Member Info for Hexam

I agree that no buying pressure means no sp rise. If we were on NASDAQ that would give us more of a level playing field with MARA and RIOT as it would give us greater access to a market where potential investors ‘get Crypto’ more.

In the meantime to attract more ‘traditional’ investors here it just needs more of what tends to appeal to them: profit growth, dividends and stability.

The profit growth is the easy part - that comes in spades this year. Dividends can also then follow but that’s a decision for ARB as to the best use of those profits. The trickiest one is stability as many investors I suspect will still be put off if BTC remains volatile - though even this has been more stable lately.

So I think all the signs for sp over the next 6-12 months are hugely encouraging but if anybody is staring at the sp every day getting annoyed that it isn’t going up then maybe investing in Crypto directly is a better idea for them.

Oops - sorry, didn’t think 1st message posted.

Huge profits? We only reported about £1m!

Huge profit? It was around £1m. £25m will look a lot different.

Half-year results where the huge potential starts to be translated into substantial profits (over £25m) and NASDAQ. As both will bring us to the attention of a wider pool of potential investors.

Yes Gilen, they are market makers but though they can try to influence the market the ‘maker’ bit means they have to ‘make’ the market liquid which means setting a price that attracts buyers and sellers. Too high no buyers, too low no sellers and either way they don’t earn their spread.

The main reason I don’t like the constant blame being put on mms is that it can discourage investment every bit as much as a de-ramper - who wants to bet on a race if they think it is fixed?

And good luck with the court case 600. Sorry, didn't realise that this was what the September reference was about.

Kozzi, September is when the interim results are released and I'll be amazed if they don't change things with the big uplift in profits that they should show. Hopefully things will move up before then anyway, but either way I think only a little patience is needed - not lots - IMO. GLA

Kozzi, I don't deny there is the odd tree shake and other dubious practices and mms can certainly help create panic. But mms would have to have the combined magic of Merlin, Gandalf and Dumbledore to keep a share price down for so long. They are not that powerful. After all whilst some will panic on seeing a falling share price, others (the more astute) will see an opportunity. To me mms are just a convenient scapegoat for those disappointed in a share's performance.

At the end of the day it is a market place so eventually the 'right' price will emerge in the end. In my view it is just investor apathy/ignorance keeping it where it is but this should change once the reported financials take-off - but it is just my view and if others want to keep blaming mms for everything (and some do on every BB) then that's their prerogative.

Whilst I disagree completely that mms are the main reason why the sp is where it is (I think it is more just investors being unaware of ARB, or at least its potential, as ultimately it is investor buys and sells that determine where the price goes) I do agree that a higher SP is inevitable once the fundamentals become much more obvious. At the latest this should be when the half year results are revealed which barring big BTC falls should show £25m+ in earnings - a huge leap from the year end-end figure.

NASDAQ would help too of course.

I've not assumed a P/E ratio as I have only estimated the gross profit. Assuming net profit of say £80m would give a PE ratio of just 10 if the SP was still only £2. This would be extremely low for this type of company at its stage of development which is why I think £2 would then be undervalued (a lot).

I was just trying to keep it simple and stick with what is already there. Happy days indeed :-)

...but they'll soon hear of Argo if it does clear £100m profit.

Maybe the SP will go up if potential investors finally start doing the maths.

For example if BTC hits $85,000 at the end of the year the profits before tax look to be heading for £100m barring any nasty surprises. (£85-£90m mining revenues + £35-£40m Crypto appreciation less £10-£15m mining costs less £10-£15m other costs.)

If BTC stays around $55,000 the figure is still around £60m!

I'm sounding dangerously like a ramper but these are the numbers and they're easy enough to check (assuming these BTC levels, current mining amounts and margins and no other unknown 'items/events').

£2 a share and mcap of £0.75bn would definitely seem undervalued then!

This business seems too good to be true - where's the catch (apart from the risks around BTC itself)?

I think it's fair question @johnpohn and it's a shame some of the responses have been less than welcoming - though can be excused a bit given some of the de-ramping we've had to put up with.

I agree that the silence may not be regulatory (as you say it is easy to find examples though hard to know if they are comparable).

I disagree though that it is very important to everyone on this board. Like @Argobull I am not worried about the silence. First, for the same reason i.e. that given PW's past openness their must be some good reason for keeping quiet whatever it is.

Secondly after spending some time going through the accounts issued today, and those for the previous year, I am very confident of the soundness of the business and the prospects for profits this year that (barring big falls in BTC) will dwarf the figures seen so far and make potential investors aware of us NASDAQ or not.

So yes, any NASDAQ news would be great but if we do lose a bit by being slower off the mark than some others I am convinced any disadvantage will be short-lived.

They did have 183 BTC but was valued at £3.9m. They also had other coins though (ETH, DOT etc.) bringing the total up to £4.6m. The result is the same though - roughly £10m increase so far - which is part of the reason why I think the half-year results will be so impressive (£25m-£30m PBT by my reckoning). Good times!

The results look better the closer you look. The gross profit reported was £1.4m for 2020. Unless I've missed something or miscalculated the half-year gross profit will be an impressive £25-£30m assuming BTC doesn't fall significantly by the end of June. Most of this is already in the bag IF BTC doesn't fall and is driven by the high mining volumes and margins already achieved in 2021 and the rapid rise in BTC in the first few months (to my surprise these rises do hit the P/L - £2m was the figure for 2020).

If I'm close to the right numbers (DYOR) then this should get the market's attention and perhaps they're even do the same sums already?!

Btw I didn't see the results on the website when I looked yesterday so I think it is appropriate (and probably required) that they issued another RNS today to let people know that they were now there as it is obviously very important information. So nothing in my mind to worry about.

Agree flowerpot though it is not the case that they hold onto all BTC. If you add up all the coins mined (and bought) and deduct for the cost of mining them, they have a lot less than if they kept them all. I can't remember the exact wording but I think the gist of their strategy was to HODL some/most of what they can (depending on circumstances) as an additional way of generating revenue (which they can only do by eventually selling/using them).

This appears very sensible with BTC expected to continue rising but it is not the same as holding everything and forever, which as you say would be rather pointless.

ok - I'll compromise on delusional :-)

I wouldn't call them idiots for continually blaming mms - just the worst sort of gambler i.e. one that every time their horse loses claims the race was fixed.

The SP just reflects the average view of all investors of what a stock is worth - not just the views of those invested which is naturally always higher! MMs are like King Canute - they can't hold back the tide of investors if they want to buy a stock - the SP will go up if that is the case. (And btw Canute never thought he could either.)