Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
The original share price was around 135p. There was a SIPS or similar scheme for awarding performance with a 1:1 share allocation. Old filing shows this. Can't remember name but ut was based on SP being increased. That seems to have changed into SIPS scheme at a price range of much lower currently. I'd rather buy shares at 13p than 40p or even 140p as the upside is far greater and any rise in SP will be a significant gain. The point is that there is no incentive for the SP to rise until all the SIPS shares needed have been bought. Then it's up, but the question is when.
Latest comment (not mine) on ADVFN:
"You have to question why their long in the tooth marketing manager with a TV background couldn't get them exposure on prime time TV tonight with the apprentice running an escape room task."
Some drop... well, running a company and wiping out 95% of the shareholder value doesn't look to me like 7 years of successful work but again, if you feel that is, let's agree to differ. As for comms, I think you're the only person to think their comms is good; many many people don't understand why XP / EH or Boom are so hidden, but again, I respect your view. Are we to wait another 7 years for the market to nap? If so, I'll sell now and cut my losses!
I respect your opinion too but I think you missed a few key points:
- different business it may be and successful in the UK, but the rest of the world has been abandoned as a result. What happened to franchising in the US or anywhere else for that matter. I think there were around 57 locations worldwide in 2017 (I'm talking EH of course), now outside the UK only 20 odd. That in itself is fine IF the SP goes up to reflect the success of the very narrow UK focus. It has instead dropped 90-95%. The issue is any strategy is only as good as the SP reflects.
- SIPS - in total there seem to be around 5m SIPS shares. That's not tiny and the big issue here is one buys shares like this cheap. As long as this continues, the SP won't rise as they want to continue buying very cheap. The original SIPS was awarded for a far higher price, now it's so low it will contribute considerable upside for the buyers BUT not as long as they keep wanting to buy.
- most of all, you haven't addressed the lack of comms. Why would you seems to actively hide the business and not make more of the positive news? That's all part of the extremely hands off management style I see. Looking at the credentials of the board, is that the best they can do to promote the business? I'm not convinced they are trying very hard! Question is why?
I repeat I'm in with a big chunk and want the business to grow but things don't stack up to me at present and I wonder how much longer we linger around 15p?
A little more digging into public domain info reveals an interesting story.
The positive is the recent growth, demand, locations on good terms and brand extension into Boom from EH. If this continues, then it's a good long term bet and has shown itself to be reasonably recession-proof.
However, the share price is 90% down on the initial placing in 2017. Why? From what I can glean, it's a combination maybe of several issues which have stopped institutions jumping in: Being burned from the initial SP, share dilution is huge, SIPS scheme has been rather overused, management style is marmite and v.v.highly remunerated and caused some to jump and fin comms is woeful (one has to assume intentionally given the connections and expertise of the team)..
I am in for the long term and waiting for around 120p before considering a sell. The issue is how much longer until the SIPS is played out, proper news is reported to get interest, no more shares issued and the price truly reflects the achievement and potential. In my experience, even in AIM, prices are there for a reason not arbitrary, so the fact the SP doiesnt rise is because investors see the whole picture (way more than I can) and are wary.
DYOR and DYOC bit for me after some digging, there are gremlins and I can only hope the company gets the SP growth it deserves soon.
Lest hope so as a couple of fellow investors flagged the missing cash to me in TU. Others mention it btw. Also, check share dilution and director share schemes. Good to see director investment but the original scheme was changed to one so low, shares are bought at very low price, hence maybe price kept low to allow more of that buying. All in all, something being done to keep price low.
There is a pattern here. It has lost 90%+ of value since the original float in 2017 and directors seem happy with this looking to future growth fuelled by expansion in EH and BBB. All intl growth stopped and focus solely UK and no news to the point where financial comms is non-existent. Statements show shares hyper diluted from directors SIPS plan, salaries very high and admin expenses also high and not detailed. Maybe a bit of a retirement fund for a handful of people in the SIPS? Good news is the stock has to fly once they have bought enough to retire!