The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Https://www.youtube.com/watch?v=tN4sNXzBC0w&ab_channel=BusinessDayTV
If only they would spin it off, and we could just invest in the USA company perhaps even on the NASDAQ, but what would keep the lights on back home? You echo the same comments I have made about each state having its own choice. Yes it probably is more likely other states may be interested in a successful solution, but we are not seeing any evidence of that yet. If this is an extension (which it sounds like), then they still have only 1 state as a customer, read the first RNS from June, they were offering limited services, which now have been expanded. Better than zero, I will agree, but its hardly a massive take up is it. They got a small contract extension when divided over 5 years, I'm pleased for them really. I doubt it generates much profit by the time its gone back to head office. I do think the company may see increased costs and taxes in these times. Isn't that how wars are paid for?
Yes, you have to accept that the likes of Janus, will have more info that people on this board. As a 10% holder, they would have been sounded out I think. The delayed sells from them wrongly were interpreted as buys. I would expect them to keep dumping, if they were happy to write down 98% of half their shares!
Another RNS to calm the nerves of a few LTH, in what is a very troubling situation.
Is it anew contract or is it an existing one which has been 'expanded'? No values, so assume its small and over 5 years so unlikely to make a material difference. States in America are all independent of each other, so not necessarily so that more states will take this up. Will costs now rise for Israeli companies? For sure, they will.
Talk of this hitting the 30's on the other board. Im surprised you bought again Ripley, though following your posts, you are normally successful. I think im happy not to catch the bottom here, and buy in a few more weeks time. (holding a few at 53p yuk). Market makers (on behalf of someone) are making this uninventable IMO, Buy today, they drop it 5% tomorrow, repeat. Might see a TR1 from reduction soon. ?
This goes ExD in 3 weeks for 1.2p. If you can buy now for around 28.5 you are getting over a 4% yield in 3 weeks. Judging from the results call, things should start to improve here, once the Fermentators are online. Hopefully there is some SP growth as well over the next few months, so currently a good proposition I feel.
Looking forward our core business is in a very strong position, with continued growth momentum seen in our Point-of-Care division and in sales of β-HB. With the capacity expansion at our South Bend facility nearing completion, and already having received our first purchase order and we look forward to delivering strong growth in enzyme fermentation revenues in 2024.
Agree about the purchases, they have not lost much in the scheme of things. I will say I think they bought in good faith - it was CEO, CFO, and 3 x NED - so 5 purchases. Before I sold, I actually had more than the CFO. Not hard at 2p!!!! I think this rapidly accelerated, if you had followed it, what did for them was unseasonable hot September. They had already bought by then, but had a v poor month. If they needed cash flow from this, suddenly they didn't have it. As soon as covenants are breached it was game over, with such a shrewd lender, who I think wanted to be the owner.
Echoing Yvellken post.
Fortune does favour the brave. This was a reasonable proposition to begin with.
There are far more favourable gambles out there Neil, with far lower risk. I think it was the lure of how large the upside was here, had it worked out ok, or if it does spike up to 5p. But its a pure gamble now, not trading or investing. Best of luck.
The share price is also a red flag isnt it, seems the selling is relentless. All those delayed trades people wrongly assumed were buys. No one wants this. A couple of MM's are sub 0.5p now.
I sold most of mine yesterday, then the rest this morning. Agree administration / pre pack looks most likely.
Shame as the company has assets making it worth around the 8M. But there is no way PI's will see this. I realise that now.
I think the situation moved very fast, what I expected to drag on for 3 months, accelerated in to about 3 weeks. Its a binary gamble now, with v low odds IMO. There might be a spike, but I expect they cant afford bills/wages at the end of the month, this will be done today or tomorrow. There are regular 200k sells at any price. I took some losses, but fortunately I sold when I did, many of my purchases were around 2.5p which was the bulk of my exit. Willing to admit I got it wrong Neil. I still think Aurelius will be the buyer, but yeah, of little consolation being right about the deal, if you cant benefit from it. Another lesson from the market.
Yes read the history, Neil was adamant there would be a placing. I said no way.
Anyway, ill leave Neil to it, wonder why he is so keen to post here.
6M shares were short in September. OUCH.
For anyone else reading this - Neil has been wrong about everything else here. He has no clue.
The Sky report is referring to people who paid far higher for their shares. This has hit £3 previously.
The major II's will have averages above 50p, I think they are calling the shots. Directors bought at 10 to 12p.
Https://www.lse.co.uk/rns/SFE/response-to-media-speculation-los29tbnj7cz12p.html
In 2016 this company did make £20M PBT.
It is well capable of generating that type of profit, if anything they have improved many things since then, including the factory which came on line in 2017. I have consistently said that there will be people out there who will want this. I have a few ideas. Many I have already posted. When economy improves this should do well. Especially if we see the DIY boom, from people improving rather than moving. I doubt it will be a PLC at that point, lets hope for a buy out very soon. Directors bought between 10p and 12p - a line in the sand IMO.
Https://news.sky.com/story/london-listed-safestyle-opens-door-to-company-sale-12981794
https://www.lse.co.uk/rns/SFE/response-to-media-speculation-los29tbnj7cz12p.html
Hope they got that short covered.
I think those SWS articles are not very useful IMO. They are kind of AI generated, just looking at some key numbers. If you are going to invest in small caps and AIM stocks, you need to go deeper than a few headline numbers. Yes it has got a lot of debt, but sounds like it has headroom. Below is info from the RNS regarding the debt.
The debt facilities consist of a £70.0m senior finance facility and an undrawn revolving credit and overdraft facility of £25.0m, both maturing in November 2025 but with an option to extend for a further 12 months. Including cash balances of £36.6m, the Group had access to £61.6m of combined liquidity at 1 July 2023.
Nice spot. I do monitor Castings, but not seen the update today because they are on the main market. In terms of geography:
The group operates two iron foundries – Castings P.L.C. (Brownhills, West Midlands) and Wm Lee Limited (Dronfield, Derbyshire) – together with the CNC Speedwell Limited machining operation which is also based in Brownhills.
You never know..
Sounded ok to me. The TU did not provide the previous EBITDA margin, which proactive are reporting as 20.5%. Bit silly to say 'lower' but not quantify by how much in the TU.
Adjusted EBITDA margin was just over 17%, compared to 20.5% in the previous full year, which was attributed to reduced average utilisation, partly reflecting quieter summer months.
https://www.proactiveinvestors.co.uk/companies/news/1029202/alpha-fmc-says-more-positive-market-sentiment-is-returning-1029202.html