prefer a strong support area and steady price growth against steady progress.
Agreed chaps, I've been making this point for ages. A good salesperson will quickly overcommit against their production capacity, so having one would actually be detrimental. They don't have a decent house band either, but until they need one people should stop banging on about it!
So I shouldn't have said they confirmed 1.5m /month, I should have said they confirmed they will get nowhere near the 5m/mo maximum capacity for the machine. My point stands, but sorry for the mix up.
So my 1.5m/month figure is not official but as others have said is a guestimate based on the RNS clarifying that it will be a long way below the 5m maximum. My actual point was, there's no need to get bent out of shape over marketing when volume is relatively low; whether it's actually 1.5m, or 0.5m, they should be able to sell those volumes without marketing, flashy websites, online e-commerce, etc. fairly easily.
Chill! They have confirmed production capacity of 1.5m units/month, there is no point spending time or money attracting volume they cannot currently fulfil. It's great the masks are on sale, but I can't imagine they will struggle to sell their current capacity. When we ramp up production or licensing, then it's worth a heavy marketing campaign.
Average of current holding is a little over 2p, but I have held since the sub 1p AERO days, took profits on two of the spikes and bought back on two of the dips, a combination of luck and judgement to be sure.
If COVID has the potential to reappear seasonally like the flu, and mutate each time, there will always be a case for masks in certain circumstances - enclosed spaces, health workers, any visitors to care homes, etc.
But since when did RMS become a "mask" company? The tech was already being developed for various other applications any one of which, if successful, is the sort of thing that get picked up for a whole lot of money. Masks have been the basis of a pump and dump, but have also brought about a placing at 1.25 which people were narky about, could have been higher, but is 4/5 times the SP from earlier last year, and could provide a small near-term cashflow that negates the need for any further placings.
It's fallen to low 1's a couple of times between spikes. I think the drop is overdone, but that isn't to say it can't go further. The RNS was a mixed bag for sure, but covered a lot of topics and I don't expect another RNS in a hurry. In the meantime, MMs might drop the price to create some turnover, some people will see the opportunity cost of holding without news and go elsewhere for a bit... so it could easily drop to low 1s but if we get some good news it could move upwards rapidly.
@andy215 I agree with you on mcap, it's a very simple calculation. Perhaps it's a language issue, I am sure most people mean what "should" the mcap be, and by extension the SP.
And, hopefully we can largely agree that this company should not be valued based on successful production and sales of 5m units at 1GBP per month for 12m annual revenue and a flat multiple of 5 for 60m val.
@andy216 if that's directed at me, you need to find a way to chill out. I declared my 4.5m shares when everyone was counting votes. I bought more yesterday because I think the drop is overdone. I also do not expect it to be back to 3p by 2pm today.
The original post was saying you can't value this company based on an imaginary 5m items sold at an equally imaginary 1GBP each, to arrive at a 60m valuation. The point is absolutely correct. If the same poster is talking nonsense in other threads, that would be the place to air your discontent with them. But this particular point was correct, and being invested in a share is not a requirement for discussion.
@DaProphet fair enough!
I'm sorry you feel it's a pump and dump though, I agree some of that has been happening and some of the near-term SP predictions are pure fantasy, but beneath that we don't have a company that found themselves in lockdown and said "Let's make some masks!", it is based on patentable IP with wider uses that could be very big, even though it's the sort of thing that doesn't make headlines. But also takes time, parking some money is fine but short-term gains are unlikely without, as you say, a little pumping and dumping. Hey, as long as I'm on the right side of the ride, why should I care? Make money, leave some in for the long term, best of both.