Member Info for Hedgehog100

"About the company

MYCELX Technologies Corporation is a clean water technology company. The Company provides water treatment solutions to the oil and gas, power, marine and heavy manufacturing sectors. Its geographical segments are the Middle East and the United States (U.S.). The Company's patented technology, MYCELX Polymer, uses molecular cohesion to remove oil from water, reaching critically low levels for discharge or reuse. The polymer permanently removes oil from water upon contact preventing the reentry of oil into the water stream. The Company's MYCELX Technologies include MYCELX REGEN, MYCELX Polisher, MYCELX Coalescer, PFAS Remediation System, Air Filtration, Oil Spill Solutions, MERSEP Elements, Testing and Validation Lab, and Engineered Process System. Its applications include upstream oil and gas, downstream oil and gas, environmental remediation, oily mist air filtration, and industrial water."

"Peer analysis

Company Revenue (TTM) Net income (TTM) Market cap Employees ..."

https://markets.ft.com/data/equities/tearsheet/profile?s=MYX:LSE

The above peer analysis lists 12 companies, including MYX.
(It incorrectly shows MYX's market cap. as £11.25M., when it is actually £9.08M. at 39.5p.)

Only two companies in the list are shown as having a lower market cap. than MYX, and neither of these have annual revenues of more than £0.5M.

Some other examples from the list, that indicate how undervalued MYX is:-

Haydale Graphene Industries PLC:- Revenue 2.82m, Net Income -3.93m, Market Cap. 13.28m
Libertine Holdings PLC:- Revenue 824.00k, Net Income -3.22m, Market Cap. 29.24m
EQTEC PLC:- Revenue 8.19m, Net Income -4.20m, Market Cap. 35.94m

Weak sterling has already seen a recent succession of North American predators snapping up British companies.

So I would fully expect this trend to continue.

And while it's the big companies that tend to attract the headlines, small companies of course get acquired too.

And the premiums paid can be even bigger than with big companies.

"Micro Focus agrees Open Text takeover at 99% premium in new blow to UK tech space

26 August 2022, 11:58

- UK’s 6th largest tech company agrees $6 billion Canadian takeover

- Shareholders call time on five years of share price declines

- Latest in lengthening list of UK tech exits despite Government pledges

Enterprise software firm Micro Focus (MCRO) has agreed to be taken over by Canadian company Open Text (OTEX:NASDAQ) in a $6 billion cash deal.

Ontario-based company is offering 532p per Micro Focus share, a 99% premium to Thursday’s closing price.

After five years of share price declines, Micro Focus shareholders can be forgiven for snapping Open Text’s hand off. The 2017 merger with HP Enterprise’s software arm was a massive error in judgement and has cost shareholders billions in lost equity value, and the company nearly 50 years of independence.

As the UK’s sixth largest software company, losing Micro Focus is another blow to the UK’s shrinking large cap tech space.

UPSURGE IN UK TECH EXITS

This week saw speculation emerge that engineering software firm Aveva (AVV) will be swallowed by its 59% majority owner, Schneider Electric (SU:EPA). With cybersecurity peers Darktrace (DARK) and Avast (AVST) respectively mulling and closing deals with Thoma Bravo and NortonLifeLock (NLOK:NASDAQ), it means if all of these deals close, the UK stock market will lose its second, third, and sixth biggest software stocks by market value.

£1.2 billion healthcare tech firm Emis (EMIS) is also in negotiations after receiving an offer from UnitedHealth (UNH:NYSE).

So much for the Government’s empty promises of unleashing London’s equity markets to attract big tech companies. Some investors are still reeling from the short-sightedness that saw Cambridge’s microchip designs champion Arm Holdings flogged off to foreign owners. ..."

https://www.sharesmagazine.co.uk/news/shares/micro-focus-agrees-open-text-takeover-at-99-premium-in-new-blow-to-uk-tech-space

Hedgehog100 Posts: 2,321 Price: 34.00 Strong Buy
Strengthening US Dollar Great News For NWT 10 Sep '22
" ... The strengthening US dollar, compared to sterling, is great news for NWT, in three ways:-
1. Becomes cheaper to sell to America.
2. Value of NWT's US revenues is increased per dollar.
3. NWT becomes a cheaper takeover target for a US predator. ..."

And this great benefit to NWT is increasing, and looks set to continue to do so for quite some time:-

"Larry Summers Warns Pound May Tumble Below $1 on ‘Naive’ UK Policies

By Chris Anstey
23 September 2022 at 14:13 BST Updated on 23 September 2022 at 16:05 BST

Former Treasury Secretary Lawrence Summers blasted the economic policies being adopted by newly installed UK Prime Minister Liz Truss, saying they’re creating the circumstances for the pound to sink past parity with the US dollar.

“It makes me very sorry to say, but I think the UK is behaving a bit like an emerging market turning itself into a submerging market,” Summers told Bloomberg Television’s “Wall Street Week” with David Westin. “Between Brexit, how far the Bank of England got behind the curve and now these fiscal policies, I think Britain will be remembered for having pursuing the worst macroeconomic policies of any major country in a long time.”

Truss’s government has set out the most radical package of tax cuts for the UK since 1972, reducing levies both on worker pay and companies in an effort to boost the long-term potential of the economy. Economists are concerned the package is unaffordable and will trigger a currency crisis over concerns about rising debt.

The pound on Friday slumped to its weakest since 1985, trading at $1.0908 as of 3:52 p.m. in London.

“It would not surprise me if the pound eventually gets below a dollar, if the current path is maintained,” said Summers, a Harvard University professor and paid contributor to Bloomberg Television. “This is simply not a moment for the kind of naïve, wishful thinking, supply-side economics that is being pursued in Britain.”

The former Treasury chief also flagged dangers with a surging dollar, which is adding to inflationary pressures for countries around the world and increasing pressure on overseas borrowers that have issued debt in the US currency. He also indicated that dollar appreciation -- fuelled by the Federal Reserve’s shift to a more aggressive path of interest-rate hikes -- may continue.

Dollar Pain

“This is going to be an issue that is going to be with us for some time,” Summers said. “Countries are going to have to be adjusting to a very strong US dollar,” and it will complicate macroeconomic management in may economies, he said. ..."

https://www.bloomberg.com/news/articles/2022-09-23/summers-warns-pound-may-tumble-past-1-on-naive-uk-policies

The great nature of yesterday's news is fairly self-explanatory.

If TMOR hadn't been suspended pre-opening yesterday, it would probably be top riser for the weekend.

That should still be to come though, if the RTO proceeds.

And quite apart from the initial premium for TMOR, Megasteel itself looks like a potentially cracking growth share, that could potentially multibag in the longer term from its listing price.

Thanks and well done to TMOR's management for arranging such a cracking potential deal.

I make the premium 150% though, not 214%: i.e. a premium of 1.35p over 0.9p, to give a RTO price of 2.25p.
Whereas the RTO price of 2.25p is 250% of 0.9p.

Wolf,

These are at least some of the warrants concerned, set out in the 1st. March RNS below.

The vast majority are 'investor warrants', exercisable at a price of 1.5/warrant: if all the investor warrants are exercised, this would bring in £3.75M. cash for the company.
So presumably there are new warrants too as part of the acquisition?

"Tuesday 01 March, 2022
More Acquisitions
Intention to Float on the London Stock Exchange
RNS Number : 1029D
More Acquisitions PLC
01 March 2022

... Investor Warrant Instrument

The Company issued, conditional on Admission, 250,000,000 warrants equally to all investors who participated in the Placing ("Investor Warrants").

The Investor Warrants give the right to subscribe for one Ordinary Share at £0.015 per Ordinary Share, a 50% premium to the Issue Price. All Investor Warrants may be exercised for a period of 5 years from the date of Admission. The Investor Warrants have an accelerator clause which applies if the Company announces and signs a sale and purchase agreement within 60 months of Admission. The Company will serve notice on the Investor Warrant holders to exercise their Investor Warrants in this event. When the Company serves notice, any Investor Warrants remaining unexercised after 7 calendar days following the notification of the notice will be cancelled.

Broker Warrant Instrument

The Company issued, conditional on Admission, 6,250,005 warrants (equating to 5 per cent. of the Enlarged Share Capital) to Peterhouse Capital ("Broker Warrants").

The Broker Warrants are exercisable at the Issue Price, £0.01 per Ordinary Share, the Placing price. All Broker Warrants may be exercised for a period of 5 years from the date of Admission, and conditional on Admission. The Broker Warrants are non-transferable. The Broker Warrants have an accelerator clause which applies if the Company announces and signs a sale and purchase agreement within 60 months of Admission. The Company will serve notice on the Broker Warrant holders to exercise their Broker Warrants in this event. When the Company serves notice, any Broker Warrants remaining unexercised after 7 calendar days following the notification of the notice will be cancelled. ..."

https://www.investegate.co.uk/more-acquisitions/rns/intention-to-float-on-the-london-st

"Bosses of Bam, CBRE, Arup and British Land among signatories of letter urging prime minister to deliver on climate promises

Sarah George
Published 21st September 2022

Amazon, Coca-Cola Europacific Partners and Sky are among the 116 businesses and financial institutions urging new Prime Minister Liz Truss to couple plans for dealing with the cost-of-living crisis with plans for climate action. ...

Now, a total of 116 major businesses and financial institutions have written an open letter to Truss, urging her not to sideline the UK’s net-zero transition in favour of short-term economic growth. The letter argues the case for delivering an economic recovery for the UK grounded in low-carbon technologies and nature conservation and restoration.

The letter has been coordinated by the Corporate Leaders Group UK (CLG UK) at the University of Cambridge. Signatories collectively represent £1.8trn of market capitalisation and more than 425,000 members of staff. ...

Summarising the rationale for sending the letter, CLG UK’s director Eliot Whittington said: “The UK is facing severe economic headwinds. The best and only sensible way of facing up to them has to include investing in British renewable energy and helping homes and businesses be more energy efficient. Maintaining and strengthening our focus on net zero and nature protection can help us move beyond the rising costs of fossil fuels and deliver a better economy with more energy and food security, more jobs and greater social equality.”

A report from the CLG this summer concluded that addressing the UK’s rising energy prices in a “climate-friendly” way would not only cut bills for households and businesses now, but reduce the likelihood of future price spikes and be beneficial to the economy in the short and long term. Approaches locking in carbon would deliver lower benefits in the medium and long-term, that report found.

Whittington added: “What’s more, the Conservative Party has rightly enshrined net zero into law and in so doing reaffirmed UK leadership on climate action, further demonstrated at last year’s COP26 summit. UK business and finance leaders urgently want to see more leadership from the government on this agenda, with clear, well-resourced and defined plans to get us on track for a more stable climate and a stronger economy.”"

https://www.edie.net/deliver-robust-net-zero-plans-in-response-to-rising-costs-liz-truss-urged-by-more-than-100-businesses/

"Bosses of Bam, CBRE, Arup and British Land among signatories of letter urging prime minister to deliver on climate promises

Sarah George
Published 21st September 2022

Amazon, Coca-Cola Europacific Partners and Sky are among the 116 businesses and financial institutions urging new Prime Minister Liz Truss to couple plans for dealing with the cost-of-living crisis with plans for climate action. ...

Now, a total of 116 major businesses and financial institutions have written an open letter to Truss, urging her not to sideline the UK’s net-zero transition in favour of short-term economic growth. The letter argues the case for delivering an economic recovery for the UK grounded in low-carbon technologies and nature conservation and restoration.

The letter has been coordinated by the Corporate Leaders Group UK (CLG UK) at the University of Cambridge. Signatories collectively represent £1.8trn of market capitalisation and more than 425,000 members of staff. ...

Summarising the rationale for sending the letter, CLG UK’s director Eliot Whittington said: “The UK is facing severe economic headwinds. The best and only sensible way of facing up to them has to include investing in British renewable energy and helping homes and businesses be more energy efficient. Maintaining and strengthening our focus on net zero and nature protection can help us move beyond the rising costs of fossil fuels and deliver a better economy with more energy and food security, more jobs and greater social equality.”

A report from the CLG this summer concluded that addressing the UK’s rising energy prices in a “climate-friendly” way would not only cut bills for households and businesses now, but reduce the likelihood of future price spikes and be beneficial to the economy in the short and long term. Approaches locking in carbon would deliver lower benefits in the medium and long-term, that report found.

Whittington added: “What’s more, the Conservative Party has rightly enshrined net zero into law and in so doing reaffirmed UK leadership on climate action, further demonstrated at last year’s COP26 summit. UK business and finance leaders urgently want to see more leadership from the government on this agenda, with clear, well-resourced and defined plans to get us on track for a more stable climate and a stronger economy.”"

https://www.edie.net/deliver-robust-net-zero-plans-in-response-to-rising-costs-liz-truss-urged-by-more-than-100-businesses/

"'Demand has never been higher': How the energy crisis is proving an 'accelerant' for renewable energy

James Murray
02 August 2022 • 7 min read

Latest data from BloombergNEF reveals 11 per cent increase in global renewable energy financing, as investment reaches record levels - is a tipping point being reached?

The global economic outlook may be worryingly bleak, but there is still little evidence that inflation and dwindling investor confidence are impacting the booming renewables market as investment continued..."

https://www.businessgreen.com/news-analysis/4054207/demand-energy-crisis-proving-accelerant-renewable-energy

"'Demand has never been higher': How the energy crisis is proving an 'accelerant' for renewable energy

James Murray
02 August 2022 • 7 min read

Latest data from BloombergNEF reveals 11 per cent increase in global renewable energy financing, as investment reaches record levels - is a tipping point being reached?

The global economic outlook may be worryingly bleak, but there is still little evidence that inflation and dwindling investor confidence are impacting the booming renewables market as investment continued..."

https://www.businessgreen.com/news-analysis/4054207/demand-energy-crisis-proving-accelerant-renewable-energy

The cash shell ARA released its interim results a couple of weeks ago, and in their interim results statement, the company noted that the current energy crisis was boosting renewable energy growth:-

7th Sep 2022 7:00 am RNS Half-year Results

"... John Croft, the Chairman of Aura commented: ...

"Since listing, Aura has begun to explore a range of potential targets in the UK and overseas which could offer the opportunity for significant growth in this exciting and fast-moving market sector. We have also been in discussions with the Board's extensive professional and business networks to raise the Company's profile and highlight its intentions and objective to this large potential introducer base.

"The current worldwide economic and political uncertainty caused by supply chain issues, inflation, interest rate rises, hostilities in Europe and further afield, the lingering impact of Covid and climate change, have had a dampening impact on capital market activity and fund raisings during 2022.

"Despite these uncertainties, the growth in renewable capacity continues, with solar capacity leading the way. Installed renewable energy capacity around the world increased by 6% in 2021, despite post-Covid delays and rising raw material costs of 15%-25%. The International Energy Agency (IEA) expects 2022 to create further growth of 8% in installed capacity, not least as countries that have relied upon oil and gas from Russia are now accelerating the expansion in renewable energy capacity in response to the war in Ukraine.

"As a result of these market forces, we are more confident than ever that the renewable energy sector will offer excellent opportunities for acquisitive and organic growth for the foreseeable future, and we are committed to ensuring that the Company and its stakeholders have the chance to share in these opportunities." ..."

https://www.lse.co.uk/rns/ARA/half-year-results-sjcwoorehyzonr2.html

This bodes well for TMOR's stated area of focus.

From TMOR's website:-

"Our focus will be investing in a business or businesses which are developing and/or supporting the energy transition, which is the global energy sector’s shift from fossil-based systems of energy to renewable sources, such as wind and solar and lithium-ion batteries."
http://www.moreacquisitions.co.uk/

In their recent interim results statement, a couple of weeks ago, ARA noted that the current energy crisis was boosting renewable energy growth:-

7th Sep 2022 7:00 am RNS Half-year Results

"Interim Results for the period ended 30 June 2022

7 September 2022 - Aura Renewable Acquisitions plc, a UK-based company, whose objective is to invest in the global renewable energy sector supply chain and thereby build shareholder value, announces its maiden interim results for the period from the date of incorporation on 4 November 2021 to 30 June 2022. ...

"John Croft, the Chairman of Aura commented:

"During this initial financial period the Company joined the Standard Segment of the Main Market of the London Stock Exchange on 8th April 2022 and raised gross proceeds of £1,000,000 from a placing and subscription.

"Since listing, Aura has begun to explore a range of potential targets in the UK and overseas which could offer the opportunity for significant growth in this exciting and fast-moving market sector. We have also been in discussions with the Board's extensive professional and business networks to raise the Company's profile and highlight its intentions and objective to this large potential introducer base.

"The current worldwide economic and political uncertainty caused by supply chain issues, inflation, interest rate rises, hostilities in Europe and further afield, the lingering impact of Covid and climate change, have had a dampening impact on capital market activity and fund raisings during 2022.

"Despite these uncertainties, the growth in renewable capacity continues, with solar capacity leading the way. Installed renewable energy capacity around the world increased by 6% in 2021, despite post-Covid delays and rising raw material costs of 15%-25%. The International Energy Agency (IEA) expects 2022 to create further growth of 8% in installed capacity, not least as countries that have relied upon oil and gas from Russia are now accelerating the expansion in renewable energy capacity in response to the war in Ukraine.

"As a result of these market forces, we are more confident than ever that the renewable energy sector will offer excellent opportunities for acquisitive and organic growth for the foreseeable future, and we are committed to ensuring that the Company and its stakeholders have the chance to share in these opportunities." ..."

https://www.lse.co.uk/rns/ARA/half-year-results-sjcwoorehyzonr2.html

This further highlights ARA's attractions.

Welcome (home) James.

Looks like you're a Serica Energy (SQZ) shareholder too, so it's interesting that you've been attracted here.

Serica Energy (SQZ) is a c. 7-year hundred-bagger (2015-2022), after a prior s.p. collapse (to a 2015 low of just below 3p). (The company operate in the UK North Sea.)

Of course, most mid-tier energy companies don't start out that size: they tend to start off small, and grow.

And incidentally SQZ has risen about 50% since the start of June, to its current s.p of 367.5p.

More potentially huge revenues and profits that could be flowing into ZEN.

And ZEN's success in winning Tilapia II bodes well for them winning this also.

Especially in view of Benin's historic oil ties to Norway:-

22nd Sep 2022 9:05 am RNS Offer for Sèmè Field in Benin
"... About Benin's Oil Industry
In recent years, there has been an attempt to revive domestic oil production in Benin following the previous involvement of various Western oil companies between 1984-1998, including the Norwegian Saga Petroleum. ...
Zenith Energy Ltd. is a revenue generating, independent energy company with production, exploration and development assets in Tunisia, Italy and the Republic of the Congo, including electricity generation in Italy. The Company is listed on the London Stock Exchange Main Market (LSE: ZEN) and the Euronext Growth of the Oslo Stock Exchange (OSE: ZENA). ..."
https://www.lse.co.uk/rns/ZEN/offer-for-s232m232-field-in-benin-9ipqkv85a2cynli.html

Italy + Tunisia + Republic of the Congo + Benin looks like it would be more than enough to potentially take ZEN to mid-tier O&G company.

There's a very clear trend here in improved credit rating from BCRA:-

25.8 2020: B- with Stable Outlook
30.8.2021: B- with Positive Outlook
19.9.2022: B with Positive Outlook

At this rate of improvement, an "A" rating should be possible in the medium term, which would be consistent with ZEN's mid-tier (i.e. market cap. of £100s. of millions) ambitions.

And the RAEX credit rating agency should be upgrading its ZEN credit rating soon as well, which would be another nice endorsement and benefit.

Some more material from the new BCRA ZEN report:-

"The company is currently negotiating the terms of
Tilapia II with the Ministry of Hydrocarbons of the
Republic of the Congo. Until the license is finally
granted, the group is not allowed to start production
and currently has no revenues from this asset.

Zenith Congo is expected to hold a 60% interest in
the new Congo Licence II once issued, with the
remaining 40% held by SNPC the National Oil
Company. AAOG Congo holds outstanding
receivables from SNPC totaling USD 5.7 mln, which
may cover future investment requirements."

https://bcra.eu/files/rating_zenith_sep_2022_en.pdf

Nice to know that ZEN is currently negotiating the terms of Tilapia II, rather than just waiting.

In view of the signs we've received that the licence could be awarded imminently, it sounds to me that they may just be 'dotting the is & crossing the ts', and that the licence award is a done deal.

And considering that Tilapia could potentially generate US$1 billion a year in oil revenues, that is a very nice indication to have.

Well done to the company ... and to Callit, for 'calling it' well:-

callit Posts: 1,723 Price: 1.025 No Opinion
RE: 5th Sep 2022 4:00 pm RNS Rescheduling of Investor Call to 28.09.20226 Sep '22
"Must surely be an update of our credit rating soon. ..."

Nick,

Where did you get the 23rd. September date from?

Paul Campbell-White joined Newmark as Chief Financial Officer on 6th. September last year, four days before the final results were announced, so the imminent finals results will be his first that he's really prepared.

So it shouldn't be a surprise that they're being issued later than last year.

NWT did briefly hit a closing low of 25p in early April of this year, so the current s.p. is a joint all-time closing low.

But due to a weakening of sterling since then, NWT's dollar equivalent s.p. is even lower than then.

Friday's NWT volume of just over 100,000 shares traded (over 1% of the shares in issues) was actually the highest daily volume for over two years.

But it looks like the selling has probably now cleared: an odd-sized large sale (as on Friday) often marks the last of a holder's stocks.

Is there a better value stock on the London Stock Exchange than NWT?

Certainly not that I'm aware of.

Fair value would probably be at least double the current share price of 25p ... not accounting for further potential upside as newsflow progresses.

Yes Raincat.

Fantastic company progress, but only just starting to be reflected in the s.p.

In my experience, that is almost invariably a buy opportunity.

callit 9 Aug '22 Price: 0.828
"The magical '1 trade' says it all. :)"

Well Callit, that trade was a prelude to some big news, and a big rise.

And now there's been another one today, in Norway:-
TIME PRICE SHARES TYPE
16:25:15 0.1178 1 Auction
https://live.euronext.com/en/product/equities/CA98936C1068-MERK

"Journal of Banking & Finance
Volume 75, February 2017, Pages 109-117
1-share orders and trades
Ryan L.Davis a, Brian S.Roseman b, Bonnie F.Van Ness c, RobertVan Ness c

Abstract
1-share trades are the most common odd lot trade size, accounting for 9.62% of all odd lot transactions and 3.65% of all trades on NASDAQ in 2012. While 50.41% of 1-share trades result from broken orders, 34.89% of 1-share trades are intentional. We provide substantial evidence that traders use 1-share trades to “ping” for hidden liquidity. In particular, our results indicate that 1-share trades are disproportionately aggressive and also execute against hidden liquidity more than any other odd lot trade size. We also find a relative increase in trading immediately following a 1-share trade. Our results are in line with Clark-Joseph (2014), who suggests that traders may use small, unprofitable trades to detect information from other traders. Specifically, 1-share trades represent the minimum cash outlay necessary to trade, while simultaneously producing the smallest possible effects on a market maker's inventory, and in turn, a security's price."

https://www.sciencedirect.com/science/article/abs/pii/S0378426616302035

Price Change % Change Share Price Shares Traded Last Trade
-6.00 -19.4% 25.00 100,206 12:47:15

A rather strange fall in NWT's s.p. yesterday, to end the week, to its previous all-time closing low of 25p (previously reached this April).

Looks like a 'distressed seller' has dumped their stock at/near an all-time low.

There's been quite a lot of this 'stupid selling' this year, and the likelihood is that the seller will be even more 'distressed' soon, when NWT rebounds.

At a market cap. of just £2.34M., and expected revenues for the year ended 30.4.22 of c. £20M., this looks to be quite extraordinary value.

The directors are probably gutted that they can't take advantage, being in the close period ahead of the final results.

That's where retail investors have the advantage.

The seller can only sell once, and one the cheap share are hoovered up (a process which started yesterday afternoon), they're gone.

It's been well flagged up that NWT has made a loss last year, but the company should move back into profit as we emerge from the pandemic, and any sign of that and a rapid return to 60p+ looks well in order.

There's also the 'blue sky' possibility of a takeover of NWT ... and such takeovers are sometimes announced in tandem with a company's results.

"Zenith Energy’s aim is to become a mid-tier, Africa focussed E&P company"
https://www.zenithenergy.ca/about/strategy/

I wonder if ZEN has a target timescale for fulfilling this aim?

Typically, such strategic aims have a long term timescale for achievement, but the progress ZEN is making it could potentially be medium term in this case.