RE: I can sell for 26.226 Nov 2021 09:55
The biggest issue, is that as with most UK manufacturing, (and Colin stated it yesterday) they just can't compete on price with China, so unless there is a clear differentiator in the product (which in the governments eyes there clearly isn't) then the consumer will 9 times out of 10 go for the cheapest.
The differentiator here was that the government stated that they were prepared to pay a premium to protect UK supply lines, and that no long seems to be the case, and without that backing, with regards to Covid, ODX are now just a very small fish in what has become a very crowded pond.
Based on yesterdays figures the company is worth no more than 20p (as the china food tolerance revenue stream looks to be at risk also, at least in the short term). I think sentiment will keep it in the 20-30p range between now and approval news which could see a rise, but without confirmed orders that will just retrace to this level.
The big issue is that the company have lost all trust, there continual lies and half truths have been laid bare for all to see, and now everyone is looking at what they say with an air of suspicion.
We were told many times their capacity was 2M, (1M own, 1M DHSC), now they let slip its only 600K of their own capacity, but they has still p****ed the placing money up against the wall.
If you look at this in the cold light of day, its a concerning situation. I know the CFO tried to make out that the cash position was strong but it simply isn't, the biggest selling point he made was that they could increase the overdraft four fold, that was simply an attempt to deflect from the fact that unless things turn around pretty quickly they will need more help from the market, and like GDR that will come at a very high cost for the existing shareholders.
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