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Thoughts on how share price might move over the next couple of weeks? IMO, I think it will remain relatively stable at this price and we might then see a drop to high 60s / low 70s at the end of the month when it goes ex-divi and a modest (albeit expected) Q1 profit is announced based on a quarter with RH at $4.1k. However, if this happens, there could be a very attractive entry point .. particularly if RH does not revert downwards..
The increase in the price of Rhodium
This goes ex divi on 26 October which is around when we can expect Q1 results (31 October last year)....
Rhodium is up c10% over the last two days though from $4100 to $4550.
Bangrak, is this not exactly the point though? SLP is a play on PGM and no one can say with certainty where PGM prices will be in the future. You have your view of PGM prices and others have theirs, as does each broker. We will all be able to find PGM forecasts to support our view of whether or not SLP is a good investment.
Your posts are helpful to provide a balanced view but only time will prove which view is correct!
Indeed Yanis. Everyone can see there is value here but lets not forget that they're going to run out of cash in 4 weeks max. This is bargain bucket stuff and anything above current SP has to be a win for LTH who are otherwise faced with the very possible scenario of admin
Long term followers (DGU, D-G, Yanis, Wyn etc.): if there is something of substance here, what do you think the deal value might be? After everything that has happened, 2-3p (£5-8m market cap) would feel like a get out of jail free card to be grateful for (for those who have continued to hold).
“Alan, Alan, Alan” - https://youtu.be/F0BfcdPKw8E
Reveal yourself now Alan.
Would love to think he’s among us on this board haha
We’re due confirmation of interim results this month if I’m not mistaken.
I’d expect an update on outlook and also the FSP as part of those interim results
Based on the 21 July update, the due diligence work being undertaken by the "small number" of interest parties should have completed (based on my experience at least). I can therefore only assume that their interest has gone cold (but not to say that a proposed deal won't come back to life, as sometimes happens.
Re a consortium of investors D-G, it's an interesting consideration but I'd be very surprised. Eve is pocket change for the big companies so I don't see what value there would be in entering into a JV with another (or multiple other) parties. I recall a while back I made a comment about DFSs share buy-back program and the fact that they could instead buy Eve should they think it a better use of capital. Clearly the mood music has changed in the industry since then but that's not to say that DFS could not still buy Eve very easily (either in cash or DFS shares) if they really wanted to. IMO
Just viewed both the French and UK websites. The French site has bedding and bed frames that were but no longer are in stock on the UK website (and all bedding is on sale with limited sizes). This suggests to me that Eve are selling down existing stock and streamlining their product line (which I think others may have previously referenced on this board).
The UK products are actually very limited these days.
Thoughts?
Agree Vernet. I was looking recently at the H1 trading update and it stood out to me that Eve referred to management "hunkering down" to "maximize" the cash runway. Sounds to me like running out of cash is a question of when not if.
I think I can answer because DGU has stated (also multiple times) a target of 10p per share or £27.5m market cap. Go figure.
DGU, I usually just disregard your posts as they're tiresome. However, you've now referenced, on multiple occasions, CC and TP's remuneration and your objections towards it. Do you even know how much they're paid?
CC's single figure remuneration was £166k and £102k in 2021 and 2020 respectively. TP received £146k, £156k and £67k in 2021, 2020 and 2019 respetively. This excludes stock options but, frankly, they're as worthless as our own equity right now.
Do you really think the above is excessive? They're exec management. If Eve paid any less they'd be unable to recruit.
Sorry what “profit” are they referring to one? They’ve not made a profit since the campaign started so it’s just wrong rather than overegging it! Unless I’m missing something ?
Wyn, thank you for posting, range of views is important.
I personally don't think this changes much. I was always of the view that Eve had a finite cash runway and it was and still is "do or die" in terms of a deal. Yes this maybe suggests cash burn is higher than hoped but no one should be shocked.
This drop is just a retrace towards cash at the bank plus a premium to reflect significant upside if a deal gets done.
Hi DGU. I know for a fact that I have nothing new or factual to say about Eve, which is also why I have not posted for a while!
Largely just a waiting game as I see it.
I think you're right. Both DN and FJ Labs invested in 2016 per the article here
https://www.finsmes.com/2016/10/eve-sleep-secures-18-3m-in-series-b-funding.html
Let's not get carried away here. We have an investor who has punted £40k as part of their self-professed "spray and pray" investment strategy (copied by the same link posted by D-G).
Encouraging? Perhaps. But we can all see the potential for a transaction at a multiple of today's price, as much as we can see the risk of loosing everything. These investors see the exact same - they just have the money to risk.
"Portfolio strategy:
Most studies suggest that angels with fewer than 10 investments lose money, while those with more than 10 investments make money. Moreover, the more investments angels make, the higher their IRR as it increases their probability of a huge hit. You don’t want to invest in everything, but informed “spray and pray” seems to work, especially given the huge amount of luck involved in the success of Internet startups. Time and time again startups in my portfolio that I thought were dead came back and did extraordinarily well, while former high flyers crashed and burned!"
Talk is cheap though, and all competitors could talk up the same opportunity in the same way.
What I am pondering is how Eve are in a better positron or further down that journey. And IMO they are not.
Yes of course, they’ve said as much regarding the intended use of funding.
But how are they in a better position to do it than anyone else? Because other than the well slept club - which is a good point - they don’t do anything different to competitors.
I take your points. Just interested in other views because I struggle to see it