RE: on the move?8 Aug 2016 23:07
Yes. I set it up for Prem which is my latest a holding. We have a tips section on there without fear of being banned.
Ultimately with stocks like pip- you are betting on more people buying than selling the shares so it's a case of predicting demand. I think there will be demand for this stock because the new contracts are IMO significant. I missed out on craw and I know craw well as I've used their meat. I looked at craw at 2p, 5p etc and now it's 80p.
The key is profitability. On pip its predicting when that is before the company tell us. I put it to you that the 4 contacts announced could well push pip into profitability therefore it will be game on.
Craw which i mentioned traces on a p/e of 60 or so. IE for every £1 earned, shareholders are paying £60 for the priveledge of owning the shares. A cash flow positive company making say £2 mill per year will not be valued at £1.6 million. More like £20 mill. And that's the key here. If you think that pip will make say £2 mill per year then this is undervalued by a huge margin. Even taking into account the loans and debt etc.
I think the contracts after break even are very profitable. These companies have fixed costs- IE staff, utilities, pensions, rent etc. After the point that this is all paid I would expect good profits. We obviously don't know how much but look at the news over past 3 months and I think there is a good chance of making a good amount of cash here.