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We are not down on yesterday at all, exact same mid price, but another UT at 11.00 today again giving a misleading impression to catch the unwary perhaps although it's just supposed to be a technical thing. But I thought UTs were supposed to occur in auction only so these don't make sense. The important thing is that current NPV must be at least well over £1.
The reason they use terms like 'modest' is because the partner requires them not to disclose precise terms. Nevertheless they do give an indication and are intended not to overstate and therefore mislead investors. For example the use of 'modest' for the Sweetbiotix payments rather than 'low'. IMO they would have used 'low' for £100k-200ks. I think 'modest' would therefore indicate £300k-400ks; and significant/substantial would have been used for the £500k and above range. Given the relatively 'modest' overheads for the company even that first payment is useful even though we are projecting to hit breakeven, small profit shortly anyway.
As for the Sweetbiotix deal generally. Remember that the first batch of recurring revenues is about to cover costs. The next batch of recurring revenues will thus be recurring profits and so on. And Opti have now announced that they have set in train a deal that will deliver a further sequence of profit revenues to add very substantially to all the others. And some people were disappointed. As for exclusivity SOH has made it clear that there are performance clauses as always, that they have other strains of fibres to deal with others, and also I think that exclusivity here indicates that the company has confidence that the partner has the resources and the clout to deliver scale.
This was given an NPV of 97p last year and many thought that was harsh/over cautious. Since then we've had had many cash-generating deals like Holland & Barrett and will draw in a major increase in revenue in the second half even without this deal. We have plenty of cash and have only ever raised a tiny fraction of that for equivalent companies (and all at much lower than current sp - so unlike Aim companies). We have very small, relatively fixed, overheads for a company with such a global,, multi-product, multi-market reach. That's down to it's business model which many do still not appreciate. It's been compared to the Arm business model and many who sold Arm when it multi-bagged only to multi-bag again say they are not going to make the same mistake with Opti. Some have said £2 in medium term to £4 in longer term because of the nature of that business model. But the problem has been busy bee traders selling into any progress and we need proper investors including IIs to hoover up traders' positions so that we can get on with reflecting true value and huge potential. Some of course think that the trading has done no harm but it has driven the company to explore issuing new shares on NASDAQ. Let's see.
I think it's pretty much an automated process but who knows. For a small volume stock like this it may be more likely to have anomalies and we also have intra-day UTs even in very low volume which always seem a bit strange to me. The constant 10k sells are what hold back any progress - traders and/or stale bulls.
Today's progress halted as usual by short-termist traders but someone has stepped in to buy £87k's worth. Hopefully indicative that investors will buy up traders' sells and gradually replace them to give a real prospect of sustained progress to quickly get back to NPV of over £1 and then move on from there.
Not sure how you would see my questions as an "attack" and if my posts can sometimes seem a tad acerbic then it might be as a result of the 'quality' and 'motivation' of the posts I often respond to. BTW you'll know that sales this year have been very promising and they have a healthy cash position. Like others I have been disappointed at how long it has taken but I have confidence in the company and that and an open mind are not mutually exclusive. I wish you well with your investment.