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You could envision the day when the whole salt market is microsalt. True, it is more costly but the health savings would compensate.

Maybe more like 29p. A number of its portfolio companies have been caught up in the downturn too. Difficult to price the fair value of these companies but it is a lot higher than 15p.

On the face of it this is the biggest news for Microsalt for at least 1 year. That a number of big clients have committed to Microsalt and are just working on a few technicalities such as packaging and flavours.

On insinuating information from the response of the market, i think this is a highly dislocated market with limited liquidity. Most share holders are just PIs who don't have any depth of knowledge. Small cap valuations are at their lowest since the 1990s and microcap valuations are probably even worse.

Investors tend to anchor to recent events. When we are in the left side of the distribution they find it difficult to imagine anything different.

It is normal for stocks to rise rapidly on rebounds from bear markets. Especially smaller speculative stocks like TEK, which have been trampled down so much.

Thinking about Guident i am much reassured. I feel like these partnerships with other leading companies in the industry really help to build our moat. Not many new entrants can boast our quality of senior management either.

SP drop today seems to be driven mainly by 1 sell order of £16,800 early in the day. Best not to overreact to moves driven by low liquidity.

Would be good to have some guidance when the FY2022 report will be released.

Hi TopCatz,

If LUCY IPO struggled because of the market bear market Microsalt IPO could benefit from improving market conditions later this year if they time it right.

I think Microsalt could potentially really capture the zeitgeist. A really groundbreaking product with a clear growth trajectory. It is not like the UK have a lot of these tech stories to invest in. Could be something like what happened to Ocado (before the recent collapse).

To read some of the messages you would think that PIs would prefer to invest in the company at overvalued levels. Being below NAV is good for future returns not bad.

*ROI = Return on Investment

I agree with that TopCatz. Personally i wouldn't want to sell LUCY or BELL at these levels.
I think the main issue is that the share price is lower than we would like, given the fundamentals.

This was one of Modiglianni and Miller's main hypothesis in their classic study, that dividend policy doesn't affect value. There are misconceptions among PIs though i suppose which may
create distortions.

Rather than dividends i would prefer share buybacks. It makes sense when shares are greatly undervalued. Goose up that share price on the limited float.

Whether you want them to return capital depends on their ROI (return on capital). If they have a strong ROI then ultimately you want them to invest the capital and build value. This issue is particularly acute given the difficulty small firms have with raising finance. If in the future they are forced to raise at a discount, i would prefer that they fund new investment via this cash instead of giving it back as dividends.

Having said this, if the company can demonstrate a track record of success, then they will find financing easier. The companies ability to finance has already improved over past years, even given the current tight financial conditions. I remember much worse share placements than the last one.

These presentations are mainly to inform new investors.
It doesn't make any difference to the value whether it is on the balance sheet or whether those holdings have been sold off and distributed to share holders.

For VW to adopt them means they will be significantly better than the Audi version which they have been concurrently developing. The concern is that it becomes a stranded asset which needs to be written down.

On the other hand they have a lot of expertise and experience and have surely been advised prior to deploying this capital...

Full year results for BELL were released on 22nd February 2022 at 7am. So expected anytime now. We already have a good idea that they are broadly on track from the year end trading update released in January. What will be interesting is the outlook going forward and any guidance on the current production rate.

Bob Rauker also gave an in depth interview on the day of release last February so that will be interesting to watch out for.

Hi Tivman, I agree that there is interest. But you should bear in mind that OEMs were already testing the shock absorbers in 2020. It is a competitive marketplace, with a number of players including OEMs such as Audi and BMW developing their own versions. Guident's core competence is not in engineering, it is in software.

They have made a good case for the core business, and their advantage in that area. I don't think they have talked enough about the shock absorber business and their product vs others, given the amount of capital being allocated to this venture.

I think there is too much focus on the special dividends at this point. Personally, i wouldn't want to see TEK sell its BELL stake at these prices.

TopCatz, i recommend filtering people who you don't value. Saves a lot of frustration on both sides.

My biggest concern at this point is the shock absorbers. I think more justification needs to be given for the continued expenditure in this area.

If history is anything to go by it falls to the placement price and then rebounds. That seems to be what has happened.

Now the funding is going towards Microsalt and Guident. Once the Microsalt IPO goes through it will just be Guident which requires continued financing. Should be a good thing. On the Microsalt inventory i would say that is a positive aspect if demand is that high that they need all this extra production.

On Guident i think overall quite positive. I remain concerned about the shock absorbers. This would be my next question whenever Cliff does his next Q&A. I would like more understanding of where the shock absorbers stand against competitors and product developments.

The market is regenerative shock absorber market is forecast to grow to $4.2 billion by 2032. This is an interesting report on the market (& Guident), although i haven't read the full report:

https://www.factmr.com/report/regenerative-suspension-system-market

Overall, i am more comfortable with the core business than the shock absorber business. My understanding is this technology is reaching commercialization stage so we will find out quite soon whether it is going to succeed anyway.

I am quite encouraged that Auve have extensive operations throughout Europe. Suggests Guident expanding its footprint and capable of becoming a global company. Also made me up my expectations for the number of deals they will get this year. This is another one which could take off once it hits critical mass. More of this please.

I think the BELL full year results are due next week. Would then expect Bob Rauker to do some interviews following that.

That is the point. Those other substitutes weren't adopted because they don't taste like salt. Microsalt does taste like salt because it actually is salt.

I agree with this TopCatz, you can just see Rick Guiney doing exactly what he did at his previous company. I feel someone could really light a fire under this stock this year. Has all the ingredients to go exponential. Getting quite excited about Microsalt!

I still feel like i have no idea of what LUCY is currently worth. Whether it should be $1.20 or $7.50. I feel like the current (and previous) price action has largely been driven by market manipulation and the subsequent short squeeze. I wait for more normal trading conditions to set in.

As we move forward we should get a better idea of a likely growth trajectory and more of a basis on which to value the business. I also think technical analysis is of less value when it is driven by short squeezes, and there is such limited liquidity.

LUCY's wild ride since IPO should be a lesson to everyone how manipulated micro cap stocks can be.