The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
For me, the negative in the RNS was the end of hope at Royston. Even this has the silver lining that we don't need to spend more money on it. This probably accounts for the mark-down.
Borrowing money, where possible, to accelerate the development of proven resources without equity dilution maximises the NPV of those resources and is economically sound. The board would be rightly criticised if they slow-walked development by retaining a comfortable, but largely unproductive, cash pile.
I think the market is doing its best to process the info… Long term prospects remain excellent, but if you go for a big gas flow and come up with oil and water then it is clear that not everything is fully understood. GLA
Yes. Very good news. TTAU has a bunch of warrants expiring on 28/02/2022 at 1.4p strike. Management will be motivated to get the share price well north of that ahead of time. Based on progress to date, the company is definitely in a position to merit this.
Holding 49.9% of Corallian makes RBD the indisputable "kingmaker" of Corallian when it comes to their next steps, IPO, full consolidation or whatever. It is a de facto controlling interest. The move announced today will make more sense if/when RBD sees more value in Corallian than the NPV of Victory alone. GLA
It values the stake in Corallian at £3.5m at today’s share price which is fair enough, but if West Newton comes in, the purchase could start to look expensive versus the extra NPV. One could see that as a nice problem to have. There’s probably more to this than meets the eye as RBD are presumably looking beyond the West Newton EWT in their planning scenarios by now. GLA
Good luck all
Yes, another good day and with more ahead I believe...
I think resolving the dilemma is about knowing what else you are going to do with the money? At the moment, all you have are numbers on a spreadsheet until you want to do something else with the money. There is no single right answer and for every fellow traveller who says you should top slice there will be another who says you should ride your winners. Someone trying to pay off a mortgage could and probably should look at things differently to someone trying to decide whether to buy a second Jag or to another one building a pot that will eventually be inherited by the kids. If you seek formal regulated advice, you know what you will get, which is some kind of balanced portfolio that gives you just enough to pay the advisory fees and a little bit over. At the end of the day all you can do is know your alternative use for the cash, understand the fundamentals of each investment and then trust your gut. My gut tells me that we will reach a flatter period for Pensana but that we ain’t there yet. GLA
Hi Gloster. You sounded quite positive about the NGM deal on 19 February, but less so today. Did you come across something new that changed your opinion? It's been a long old journey, but from what I can see, NGM is a lot better than waiting some more.... GLA
I think the issue is that when they complete the drilling campaign they can call on warrant-holders to exercise at 0.7p. The better the drilling results, the closer this time gets, so some shareholders look to sell shares to be ready to subscribe for the warrants. I think they just need to get it out of the way and then we can all march forward. GLA
I was trying to do something else at the same time as the Q&A today but it didn't work out - the Q&A was surprisingly informative and kept my attention throughout. It is clear I think that WN is a potential multi-bagger, so my main worry has been that the lack of asset update information means that money is raised by RBD at prices that unnecessarily dilute long term shareholders. The defence offered was that they have in fact bought more WN at an even cheaper price while it was distressed during the Covid meltdown. Without doing the maths, I guess that could work out. In any event, I was encouraged by the frequent reference to monetisation which suggests that the next move will be to do just that; not to dilute shareholders further. To be of industry interest, WN has got to be worth north of £1bn, so sitting on a market cap of £53m gives plenty of upside. It's an investment for 6-12 months, not yet one for the day traders.....GLA
Not much the matter with the interview in my view. A little bit of expectation management for the short term, but nothing to be concerned about and plenty to look forward to. Price reaction is overdone, but that's what you get with a tightly held stock, whether its up or down. GLA
Yes, I think it is positive. The simpler deal would have been to issue MTR paper to the KML minorities, but they have not done this. The proposed deal cuts the funding call on MTR in half and avoids creating a bunch of potential sellers of undervalued MTR paper just at the time of a proposed dual listing. GLA
Hi Wolfie. As far as I understand, there is nothing in the ISA tax rules to prevent you holding an overseas stock. Obviously, it also depends on what the particular ISA provider will support, but most would be OK. GLA
SP Angel have reiterated their Strong Buy recommendation for UJO today on the back of the West Newton development news. They have not commented on RBD (not an SPA client), but that should equate to Strong Buy X 3 for RBD. GLA
Based on listed comparators, PRE should be worth £500m to £1.5bn once in production. That’s at least 10X from here. These numbers can be found by personal research but were also mentioned in a recent video interview given by PA. Scroll back through this thread for the link. With the BFS and then funding confirmation, we should be well on our way by the end of this year. Could easily be £1 per share by then which is 3X from now. GLA
roughly 30 minutes in
Good to see this getting some positive attention today. I was beginning to think that some new kind of quantum physics theory would be needed to explain why the RBD share price was stuck in a motionless void in the fabric of the space-time continuum. I can take the weekend off then after all!! GLA