Member Info for cm22

Thanks Mrozzy,

'This means less dilutive funding for Tekcapital, especially given Tekcapital’s relatively small overhead'

Seems they read this message board. Think this is in response to the post raising the possibility of a capital raise...

Yes, i think people don't really understand the dissonance between the SP and the value of the businesses.

Hi baf3,

I agree, except for the shock absorbers. I don't think they will come to anything.
On the other items, such as BELL, i think they will be valued higher.

It went up 100% in a day because of this report? Does it provide new information?

For those “alleged” investors that can’t envisage how the SP could return to 30p on the back of some big news on this front?? They are either disingenuous trolls or really shouldn’t be invested here as these things don’t happen over night.

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Hi Maximus, I don't think people are necessarily trolls. I think they just get over emotional when SP slides and project the performance of the SP onto the performance of the business. Guident is fine if it just gets a couple of deals a year at this stage (especially given that they are big deals), and that means many months without any news.

I am a bit worried how Lucy would do in a recession (probably sunglasses are not going to be the priority for people short on money) but if they continue to gain market share and grow fairly quickly then that is positive.

On BELL and Microsalt fairly confident. Both very solid business propositions.

Hi baf3, that would be reassuring.

I think Lucy is more sensitive than most to interest rate changes given the debt profile. Should do well in a falling rate environment. The other 3 companies have very little debt.

To just look at the revenue trend would miss the ramp up in production capacity. PIs become negative when the SP falls and excited when it rises. A lot of these comments like the one complaining that this company 'is family run' seems to have no more basis than that.

Hi Giancotti,

I disagree. I think the communication/PR has actually been much improved from previous years.

On BELL i am quite happy with the progress reported today.

Hi Seaman,

It seems that production is already way up in Q3. Overall reassured.

Really looking forward to Tuesday when BELL report their financial results. Expecting them to keep exceeding guidance. Monday is a bank holiday in the UK.

Hi Puma,

3 and a half years ago the SP was 4p and now it is 23p and the underlying businesses have done incredibly well. I think you need to keep some perspective.

Hi Agricore,

Of course the translation effects do help UK listings with earnings made in the US. I was just pointing out the counterarguments here.

So the channel is that when there is higher global growth, flows head out of the US to high growth opportunities around the world. When there is low global growth there is higher risk aversion and flows head to the US to hide out in liquid/safe assets.

The 2nd point as i mentioned before is that part of the reason central banks such as the ECB and in emerging markets are raising rates is for their currencies not to depreciate too much compared to the US.

Thirdly, since a lot of global trade is invoiced in dollars, when the dollar goes up global trade becomes more expensive.

I am sure i could find academic papers documenting these results if i tried, but i think it is generally accepted as received wisdom...

Agricore, i think that his point is that lower US dollar should increase risk appetite generally and push up stocks everywhere. Also, non US countries may feel that they don't need to raise interest rates anymore to defend their currencies.

I don't think Cliff sees his job as trying to boost the share price to satisfy short term investors but to build a successful business over time.

Agreed TopCatz, Perhaps the best of both worlds is to have the UK undervaluation but not have to be subject to PM Truss economic policy...

https://www.bloomberg.com/news/articles/2022-09-07/foreign-buyers-hoover-up-britain-s-fast-growing-tech-companies

This could very easily be TEK or its subsidiaries. There aren't any tech companies faster growing or more undervalued than TEK.

HI Genki1001,

I think it is unrealistic to have a massive advertising campaign. They are just a small firm with 6 staff. The important thing is to get the business right.

Also, they have improved the communication massively. They do a lot of media for such a small outfit.

Hi TopCatz, probably nothing. It is so erratic i wouldn't read anything into a 20% move one way or the other at the moment.

I regret that TEK is getting more of these flaky types of investor/commentator nowadays.