Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I think that the main problem here is low volume and the effect that has on the SP.
The algorithms are set up to encourage trading on the downside but with such a high proportion of stock in sticky hands this is not happening.
Hopefully the professionals who advise Itaconix know what they are doing and trading volume will improve, particularly in the US market.
But the only way this will work is if the SP rises substantially, encouraging long term holders to trade and take profit.
I guess the US market is key to this rise in the SP, hence the consolidation.
Don't expect any fireworks today.
The SP usually goes flat or down in the short term after consolidation.
I guess we will need to see some good news to get the SP moving again.
Its still a waiting game here, as it has been for well over a year now, I don't see any problem with the cash situation, Ceres have always been careful with spending.
The business strategy here is governed by delay and it has always been anticipated.
I think that's unlikely Pang.
MKS still holds a probable position of at least 87.
Its been a red week for most of the market, therefore, it could be higher than that.
The FTSE100 automatic entry position is 90 and under.
I am not sure where your numbers come from AquaeSulis
I got these straight from the equivalent RNS reports
Cash and short-term investments -
31/12/21 - £250m
30/06/22 - £221m
31/12/22 - £182m
30/06/23 - £162m
So, the cash balance is falling but hardly dramatically.
I cannot see the need to raise funds for a while yet, maybe not at all if revenue starts to increase from licencing.
The problem is that extra fund raising has been just required to stand still for many reasons - slow project development, Covid, poor macro, especially inflation and high interest rates etc etc.
All growth companies big and small have suffered over the last few years or so and the market has punished them for that, pushing the SP lower as more fundraising is needed.
Hopefully EQTEC will now stick to their more capital light, quicker to get payed strategy and stability will emerge but there isn't much they can do to mitigate the poor macro without going backwards.
Ideally it would be great to see EQTEC concentrate on say 3 or 4 partnerships with well funded companies who can use their tech in capital projects. These companies could also become major shareholders.
Agricore
Its a simple fact that AIM listed companies always need to raise cash to fund growth - that's the primary reason for an AIM listing.
The real question now is - will EQTEC be in a position of strength at the next fundraise?
It seems that if their "asset light strategy " works, then there is a good chance that they will.
A successful fundraise is probably the best way that an AIM company can move forward, it proves the business plan and increases the investment value for all shareholders even after dilution as the company grows with the extra investment.
The headline shorts are increasing again - now at 4.07% with five players.
Its still very unclear where the SP will go in the short term, even on the charts.
We could certainly do with some good news, maybe some solutions business other than grocery.
The strong messages from the board continue with todays share purchase by newish board member, Cheryl Potter.
Note is says this in her portfolio on the M&S corporate website -
"Cheryl joined the M&S Board on 1 March 2023. As the former head of the global consumer team at private equity firm, Permira, Cheryl brings a strong shareholder value focus to the Board, as well as a wealth of leadership experience."
Yes, looking like the clear run up continuing into the FTSE100 with much more to come with the return of dividends, all driven by high sentiment and institutional buying.
Enjoy the ride - certainly not a time to sell!
So the state of play at the moment is that MKS is ranked at 87 and would gain automatic promotion if it holds this position - 90 and above gains automatic promotion at the end of August.
It could be that it ranks even higher because the ranking list hasn't been updated yet and many companies lost value today.
Current market cap is £4,369.78m
http://www.stockchallenge.co.uk/ftse.php
One factor that the article didn't mention is the competition.
The fact is that as M&S advances most of the competition is going backwards and disappearing.
Look at what has disappeared over the last five years - Debenhams, Arcadia etc.
What's going down - John Lewis including Waitrose.
Its an open door!
Its beginning to look like Gove might have done M&S a favour.
The best option now could be to simply close the Marble Arch store.
That would still leave them with a large store at the Soho end of Oxford Street.
The SP is certainly holding much better than I thought it would last week and the headline shorts are down, so lets hope that the SP will consolidate around the 875 - 950p level for the rest of 2023 and then moves back over 1000p next year.
I think a period of consolidation is needed to give potential buyers confidence that the current valuation is valid - the value of OCDO is guided by sentiment.