Member Info for Computer909

Looks like Amati haven't finished offloading yet

Was always going to drop today because i bought some more this morning, always happens !

I think it's just a case of putting these in the bottom drawer for the next couple of months and hope that flowcomm doesn't screw up the release of any further good news.

Not sure the company are doing much wrong themselves its just the market conditions at the moment.

Still to be convinced that the Akelikongo project is a good thing, and need convincing that a project that Rio Tinto reportedly walked away from after spending $15M is a wise investment for a £7M mcap company.

'Has anyone else seen these regular tiny trades elsewhere?'

I think these are SPREADEX trades

Its unbelievable we are now below the SP before the JORC update, the PR of the company is shambolic.

My concern is that Akelikongo will be an expensive distraction from delivering Orom-Cross, Rio Tinto walking away when having already spent $15m on the project because one member of staff left is hard to believe

Not sure the raise from RAB is the issue, they are unlikely to be selling into the market at present, The issue appears to be the PR company flowcomm seems to be amateur time, The way they handled the JORC news meant that the shareprice was opened up to traders looking for a guaranteed 5%. Now we have no news to look forward until mid year at least, so with the SP drifting people are looking elsewhere for a quicker return, and there is also the risk that with news they may dilute again and stifle any SP rise we get.

Its also very telling that Simply Wallstreet have changed their rating on EQT from 174% overvalued on 17/04, to now being 75% undervalued today.

Not sure Swazer has any credibility since he said only days ago that he thinks SYME was looking to break out into "Zone B" and it hit -40% falling to an all time low, I think thats proof that in AIM charting is a 50/50 coin toss.

@Stateside : "Tom Winnifrith didn't mention the loan at all"

Yes, i thought that was notable, and that he was basically regurgitating the ************* previous comments from a few months ago, saying they would need to raise cash, when overlooking the fact they had done that just weeks ago and still have the capability to call on another £5M if they need it. As I say the guy is an idiot but some of the comments regarding the complexity of the company accounts did strike a note. It would be good to see this addressed in todays presentation

@Aandi: "Way beyond my comprehension I'm afraid, such is the nature of the business at this stage."

I think this is the crux of the Tom W share prophets attack on EQT this week, He may be a mumbling idiot, but the main point was that the accounts were unclear as to the true liquidity position of the company, and that "The Auditors had not shown a suitable degree of professional scepticism with the accounts"

@Dersack: "Maintaining the pipeline isn't that expensive once you have a network of reliable investors to buy your spvs in the short term"

And that currently is the issue, the current climate means reliable investors seem to be in short supply, Even with DP's investment background, so perhaps the brakes need to be applied a little to the flow of cash leaving the company.

Just get the impression that the CFO doesn't understand the concept of managing immediate cash flow and is more than happy to rely on the shareholders for a cash injection when the snacks in the office run low.

Sure we will have a greater understanding after next weeks trading update and will all be more comfortable with the situation (PS: @Aandi, Trading update, Full Year results , 2021 Annual report call it what you like !)

@TryTryTryAgain : "there's hardly any cash investment in a lot of projects at this point."

And progressing those projects is excellent, no one is saying the whole pipeline needs to stop, it's the projects that need extensive EQT investment that are currently the issue.

When we wash our face for general working capital then that is the time to increase the project investment, not in the current climate expect that shareholders can/will continue to support the investment of millions that are tied up for years.

@DerSack: My Initial investment in EQT was 5th June 2020 and have added regularly ever since and have never until recently had any reason to question the company's approach and operations.

I totally agree that the market has changed dramatically, and i think that was the crux of the discussion, The company doesn't seem to be adjusting based on the financial climate, instead taking the increasingly risky approach of continual expansion of financial exposure,

The nature of a pipeline is that projects go in one end and come out of the other, not just simply continually get fed in when there is a blockage along the line, we simply cant afford to continue to add to our active projects list whilst having to bank role the development services, that is not a sustainable model at present, in 3-5 years when we are cash rich then maybe so but not at present. Whilst a rapid pipeline growth is on the face of it an excellent approach, when it comes at a risk of not having enough working capital, then there surely must be a period of drawback and consolidation before we are in a position to push forward.

My concern is that so much capital is now tied up in the "Development Services" phases of numerous projects that the company is having to call on shareholders for general working capital, and when the last call to shareholder was at 1.5p and we are now at 0.75p quality investors start to question whether its a safe bet in their portfolios

"Those large 9Mw plus plants can return revenue pre financial close you do know yes? At much higher margins?"

"Can" but haven't !

You are just making figures up of what can be achieved, when in reality we wait for them to achieve anything

Look at the contents of your statement.

Probably
Maybe
Could be
or so
Conservatively
If
Possible

Maybe this, likely to be that, probably this, possibly that

And you state you understand their financial model ?

@Aandi: "Maybe promote the company instead of picking holes in their short term financing requirements and you can share in the success and maybe do your small part for the climate and global warming. "

Please don't fall into the mindset of that thinking you cant question the company you are invested in, Sometimes it's better to question what is holding back the company, so you understand where the share price is sat.

My only concern with EQT is the financing of its business model, and that is a direct result of not being able to close pipeline projects, my concern increases as we spread ourselves thinner relying on equity raises at a lower and lower price point.

As i said, get one of the larger projects to financial close and the complexion changes, at the moment it's a concern for me.

"Eqtec didn't dilute shareholders in their latest cash raise tho, we took a loan/bridging loan/part CLN if that repayment option is chosen."

We wait to see how they operate the repayment !

@Aandi: "who cares about all that it's all about profits and the share price yeah? Company reputation with plant owners, who cares about that"

Last time i checked EQT wasn't a community interest company it was a commercial organisation with shareholders.

Also when a company's main source of income at present is equity based financing, then yes it is about the share price.

@aandi: "Another question I will ask and answer?, you definitely do like to flex your ego!

I suppose the big EQT business model question is summed up in your last post

"We need €23m to keep projects on track. 2021 revenue €9m? But not all of that is profit, most is required as working capital to keep business flowing. So you can see the discrepancy, the funding gap to incubate projects. How do the plants start construction without capital? Magic???"

When does the company consolidate its position and say we cant sustain the development phase investment on any new projects until we get financial close on one or two of the others. If we are starting new projects without completing others and the revenue stream isn't covering the expenditure, the company is just spreading itself thinner and thinner (or rather diluting the shareholders thinner and thinner).

It again comes down to the company's move away from an approach of reciprocal financing, to now being comfortable to stretch further and further with the project pipeline without consolidating the return, How long before they stretch too far?, some may say they have already, being forced into the latest financing deal.

@Aandi: Wow someone really did touch a nerve!, The big question all your research doesn't answer is the one raised in the first post of this thread.

"It's still unbelievable that with everything going on in the world, Global warming, Global Energy crisis EQT still seem unable to get sufficient "Big Wallet" backing in order to get any of their projects over the line."

Your detailed research only adds weight to the question as to what if anything, is going wrong with the business model

I note also you state regarding the £16M cash from last years placing, "Without it, wee would have stalled", which again raises queries as to what is happening with the companies revenue streams, at present the biggest EQT revenue stream is the shareholders.

£16M at 1.5p looked to be an excellent return compared to the previous 0.45p, but now we are back at 0.75p and still having to rattle the shareholder tin, to cover development project costs for projects we cant get to completion.

Trading update, Full year results i don't really care, you are being pedantic .

@Aandi: All the EQT projects look on the face of it to offer a tremendous return, the debate is will they actually stretch us beyond breaking before we can get those returns. At the moment the company's business model puts us at high risk of the global shortage of investment, more than some are overly comfortable.

Get one of the large projects over the line and some cash returned to the coffers, it may take on a whole new complexion.

@Aandi: "please answer so I can give your posts some credence and I know you have done your research."

We are all impressed with your research, but sometimes you are in danger of appearing like a teenager defending his ugly girlfriend, sometimes you just have to admit that she ain't that pretty, but you still like to have her around and are hoping for her to blossom at some stage !