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I did the same and took the decision to get out around a month ago when the previous deal was rejected. I'd been here from the start, in and out but I am now definitely out. Just popped back to look at the results and everything that made me sell has been confirmed. This is now a massive turnaround play and frankly I can't see it happening, if you are an income investor it will be a long time perhaps never before a divi can be reinstated.
Unfortunately, the competition is just too good, they are investing and winning customers. It must be pretty easy to sell against IDD, when your competition can't actually deliver because its staff are out on strike and they will be again as things get tougher, layoffs are required, pay rises can't be given. The only way you can pay your staff more is by being successful and the latest financial position says decline and bust . A lack of change in the modern world will take out any commercial organisation and unfortunately this is an old world business.
The only other number published in what was a fairly light TD was the cash position. Looking back at the 1/2 year results there was only £63k in the bank so we've accumulated £550k from the 1/2 year. As cash usually lags in a growth business this could represent a further positive sign (full detail only available in the full year position).
Overall what was expected. Growth in software licencing reoccurring revenues 133% awesome. Would have loved them to be more bullish and put out 'profit expected to be in excess of XX' but guess we'll need to wait. Disappointed to see lines of stock sold at 55p but price is up so there must be some order action for shares. A long wait to full year results and the next trading update, we can hopefully get a RNS or two out on the big deals we have in pipeline. What a growth play this share is, very comfortable with my stake and will likely continue to add on any weakness. Buys going through +60p is great to see. Over £1 by Christmas no problem.
It stalled for a bit but it has moved up nicely in the last 6 weeks. There is value here and the market is recognising it, particularly in light of the gambling review which seems balanced enough not to scare the horses. There also remains a good chance of acquisition activity in this sector. Overall positive sentiment.
As always little posting activity when shares are rising steadily :)
Question raised - Dr Basu & Mr Farquhar can you disclose your level of participation in the recent fund raise?
How would you respond to the question that your level of participation does not seem to reflect yours and the Chairmans statements about opportunities and growth? What should investor read from your level of participation and the confidence in the business moving forward?
I personally am in and believe things are moving in the right direction. The business will become a good business, revenues now appear to be materially growing. I also believe that the current management team have destroyed huge value over the years and made significant mistakes, for this we need to understand the price they pay.
'The Placing has been undertaken with new and existing institutional investors in the Company. Kromek Directors are participating in the Placing and Directors' Subscription.'
I read this statement as the main placement is done subject to existing shareholder approval, the open offer to all shareholders is optional.
Interesting that Thalassa Holdings have decided to sell a small percentage of their holding so close to the trading update and in advance of the significant growth story to be told to the market through the next few results updates.
They built their stake in late 2019 (price then about 35p) to April 2020 (around 60p). The have obviously sat on the rise until now, then taking a small profit. Maybe this is a prudent trade, perhaps they want some profit for their efforts. One to watch moving forward and it could be that they want to move more considering the price is not moving up. If they keep selling into the rise it could hold us up a little, but I am sure they hope for larger gains and I am sure there are more buyers than sellers given the businesses trajectory.
After a good volume day yesterday, we went further today, 80,000 shares in the last two days. There are a few sells but buyers seem to be on top. The price has not moved so there is some resistance at this level. The fact there has been both buyers and sellers and this new entrants in at this price, hopefully allows us to push higher on news without those who have already sold holding us back. Tick tock, trading update soon.
Impressive is a great word. Particularly against quite an interesting macro environment. The published outlook is more upbeat than Speedy's softening stance. I'd hope for an improvement in the SP to bring us to a more average p/e ratio, but we might need to get through the remainder of this year and have an outlook on 2024 interest rates before we see a major rerating.
Welcome Jeffrey_Scott and congratulations on your first post on LSE. Welcome to Newmark Security. It has been a lonely place for Hedgehog and I so it is great to have a new contributor. Hedgehog has been posting a significant amount of valuable content is the last 12 months that is worth reviewing, and the last 6 months has been quite a ride with the price rising from 25p to nearly 60p. There is so much further to go given we still stand at a market cap of £5m and will likely post profits of more that £1m with an outlook that is likely to be very positive. Good luck here if you have taken a stake, and given the trading update is less than a month away it is a great time for a top up too :)
Looking back over the trading of this share at these levels, I cannot see why we will get many sellers running into the next trading update. Who wants to sell when you are expecting a £1m+ profit and you expect sentiment to be strong for the year ahead. Most volume/buyers have entered in the 50p range some as high as 75p, very few in the 25-50p range. You then have the long term holders, these aren't going to bail when the outlook is so strong. I could be wrong but we have sailed through the 30's, 40's and now we look to enter the 60's. Last chance below 60p to buy (I have just topped up at 59p with another small add).
I had an update from Marie-Clare today who responded to an email of last week. As anticipated we should expect a trading update from around mid-May, she is going to see if the date of the release can be announced so we know the exact day. Obviously she cannot comment on performance ahead of the release. New auditors are embedding well, she sees no reason that finals won't be later than the end of September. I recommended that given the new strategy and successes that we ought to look at engaging Equity Developments to write up a note. She said she'd take a look at that. Released with the results I think it would he really useful to have something investors can pick up that will give projections and strategy considerations. Whether it moves forward is very much dependent on time/cost. I provided thoughts on the most recent presentations and that we need to find someone of embedding our market cap with the emphasis that we are under valued given our revised strategy, return to profit and growing markets. Again she agreed to work this in somehow, some of your comparison Hedghog are mind blowing. She seemed upbeat, if you can tell that from an email. Exciting times. DYOR etc...
It is fair to say that based on this volume we are heading out of the single digit share price territory. 30m shares traded in the last 3 days plus more today. We went down so quickly in the last month a rise back to 10p seems reasonable in the next few trading days if the volume continues. Let's hope for some weekend press coverage.
I've enjoyed trading this in the 80-100 range but can now see us breaking out to the upside. Let's face it, the majority of Deliveroo customers are not the ones significantly impacted by Cost of Living, yes some will have thought twice but most have carried on ordering, With some expected food deflation to come, lower fuel costs and pay rise's in the mix, we should be through the worst, and now have an opportunity for things to tick up. With business costs under control and a focus on value add revenues such as promotion and advertising there are again further upsides, we'll experience some resistance around 120, could now be in a 100-120 range.
We have had a number of cash raises over the years, almost doubling the shares in the market since float (2013). With cash burn now under some control and the investments in the products made, it is time to earn some money for shareholders, not dilute them further. Confidence will be a big thing here, most existing shareholders have little but I hope the tide is turning, the volume in the last few days speaks for itself, and we'll have some shareholders already in profit. It'll be a while for me.