Member Info for chilting

The scope of the proposed tax according to the media would cover on line retailers and tech companies with an additional excessive profits tax. Reuters are saying the details of the tax would be revealed later in the year. The Times article mentions Ocado and clearly Ocado Retail could be directly affected by a tax on all online sales as would M&S.com.

Its likely that although M&S's online activities would be adversely affected that there would be a net benefit because the opposition particularly ASOS and Boohoo would take a much bigger hit and would also probably fall foul of the excessive profits tax.

https://www.reuters.com/article/us-health-coronavirus-britain-budget/uk-plans-to-tax-firms-that-profited-from-pandemic-sunday-times-idUSKBN2A60TE?il=0

The scope of the proposed tax according to the media would cover on line retailers and tech companies with an additional excessive profits tax. Reuters are saying the details of the tax would be revealed later in the year. The Times article mentions Ocado. Without further detail its far from clear how Ocado Solutions would be affected but clearly Ocado Retail could be directly affected by a tax on all online sales - if that is being proposed???

https://www.reuters.com/article/us-health-coronavirus-britain-budget/uk-plans-to-tax-firms-that-profited-from-pandemic-sunday-times-idUSKBN2A60TE?il=0

Biden's bid to take on the Permian producers in Texas by trying to reduce Natural Gas emissions to the atmosphere is gaining traction and the Texan Governor is up for a fight.

https://edition.cnn.com/2021/02/05/us/climate-crisis-texas-methane-emissions-weir-wxc/index.html

Colonel
The question isn't if, its when, and remember, just because a technology has potential and even if a business is successful, it doesn't necessarily mean that the shareholders will make money.

I would say that Ceres have taken the cautious approach and have spent well without splashing the cash - the shareholders should be richly rewarded.

ITM, however, have spent big, I know that they probably needed to, but they have to sell their electrolyser system's right from the start otherwise they are stuffed - If they don't and cash runs short that will mean pain for the shareholders - even though the actual product produced will ultimately be a big success - look at SXX for example.

Both companies SP's are certainly overbought at the moment and are probably overdue a correction but that's a different issue and not so relevant for long term holders.

DireEmblem
CWR is probably well overvalued now even with the massive potential but its most defiantly a very firm hold .
Rather than look for a target, I think that it is better to look at the value you want to keep in your portfolio and then top slice the profit and invest elsewhere.
I have done this three or four times now and it has been very profitable.
It means that you can just leave profit as your investment and if the SP does dip its just a paper loss until it recovers.

I guess the lack of share movement is more to do with the pandemic dragging on, though I think we should get a lift on Tuesday - the Ocado link up is the best bit of M&S.

Jan
I think that you are undervaluing Enquest in a rising market.
OPEC+ seem to be in charge of the oil price now and are propelling Brent upwards, therefore, I don't think it will be long before Enquest gets back towards 20p.
With that scenario Enquest will be in a position of strength and the Open Issue shares are likely to be snapped up quickly with a much smaller discount of around 10%.
So much depends on the financial health of a company when it raises cash and AB's commitment will be a big plus factor.

That has been obvious for months - you only have to look at the market cap of both companies.
However, both companies are very different.

Ceres has a low capital spend and is basically manufacturing a low cost product to the demand of the market with licencing opportunities around the world - even if the SP did go down substantially it would still remain a long term hold. As a long term holder I am happy to hold and top slice to invest elsewhere.

ITM are MUCH more speculative, they have laid out a lot of capital to built a state of the art factory to manufacture high spend electrolyser system's and they are involved in costly capital projects. The market cap here is totally OTT at £3,667m

A bubble waiting to burst Ammu but all the while CWR continues to move up I will continue to top slice and invest in Covid recovery stocks. Long term CWR could be another ARM, so will continue to hold as I have since they were 150p - now over £15.
ITM is the biggest bubble - about the same size company as Enquest but with a market cap of £3,667m.
One tip for you ITX - fantastic opportunity.

Maybe Ammu, but if the Chinese are big buyers that might not be the case.
Looking at Covid from a global point of view most of Asia is in recovery mode.

If I am right Ammu, then you could have a good trading opportunity coming up because I guess that they will catch up quickly.

Modestus
Look again and compare Enquest, BP and Brent over the last year.
Both Enquest and BP had been followed Brent through the summer but since then have lagged.
I think that over the next few months, as Covid recedes, both companies will catch up with Brent.
CNE has had the Indian repayment to look forward to and other income from asset sales.

dougerboy
Yes, that's true but its important to maintain momentum - especially with small caps - many investors have a short attention span - its important to maintain their attention or it becomes a stop start process.

Yes, I think we could look back on these Covid times and say, that was when China overtook the US as leader of the world.

We don't all have a devious mind like you Ammu - I just say it as I see it.

The SP is still flatlining - lets hope that the Ocado results give it a lift next Tuesday.
We are I think due another step up - 160-170p should be attainable.

The volume is well down but the SP seems to have found its level - as long as it doesn't drift down over the coming weeks I think we can be confident that the market has a handle on the value of ITX - I think we have built a platform to build on when the results are announced next month.

Well the new year rally has run its course and the SP is now nicely poised to receive the final results next Tuesday.
Its almost choreographed.
Bring it on!

Very interesting and significant news from China - if they have worked their way through the stockpiles that they built up during the summer that must mean that there has been significant economic activity in the country - add that too the hike in transportation costs that our importers are enduring for goods from China and other parts of Asia and it seems that we are on the cusp of a post Covid boom.

SP finished blue.