Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
EQTEC seem to have tried to go a step to far handling the Billingham project.
What on the face of it was a good opportunity for maybe a well resourced company, like Wood for example, certainly wasn't for EQTEC.
They clearly seem to have learn the lesson now, but at a cost.
The SP is only one guide to the valuation of a company and usually a very inaccurate one, especially for small growth companies like ITX that trade on AIM.
Investors need to base their investment decisions on the finances and potential of a business and pay limited attention to the SP.
Good news RNS announcements make little difference to the SP in the long term - they simply create short term fluctuations encouraging traders rather than investors - long term its much better to have the shares in sticky hands.
Hello AJP
The timeframe may be unclear but I certainly totally accept John Shaw's following statement -
"With record revenues and new funding, Itaconix has entered a new era of development toward our long-term goal of becoming a large, highly profitable, capital-efficient specialty ingredient company."
As for Enquest, I sold out several years ago.
I do think, however, that high carbon fuel prices are an imperative - they are a key driver to change and will ultimately fund that change - the oil majors of today are the leading suppliers of renewables tomorrow and if they slip from their role they will be taxed to oblivion in the same way as the small North Sea oil companies like Enquest are being now.
The main thing with an investment in ITX is that you need to be extremely patient.
The trouble is that the corporate customers take such a frustratingly long time to develop and market new products, so every thing moves in slow motion.
This is of course the biggest benefit, because one they have the product in the market place then they repeat order from Itaconix.
But don't expect fireworks!
After a few years of observation, I think that Ocado Retail has far more relevance to the group than was immediately apparent.
Firstly it proves the concept in a practical way and continues to greatly facilitate R&D.
More importantly for long term Ocado share holders, profits from retail fund other parts of the group and help avoid dilution - the threat of dilution, with Ocado Retail not showing profits, has probably been the biggest reason for the fall in the SP.
The value of the other 50% of Ocado Retail is obviously enhanced by the profitability of the business.
It should also be noted that M&S are getting far more benefit from Ocado Retail than is evident from the accounts. They are making profit on their own branded good sold through Ocado Retail and getting volume discounts from their suppliers for products sold in their stores and through Ocado Retail.
The end result is that they are gaining market share at the expense of Waitrose.
We could, I think see M&S make a move to buy the other 50% of Ocado Retail, this would I think be very good news for Ocado and significantly push up the SP.
The negatives are macro related - outside the companies control - and will reverse as the economy continues to improve.
Ocado Retail is now well placed to exploit the market, especially with the efficiencies gained by opening Luton CFC.
Onwards and upwards.
I think the reason for the slide in the SP is because of lack of trading.
Market makers make money when we trade, therefore, the algorithms are set up to encourage trading.
At the moment with so little trading the SP is sliding to encourage buyers.
When we do see a reversal it could be a big one and it could happen at any time, especially with the SP so low.
ITX stock out on loan at the end of August - curtesy Euroclear - was just 0.05%.
So unless its gone up a lot since, shorting is probably not a factor.
Tomorrows trading statement is just that - a statement regarding how Ocado Retail is trading - it is not about the rest of the group.
I think we will see that Ocado Retail is well into recovery mode and regaining profitability, ahead of the peak Christmas trading, so the current and future outlook has improved and is now good.
The FTSE100 is up nearly 500 points in less than a month and is likely to continue to climb as interest rates and inflation come back under control.
We should see 8000 points soon.
M&S is likely to greatly benefit from this scenario as momentum continues to build with better results and the return of dividends as it enters the 100 index.
A rather flat set of results from John Lewis this morning with a distinct lack of anything entrepreneurial, despite the fact that they are sitting on a big cash pile.
They seem totally rudderless, with the expectation that trade may flow to them as Christmas approaches.
https://www.londonstockexchange.com/news-article/45GD/john-lewis-plc-unaudited-interim-results/16124171
A think a lot of what we are seeing here is the strength of the NASDAQ - it seems to be rising back towards its post Covid highs before tech share values fell back.
If this trend holds and continues then we could be looking at the return to favour of tech shares with the resulting overbought valuations - what SP for OCDO then???
The logic behind the rise is that US interest rates have peaked and the next move is down.
It seems that for some reason share consolidation kills the SP.
Its still not topped the consolidation price of 60p and has now fallen to 51p.
The same thing has happened at ITX in a much more recent share consolidation.
Hopefully the results will reverse the trend but I am not hopeful - it seems the algorithms are stacked against consolidation to encourage trading on the downside.
I don't see much movement in the SP even with the update.
Share consolidation kills the SP in the short term for some reason.
I also invest in TRX, they had a consolidation in April 2023 and the SP has drifted and is still well below the pre consolidation price of 60p - now 50p - and has failed to go above 60p. TRX are at a similar stage in their development to ITX and are showing good results so I don't think its company related.
Anyway. its certainly a good time to buy for a long term hold, even if the SP continues its unimpressive run.
Yes, we have to remain positive and with the macro improving in the US we should see some improvement in the SP over time.
I do wonder though, if the share consolidation is the first step to a US only listing for Itaconix.
Apart from selling some product here, Itacaonix has no UK ties and the market cap would probably grow faster in the US giving the company better access to the equity funding that it will certainly need as it grows.
Keep an eye on the Nasdaq as well Boyobach.
That also seems to be back in recovery mode.
Maybe OCDO has stabilised around 750p and will follow the macro with the NASDAQ.
Trading update should be OK - indicating return to profit with Christmas trade outlook.
I think that the SP did go overbought for a while earlier in the month but its now settled back again at a sustainable level, allowing the institutions to slowly accumulate on FTSE100 entry - they certainly wont pay over the odds for their holdings.