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They are not throwing in the towel lol far from it.
They are fed up that the market does not value them properly (which would be circa £1.17 ) and
the dont need any money (Aim is for raising cash) as they have £71m in cash give or take.
So the can cut costs and return cash to shareholders which is what they exist to do.
Its what proper companies should be doing especially if they have no intention of raising funds in the market.
MXCP have made this clear.
Guys guys come on now , you should all know this already, dont you do your due diligence.
This is now a stronger buy than ever before.
MXCP wont be selling their shares here not in the way you lot describe.
MXCP will help CLCO to be bought out once the company gets up and running properly and creates some value.
MXCP have the same plan for IDE.
What we now know is that their timescale for this is less than 5 years which is excellent news and gives us roughly 2-3 years before being bought out imo.
This is what MXCP specialise in and it is why they have poured so much money into this.
The mxcp news today is also great news because you can currently buy £1.15 notes for 50p
You have to wait a bit to get your payment /profit of course but it is easy free money in the bank and smart investors will be buying them up.
CLCO results tomorrow possibly.
This will really get going after they kitchen sink the past which we already know about and look forwards to the future.
GLUK.
I'm in for more!!
Once the results are out the last of the old fiasco will be buried and done with.
They can then forge ahead on a clean sheet of paper.Tax losses will ensure all profits for the next few years go straight to the bottom line.
Buying now might be prudent.
Results Fri possibly.
GLUK
Don't know about you guys but I am loading up here.
Everything at 1p or below is a gift.
Bargain prices I never thought we would see.
This is a recovery play and you must give it time to recover.
10p to 20p over the next 2 years is quite possible.
Sort termers should see 5p over the coming months.
Money to be made here.
GLUK
I agree with popes11.
This will never have any traction to drag itself out of the mud.
If they had not spent heavily on marketing over Xmas then what would the Rum sales have been ?
Spending money to make the same or less amount back doesn't work.
The other brands are worthless I dont know why they said 'Brands" are doing well when we all know as fact they only have 1 brand to talk about.
Cash must be extremely low now it was about £800k 3 months ago.
As we all know a company will try and raise funds before it runs out completely.
RedLeg is not filling the coffers back up with hundreds of thousands in new cash.
It is burning cash.
RedLeg would have to start selling in the millions and become a top 3 brand to make any real difference here and that is simply never going to happen.
Revenues and volumes are down overall even though RedLeg volumes spiked up over xmas.
We know this is because of advertising spend.
The rest of the year will be pretty grim in this sector.
Sell the brands and turn this into a cash shell while they still can.
It seems to me the urgently need a cash placing to keep the balance sheet above water otherwise they are more or less insolvent.
Last part............
Overall then, I can see the potential here, if growth accelerates again, but for the time being I'm a bit sceptical due to today's unimpressive update & big forecast reductions.
Stockopedia is very sceptical, with a low StockRank. Bear in mind that the high momentum score is likely to fall, once revised forecasts work their way through;
You lot are certifiably insane lol.
This is going to completely collapse imo.
Best you read this.
Stockopedia is showing forecast revenue of £11.9m, so actual revs of £9.3m is a 22% miss - not good at all, coming so close to year end.
Note that interim revenues were £4.32m (up 64% on H1 LY). FY revs of £9.3m would mean H1 to H2 sequential growth of only about 15%. That doesn't tie in at all well with the talk of exponentially rising revenues.
Profit miss - this is a big miss, as gross margin is high. Adj EBITDA forecast drops from £2.3m to £0.4m. I'm becoming increasing surprised that the share price is only down 8% in response to a big miss.
The company is capitalising around £2m p.a. of costs into intangible assets, so the EBITDA number does not translate into a proxy for cashflow. Although, tax credits are an important contributor to cashflow - the last balance sheet (interim) shows just over £1m sitting in receivables, due from the taxman. The new Govt recently announced its intention of making this scheme even more generous.
In a separate announcement, it turns out that R&D tax credits have been wrongly accounted for by the Govt, for years, and that the annual deficits were actually quite a bit bigger than previously reported.
Adjusted PBT for FY 12/2019 has been revised down from £0, to -£2.0m. But remember to allow for the positive impact of R&D tax credits - arguably we should use PAT not PBT as the benchmark for companies which claim tax credits in this way - as it's a bona fide contribution towards cashflow.
Forecasts for 2020 have also been slashed today - which doesn't make sense to me, if the problem is a contract slipping from 2019 to 2020 - surely that would mean 2019 forecast figures are cut, and 2020 forecast profit should actually be increased?
Adj PBT for 2020 forecast drops from £2.7m to £0.9m.
Cash - has improved in the last 6 months, probably due to receipt of tax credits;
Cash has increased from the end of 1H 2019 and will be at least £2.5m at the end of 2019.
Strategy Day - is being held on 29 Jan 2020. These meetings can often be a precursor to a placing. Bango looks as if it could benefit from a smallish top-up placing, to give it more headroom. So I would imagine that a £5-10m placing is possibly on the cards? With a market cap of £88m, that's not much dilution, so isn't a major concern.
You have to remember that big name customers expect their key suppliers to be well financed.
My opinion - I feel that the bullish commentary today doesn't quite match up with the sharply reduced forecasts. Maybe the PRs were allowed a bit too much leeway, given the time of year?!
If this company does manage to produce exponential growth, at high gross margins, as it talks about, then the shares could do very well indeed. The figures today put a question mark over how realistic that is. It looks to me as if the growth rate is slowing, at least for now.
Overall then, I can see the potential h
It makes loss after loss and without placings it would be bust.
I expect yet another loss to come with the next results.
Then what?
Dont think this cant get worse , it can , 15p worth per share of worse.
At 53m it is a ludicrous value on such a loss making company.
I say it is worth 10m at best and thats being generous.
Good luck if you decide to hold.
KMK's market is a very saturated one there are a lot of far bigger companies in America producing this equipment and in Japan.
Of course there is an Inst selling , where else do you think the hundreds of thousands of sells over the past few weeks have been coming from?
Certainly not PI's.
It is very likely it is Miton selling , they are dumping a lot on non core badly performing investments now that they have merged the company with Premier.
Its very likely it is them and they have millions to dump.
Your making the classic novice mistake of holding on too long.You have to be tough to win in this game and cut your losses sharpish.
We cant all be 100% right but the winners are the people who can cut a loss quickly and move on.
Time spent here is wasted ,you can make it up far quicker and safer elsewhere.
KMK are serial failures time and time they fail to deliver any meaningful contracts.
Just jam tomorrow pie in the sky nonsense with no numbers attached.
Grab what you can before it gets worse is my opinion.
Contract news will send it into orbit around 10p imo.
This could break out up to 3p today , it wants to explode I think!!
Analysts dont have a clue and I suggest they are way of the mark here.
But either way private investors are not going to wait yet another 5 years for any sort of return let alone a decent one.
There are far better investments on AIM and this is not one of them.
I expect more losses to come and no significant orders of the type they promised before and during the last placing.
I wouldn't invest here just to sit and watch the years pass and nothing much ever happen.
I prefer a real growth company that has real prospects , not a jaded serial disappointment like KMK.
You will need to be very patient imo.
Yes.
Yes but thats the problem with this company it is all smoke and mirrors.
The largest of these contracts is the $58m one and it is spread out over 7 yrs so only $8m per year.
All the other ones are spread out as well over 18 months to 5 yrs.
The reality here is far different than the one the company paints for itself.
One of Warren Buffets best quotes/points is this...
'If the stockmarket closed completely for 5 yrs would this company still exist at the end of the 5 yrs?'
The clear answer here is a resounding NO.
It only survives on placings and after all these years it is still making regular loss after loss.
It is the quintessential 'Jam Tomorrow, tomorrow never comes' stock.
Good luck if you hold but I wouldn't touch it,and now that 20p has broken this has no floor.
The shares that were sold by Link and Invesco went directly to several instis who all wanted in but who all want to remain below 3%
This will hopefully be alluded to in the upcoming results.
Also because of the Investors Chronicle article a lot of them were also taking up by public demand.
But the large selling is now basically done and dusted.
They will not use any of their cash to buy and cancel shares because they not only see no need but have a lot of plans for that money to be invested.
We can expect extremely good set of results on the 2nd of Dec
I am buying a lot more before these results come out.
GL.
Next the position with the Woodford shares/Link is thus...
They have sold down a chunk as we know and for a very nice profit for them since they took it over from Woodford.
This gets Link significant Brownie points.
The remaining holding is not under any pressure to be sold and it is expected they will only sell them not only at a profit but only as and when someone will take them.
They will not be dumping them on the market.
Some interesting facts were brought to my attention.
Invesco...Mark Barnett was forced into shifting all positions above 20% holding back down to under 20% holdings right across all of their investments.
This has been done to the letter with their Merc holding now just a fraction under 20%
It is fully expected this will now be held by them long term and no further sales from Invesco are expected.
The more I look at this company the more I wonder.
We had a guy posting on here a while back who said he was a trademark expert?
If he is still around can he explain this please?
How did Distil manage to trademark the name Mardi Gras?
I would have thought that had been done a long time ago by the organisers of the event or other such connected companies.
How did micro company Distil manage to sneak in and grab this trademark?
It seems astonishing to me that such a name was available?