Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Only two weeks ago LSAI released a trading update that was far more positive than I ever expected.
The outlook is great while unfortunately (like many other companies) we suffered from the Covid-19.
The current share price doesn’t make this a bad investment nor the lack of interest.
Frankly it makes this a great investment. Everyone is complaining about the share price being too low. If it is and given a good outlook for location verification then this is exactly the time to buy (which I’m doing BTW, over time, babysteps).
Some text from the trading update that will maybe change your mind about LSAI:
core revenues (...) slightly ahead of H1 2019 despite the impact of COVID-19.(...)
implemented a cost reduction programme (...) cash administrative expenses being reduced (...)
cash reserves of approximately £1.7 million (...) will be sufficient for the Company's requirements until Q2 2021. (...)
the Board expects a focus on local advertising which should be a positive driver for the Company's media verification revenues in H2 2020 and especially in Q4(...)
investing significant time and energy into enlarging its data insights customer base, including making its location data available to UK Government departments and pitching for global data projects linked to the COVID-19 data analysis. Although no major contract wins have been secured to date, the Company is still exploring several open opportunities and will provide updates in due course.(...)
making operational overhead cutbacks, which included reducing the Board's and senior management's remuneration.(...)
To date eight paid for tests have been undertaken with the initial feedback from agencies and suppliers being very encouraging and the Company expects to be able to announce further news in the coming months.(...)
The Company's partnership with X-Mode is progressing well and has allowed it to expand its insights customer base and, in particular, pitch for insight deals outside the UK as well as upsell insights to its Verify customers. This gives the Company a greater market opportunity going forward.(...)
While the first half of 2020 was not what anyone had been expecting or indeed hoping for, there are some positive macro trends emerging in our industry. Only last month, Group M (the world's largest advertising agency) told its customers that location verification is critical to brand safety, a milestone which has been a long time coming and something we celebrated internally. (...)
In the second half of 2020, we expect advertising revenues to return, albeit perhaps not to 2019 levels, however, with a renewed focus on local marketing, something which Location Sciences is ideally positioned to benefit from. I am confident we will emerge from this global crisis as a stronger company and better able to deliver shareholder value."
I would not be surprised if multiple parties might be interested in acquiring LSAI.
Hahaha! That’s really funny! A big spender, a whale!
I'll have to disagree. I'd rather see Cameco being forced to buy at the spot market. If Cameco was forced to buy mlbs at spot price then that price would have gone up more than $0.10 per lbs imo. No such thing as free money, we would have benefited more from an increased spot price. I don't like the move. Not at all.
Bless him/her!
This? https://www.proactiveinvestors.co.uk/companies/news/925138/location-sciences-reassuring-trading-update-925138.html
Or this?
https://youtu.be/NIW0t5Ho4dg
Our marketcap is 2.6 million, cash 1.7 million, the business is valued at 0.9 million.
For a company that has contracted or is partnering with some of the largest companies in media advertising, is active in a growing sector, has a first mover advantage, is unique in its kind and could potentially contribute to a Covid-19 solution is 0.9 million fair value?
I think not.
That’s too bad Aerial. Are you averaging down? After todays PR I’ll continue to add as long as the sp is this low. We’ve done far better than I expected and we might be in for unexpected nice surprises.
I’m not saying this should be doing ten times the current share price, but it should definitely be double this price.
Hope you’ll break even soon! (Even better: having a profitable investment)
@aerial I do expect some more interest before that as I think there’ll be news released regarding a new contract/deal before that.
My guess would be they noticed very early on that there were sellers around with larger positions. If I had a larger numbers of shares that I would like to sell I’d wait for a day like this too (positive news and more buying interest).
That’s okay. Weak hands selling. It’s a great buying opportunity for those that recognize the value. Can’t believe being able to add at these prices after this positive update.
Once sellers are finished this’ll go up fast imo.
I’ve put my money where my mouth is today and added.
Feeling confident about LSAI’s future.
This company is still very much alive, having great prospects. Cash reserve per share 0.3p. The share price should be a lot higher than 0.4-0.5p.
I really liked the update. They’ve done very well considering the circumstances. Increased revenues, healthy cash position, possibly Covid-19 related contracts and new US Verify contracts, costs savings (even lowering managements renumeration), higher revenues H2, positive about our future.
Well done!
See nothing, hear nothing. Are we sure this company even exists?
@aerial Do you expect an update any day now? If you do I'll add coming friday. No way an update would be released on a friday. Monday perhaps?
Agreed. We could do with a good RNS. Surely there must be something positive that could be told?
What do you mean with "day high paid"? I've got no real time stock quote. Has someone paid the day high? It wasn't me BTW (or I would have known :) )
I've added some that I will definitely sell @0.60p :)
Frustrating isn’t it? LOL.
Well, I’ll know what to do next time: buy @0.40-0.45 and get the hell out @0.65!
Hm, there has been volume, but no pumped up price.
If the recent interest in the share had any reality, this should be our bottom price.
If not, well traders will continue dumping, meanwhile looking for the next share they won’t sell any of as long as it is not quoting 4x current price.
Hahahaha! It’s funny.