The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
For Vast to actually say they are considering the possibility they won't get the diamonds (either in time to help with cashflow issues or at all) is worrying, especially in a country that is notorious for corruption and under handed deals.
I suppose there has always been the possibility the diamonds were "disposed of" (stolen, misplaced, sold) ages ago. Maybe that's why the share price didn't rocket as much as it might have when Vast announced the court had ruled in their fever. I know they were only industrial grade diamonds and weren't going to end up on engagement rings, but they would have still helped a lot with cashflow and had a much bigger influence on the share price unless of course many realists (ie experienced investors) thought the diamond news was too good to be true.
Maybe the government thought they would never have to return them (and now they do, can't ?).
At 14.56 jam said
...the RNS states today is the ex divident date but says you will be paid on the 14th ‘shareholders of record on the 2nd June’ which is tommorow.
If that was the case then people could buy today at 0.3p and also be entitled to the dividend which would be the bargain of the century.
Stockopedia shows $5.31m cash so circa $5m current cash (£4.285m) sounds about right.
Does anyone else have any estimates about how much the dividend payment will be and whether or not people who buy today at 0.3p will still be entitled to it which cannot be the case...
In 2020 ASOS had £-94m net debt and £408m cash (a negative debt number means more cash than debt).
In 2022 net debt was plus £533m with £323m cash.
Half a billion quid of debt is an awful lot.
In 2020, operating profit was £151m. In 2022 they lost £9.8m.
But in 2020 sales were £3.2bn and in 2022 sales were £3.9bn so sales are up but they have gone from a net debt position of minus £94 million to plus £533 million.
It is going to take a long time to clear half a billion quid worth of debt.
Noba you are obviously under water telling people big orders are being filled. There are no big orders. Just big sellers.
This company turns over £31k every six months while spending £1.8 million. Even if costs fall and orders come in from this new supplier they still need to sell hundreds of thousands of pounds worth of product.
They need dozens more deals like the one they announced yesterday before they will be anywhere near profitable. In these difficult times it's mostly cash generative profitable companies that are worth investing in.
This rose on hype and now reality is setting in.
Be down >20% by close.
Yes this could be big but with sales of less than 100 grand a year and losses of millions they just have such a long way to go.
The share price aint going anywhere short-term passed way it is now.
Maybe if they can invent some sort of AI cannaboid lotion they might be onto something lol.
Warrants can be a good thing, but further down the road they can also be a bad thing leading to an ugly thing
The Good
The non-exec director will work hard to try and make the company succeed to increase the price of the shares.
The Bad
In 12 months time, if the share price is 10p, the non exec can vest their right (but not their obligation) to buy the shares for 0.97p. They will have a 10 bagger.
The Ugly
Having purchased the shares for 0.97p they will then sell large amounts at 10p driving the price down. They can then continue to do this every month for the next 24 months until all 2,000,000 shares are sold. Obviously the price will then drop from 10p but just assume it stays at 10p, they would get £200,000 for shares they paid £19,400 for.
So on a positive note, any one buying today for 1p can do the same. The big differences if these drop back to 0.5p anyone buying at 1p today will lose half of their money but the non-exec is not obliged to buy the shares at all if they don't want to.
Just trying to explain how warrants work for those who might not know.
Definitely worth a few trades today, but they are only turning over £31,000 every six months but are spending £1.8 million.
They would have to sell sooooo much product with this new retailer and it absolutely will not happen.
Will be highly lost making for the considerable future if not forever.
Yes, there are big sellers in the background because they know the stock is going to re-rate and go even higher which is why they are selling.
Erm... hold on... that's doesn't make any sense??
Why would the professionals be selling if this was going to keep going up?
Like many similar RNS releases, this is positive news, but will probably take ages to have any cash generative effect.
Facts
1) LBE have never had any revenue at all.
2) £11m working capital.
3) £25m debt.
Japan Petrolium Exploration to invest $150m over three years on exploration with no guarantee they will find anything.
They are 50% partners but Longboat will need to fund some of the exploration costs so will need to tap the market for money.
Look what happened to Deltic Energy. They found what might be the largest gas discovery ever in the North Sea and their share price dropped from 4p pre-drill to <2p after the discovery.
These things take ages. Way overpriced and rise way too steep at +120% intra day.
Will fall back by end of week (else I'll come back and amit I was wrong :-).
Someone has already used the word "very" bad, definitely dire.
Not just profit falling from $148m to $24m (which is a 83.7% drop), or cash down from $386m to $143m (a 70% drop). It's the debt. From $86m net cash to $175m net debt.
Stockopedia gives Hochschild a rank of 95! Wow. Let's see what that changes to in a week or so.
However, reserves up 35% and resources up 18%
So still a lot of potential if they can get their act together.
Sorry if someone has already mentioned this, just been talking to a finance director about BACS payments. Yes, I know this won't be a BACS payment, but it will be an electronic transfer.
Similar to the old days when a cheque took 4 days to clear, modern electronic transfers still take 3 days for the recipient to actually receive cleared funds.
So the payment could have left the sellers account on Monday morning and and cleared funds would be declared tomorrow in AMC's bank account.
This is supported by the time of the RNS which was mid-morning. If it had been a 7am RNS the transfer must have happened on Friday because the RNS said funds had been transferred, but because the RNS was not released until mid morning it means funds were transferred that morning.
Based on this I would not expect a 7am RNS tomorrow but would expect another mid morning RNS to confirm the funds are actually in AMC's bank account.
I checked AMC out on Stockopedia and I was quite surprised they did not get any red dots at the top of the screen.
28 Quality
27 Rank
Got a "neutral" rating which is much better than the "Sucker stock" rating many similar AIM mining stocks get.
As for finances, again, pretty good even before the recent sale:-
Cash = $5.3m
Debt = - (minus) $5.3m (so no debt)
2022 Net profit (minus) -$3.3m on $0 revenue, but forecast revenues were $24m with a $9.1m net profit.
All in all a lot better than I was expecting. Let's just hope the cash arrives...
So the new shares that will be issued are 20% dilution based on RNS.
And still a lot of boxes need to be ticked before today's news becomes reality.
Existing holders will be diluted 90%. They will need a big backer to come in with the money and in return they will get 90% of the company for that amount of money.
Once Morses delist you can trade Your shares for up to 12 months but will not be entitled to receive any new shares as there will not be any new shares for the public as they are no longer a PLC.
On Wednesday you could buy for around 0.28. The bid today is 0.28 with a 52% spread so would have only broken even.
This recent rise might just be to sucker some buyers in. This wasn't highly shorted so don't think there will be lots of buys later today to close short positions.
This share had it's fun day a few Friday's ago when it went up to 1.4p but I think that's over.
Must just be me.
The posts are there now.
Just popped on to have a quick read of the posts but most of today's posts seems to be missing??
Last post 7.29am. This post 23.40...
So I haven't been able to see most of what people have said today.
My view is, even if the UK government is not going to support oil drilling in the North Sea as much as they have over the last few decades, we know for certain there is a gas shortage and the UK needs gas so today's news is very welcome.
The company is worth more than half a million pound in theory, but if they do a 19 for 1 share issue to raise the £20 million they (might) need to pay all the claims that will be 90% dilution.
That means £1,000 invested today even at 0.36p will become just £100 after they give 90% of the company away.
The value of the company would then need to go up 9 times before you would break even let alone make a profit.
...but it's hoping to get it back soon :-)
Ah - that's a bit rough
Yes - maybe on an industrial scale!
I thought Diamonds were a girl's best friend?
Not when they are on the end of a drill!
At 8.12 ttla wrote...
"I jumped in early, can't believe I got them under 2p, well pleased!"
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You can get three of them for under 2p !
Apologies I've just had a few beers but I think a "post of the day" to end the day with some light-hearted, harmless humour is a good idea.
We live and learn. This might still go up. The Diamonds are obviously nowhere near as valuable as everybody thinks because whilst some of the reason this has not gone up is because they do not have the diamond yet, but if they were as valuable as some people have been suggesting this would be up a lot more just on pure speculation (the hope) of getting them.
Might be wrong....
Think I'll stick to my main listing shares...
https://twitter.com/ShoresGeordie/status/1621218476403658753?t=qHLYiNN0f1vfmjArfAbIuA&s=19