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Great find
Cash proceeds
Sales channel preserved and therefore continued instrument + consumables sales
Reduction in operating costs
Another step towards redemption
PS: Multiple of circa 2x sales so shouldn't YGEN get that valuation?
Advanced Human Imaging went from $0.3 to $2.71 on no news today / currently halted!
Perhaps YGEN can do something similar next week and move from 0.2p to 1.8p!
Even then will be £60m market cap........only......
With the transition from Covid back to core, and SVB loan, it would have been trickier.
But, now, with a cleaner focus on core and it being back to growth, restructuring done / nearly done with equity raise, SVB facility 1.5 years in and a path to cash flow positive, then it is possible.
I suspect that is what management is doing - Taiwan divestment + debt refinancing.
The other thing I would be doing, if I were them, is negotiating a commercial contract(s) that involve(s) upfront investment (by way of machine placements and future consumables) + improved tiered pricing on consumables based on volume for Ranger technology.
This should be a very cash generative business save as to growth investments!
Management knows who I am - I have corresponded with them via PR agency before and was in attendance at the CMD and various online sessions. But my point is, if I am confident I can, they can!
Some rational posts by Slich and OG.
I continue to maintain that YGEN have some great products, extensive geographic coverage and hold some key relationships with key players in the sector. We have been disappointed by its financial management and execution plans. But with £20m turnover, 55% GP and above qualities, there is no way we should only be valued at circa £7m.
The activities within YGEN across hires, sales conferences and underpinned by good growth in its core suggest the company is back on track. The only issue, and one which is dragging its share price, is certainty re funding situation.
Therefore management of YGEN, please give us that clarity. Taiwan divestment. Trading performance ahead of expectation. EBITDA positive. New financing / refinancing. Whatever it is. I am sure there are loan providers out there to support a business at our stage & profile. Gosh, I can get some for you if needed! Get us clarity on this front and I am confident YGEN will be back to 1p pronto! Then to grow from there.....
BUZZ – T – Mobile, AT&T, Verizon fall as Amazon to offer low – priced mobile services
14:09
* Shares of the largest U.S. telecom firms fall premarket, with T-Mobile US Inc dropping 6.8%, AT&T down 6% and Verizon Communications sliding 5.5%
* A Bloomberg report said Amazon.com Inc has been in talks with wireless carriers VZ, TMUS and Dish Network Corp to offer low-cost mobile services in the U.S.
* The service would allow Amazon Prime members wireless plans for $10 a month or possibly for free and bolster loyalty among its biggest spending customers - BBG report
* Dish Network Corp shares jump 7.8%
* WSJ previously reported Dish was in talks to sell its wireless plans through Amazon.com, which would open up a large sales channel for the company
Yep.....that's the news!
But baffling re share price action. Won't it add to demand? And it is up to the providers to decide what price they may wish to sell to Amazon at?
Also, Amazon can just gobble up Vodafone for Europe and Africa!
The other thing people tend to forget / ignore is the user base of Vodafone - from last records, circa 600m subscribers across all its territories and channel offering. On average therefore, Vodafone is earning, based on €45b revenue, circa €75 ARPU per annum. Price inflation will help, but in this world of data, and they are just beginning to across IOT, there is huge value in this user base alone. Even if Germany users are falling, there is net growth across its base.
To put it into perspective, Netflix has 233m subscribers. They also need to invest heavily in content but now trying to better monetise their asset ie user by advertising and removing free sharing. Netflix recorded $32b revenue last year with net profit of $4.5b. They have circa $14b of debt. Their market cap is a whopping $175b!
So, make your own assessment! Think who can and will benefit from 600m user base across UK, Europe and Sub-Saharan.
This has all the signs of a walk down in price, before a full takeover - increasing the premium so it is approved by shareholders - 100p offer will be 31% premium and an opportunistic deal!
Doesn't make sense. We are now circa €24b market cap, plus €33b debt = €57b EV. A very simple sum of parts will get you easily to €80b, which means 2x current market cap ie circa 140p.
EBITDA is €13.3b ie EV is 4x EBITDA. Yes, FCF impacted near term BUT a combination of cost cutting, energy cost subsiding, corporate M&A and debt reduction from remaining Vantage disposal more than supports a higher EV. Dividend IS sustainable.
Something is up with the SP action and it isn't based on fundamentals!
I have been biding my time to further add onto my YGEN position, albeit nibbling for my ISA 2023/24 allocation. Reason was to wait for more concrete news & progress updates. The recent FY trading update was encouraging with all core businesses in growth and their comment re not progressing with strategic investment to avoid dilutive impact, if taken at face value, is a positive in my view.
There has been limited other RNSs - and that's frustrating. But I woke up today thinking it could be due to the restructuring that was and is still happening. Company could be restricted in what they can / should say in this period.
We are at £7m market cap and even a low ball offer at $50m, equivalent to 1.25p, represents a big upside from here. Petty cash to some of the larger diagnostics players, some of whom are already using our tech / offering, so perhaps a matter of time after successful testing. I am convinced a takeover is the exit route for management and shareholders, question is what price. I would like to think (and hope) it is north of 2p.
Perhaps it is time to add.
£19m turnover with 55% margin, ie £10.5m GP.
Core revenue growing at 20%+
Someone with similar & bigger distribution channels can just buy this over for a cheeky £32m ie 1p, and payback within 3 years without all the overheads!
Should be 8-10x higher, agreed!
Hi Davand, no - not interested in the legal action as I don't think it will get anywhere, and will just become another distraction for the company, when we need it to deliver!
I think it is possible, although would need 75% vote I imagine.
They might also delist and re-list in US - especially if US sales starts to take off.
I just wish management can re-create the excitement we all had with YGEN and back it up with new contracts and financials - what happened to making RNSs on new business wins?
Hi Davand, I am still here.
Just silenced by the company's silence and our share price performance.
A £19m turnover business with 55% gross margin, and a portfolio of core products & services that is gaining traction, including the proprietary Ranger Technology. Yet, valued at under £8m.
I sincerely hope management are working 24/7 to turn this around and announce positive news ASAP.
I maintain that based on run rate, growth of 20-30% can be achieved in FY2023/24, which means we will be +ve EBITDA. With proper working capital management, which I hope the interim CFO will bring, then no need for significant further cash injection other than Taiwan divestment.
The only comfort, if there is any to be drawn, is that BGF and all the directors are fully invested themselves.
Come on YGEN - do and say something!