The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Hi, I've been lurking here since 2017, and rarely feel I have anything to offer. But on this occasion, I do feel the need the step in and say that you're bang out of order claiming TDM 'has multiple accounts' or is somehow set on bringing down the share, Claret.
TDM is one of the few people on this board who actually produces any content of note, and I for one get a great deal of value out of his posts. Keep up the good work!
"As at 31 October 2018 (being the latest practicable date prior to the publication of this document), the Company had 20,983,343,705 Existing Ordinary Shares in issue and a mid-market price at the close of business on such date of 0.0235 pence per share. With shares of low denominations, small absolute movements in the share price can represent large percentage movements resulting in volatility. The Board also believes that the bid-offer spread on shares priced at low absolute levels can be disproportionate to the share price and therefore to the detriment of Shareholders.
The Board is of the view that it would benefit the Company and Shareholders to reduce the number of Existing Ordinary Shares in issue with a resulting adjustment in the market price of such shares, by consolidating every 100 Existing Ordinary Shares of 0.01 pence each into one New Ordinary Share of one pence each. This is expected to assist in reducing the volatility in the Company’s share price and enable a more consistent valuation of the Company, making the Company’s shares more attractive to institutional shareholders."
100/1.
Myro117, I agree. Having several billion shares in issue and a SP which rounds up or down several significant points, based on the precision of the ticker you happen to be using, may be functional but it certainly isn't a fantastic look.
I reckon they've been planning this for a while; the ticker on the website reads 0.02p, which snapped up to 0.03 when we hit 0.025 last week. Whoever embedded the ticker either didn't think it through (entirely possible) or was anticipating a consolidation which would cause it to show relevant, granular information.
Consolidation here is a very good way to smarten up the company IMO. Not at all concerned, good news if anything.
DYOR, GLA
Forecast sales of £2.2m in the coming financial year; if they can stick to that - and keep the quarterly cost run rate at £400k - we're looking at an EBITDA profit in 12 months' time.
Great to hear that they're aware of Proxama legacy issues and the ongoing importance of shareholder comms too.
Keep up the good work!
AIMHO, GLA
Namely, that:
1. We can reasonably treat the quarterly overhead run rate of ~£400,000 reported in September as a rough constant for the next two quarters or so;
2. The reported monthly sales run rates for the end of July (~£50,000), August (~£50,000) and September (~£70,000) can be reasonably treated as monthly totals;
3. That the end-of-September sales run rate of ~£70,000 stays fairly constant for the remainder of H2;
Then we'd be heading towards a pre-tax loss of about £420,000 for H2 2018.
Of course, if the run rate continues to soar (or, perhaps, we receive up-front payments from Caci or Talon) then this figure could potentially start approaching break-even, although accepting the assumptions above we'd need to be averaging £210,000 per month in sales in each of October, November and December to actually hit zero!
Equally, of course, if the costs *do* scale with the client-base (despite the self-service platform investment) then this would sap at any gains.
Still a risk at face-value, granted. But a market-cap still sleeping below £6m. when there is so much palpable momentum in the company, is what singles this out for me as a potential diamond in the rough. If Slade and the BOD can keep this up, IMO we're looking at a re-rate in under 12 months.
DYOR, GLA.
Long-time lurker, invested a small amount here over the past week or so. Really impressed with the rapid turnaround since PROX, seems as though Mark Slade's "lean and focused team" has every chance of transforming this company's prospects and generating plenty of shareholder value in the not too distant future. IMO the BOD has shown both conviction and common sense in shedding the payments business and remoulding the company (and its marketing efforts) around the value of the data.
I also feel strongly as though the current SP has much more to do with the legacy of PROX than the enormous potential of LSAI. Very high likelihood this is under-researched, I feel like I may have had a bargain at this price but I guess I shall have to see! Very interesting times ahead (at the very least).
AIMO, GLA.