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knee jerk as usual with this company. Sales far exceeding buys by around 1.6% of the shareholding in a short time, which always has such a big impact. Why sell when the company appears to be doing so well - look at the latest trading statement on 29 Sept? The company has announced so much growth and progress since Mr Bell has been involved, including a predicted return to profit. And at last Ult have at last also taken out the 'old Management' (Malone), so now they can progress with an agressive strategy of growth. It was always likely there would be a MBO, particualarly with the Screenetics MD taking a large portion of shares in payment initially and as part of any profits. If they are now taking over the company they still have to negotiate a reasonable price with existing shareholders.
I believe that once the company start to show profits then this will signal people like investment houses and small fund managers to interogate Ultrasis. they should see then the potential and the new management infrastructure and approach and start to invest in Ultrasis. This should then see a sustained growth in terms of the company having financial support for growth and reflected in the increased share price. However, we must wait yet again for those figures to be produced.
I mentioned a while ago that it seems when companies offer a trading update the rise is often short lived. I suspect that we will only see any significant upward movement when there is some profit on the books. This particularly needs to be displayed with increasing headcount and associated costs that incur. We all know it's coming so just the usual waiting game.
The board could potentially make an announcement, but often this has no significant impact. A good example of this is POD, which over the past year or so has followed a similar price drop to ULT. They recently announced "Group is performing operationally in accordance with its strategic plan and budget ". The price initially rose 20% from a 10 year low (something like 32p to 42p and soon dropped again to 36p and has been fluctuating within a 10% range). Of course should there be actual news then the company are at liberty to report this. Who knows, maybe some positive news may come through before 31 July?
I suspect due to the constraints with forthcoming payments which are due be paid to screenetics, the Board are unable to influence the share price. The payments are primarily to be paid in Ultrasis Shares. See below: Subject to approval of the Resolutions, the Company will acquire Screenetics for an initial consideration of approximately £570,600 in cash and the issue of Ordinary Shares to the value of approximately £380,400, subject to adjustment to provide that Screenetics is acquired on a net cash/net debt basis, with further consideration of up to £3,849,000 dependent on Screenetics’ performance in the period following the Acquisition, payable as follows: following completion, and subject to adjustment, up or down, approximately £570,600 in cash and approximately £380,400 in new Ultrasis Shares after the audited accounts for Screenetics for the financial year ending on 31 July 2014 have been approved by the Board, an amount equal to 6 times the pre-tax profits achieved in that financial year (2014 PTP) less the Initial Consideration, 66.67% to be paid in Ultrasis Shares, with the balance payable in cash unless there is insufficient cash in Screenetics and the sellers of Screenetics elect to take further Ultrasis Shares equivalent to the amount of the shortfall after the audited accounts for Screenetics for the financial year ending on 31 July 2015 have been approved by the Board, an amount equal to 1 times the pre-tax profits achieved in that financial year, less 1 times the 2014 PTP, subject to a cap of £1.2 million, payable in Ultrasis Shares.
Is the difference that has pushed the prices lower today. As a percent of the overall shareholding is 0.006% of overall shares. We know the forecast id good so it is only the sellers who will lose out.
This is a very small company with just a couple of market makers, so small volumes are going to impact the price. Just look at the volumes over the past month and you will see they are a very small percent of the overall market capitalisation. Equally similar small volumes (a couple of million buy of shares) can push the price higher and I'm sure we would not be complaining too much about this. We can all see that the company is being managed far far better than at any point in the past and there appears to be some limitations on what the directors, particularly Mr. Bell can do or indeed may want to do.
Very low volumes are driving the price south. This is probably driven by a few short term punters. It seems to be a waiting game, but I'm guessing that anyone who has kept in touch with Ultrasis's recent progress and already holds many shares recognises this is a strong hold and are waited for the expected positive reporting of revenue and profits over the next couple of years. If you look at the deal that Screenetics have in place regarding share conversion based the initial sale and for offset against forthcoming profits and the prices Mr Bell has bought shares for then I cannot see these prices staying so low for any significant period. Ultimately the bottom line is what matters, so we'll have to wait a bit for that.
So based on a conservative PE of say 20 for an up and coming company the price shoud be around 5p and not the current 0.75p. All down to actual figures rather than estimates I guess.
"Screenetics just six weeks after joining the Ultrasis group has secured contracts that will add approximately £2 million per annum to group revenues" Lots more happening too. This is against Ultrasis total 2013 revenues of £977k.
Current prices.
The closer we get to the next half-year figures, and potential profits, then this should be reflected in a more stable and increasing price.
Today is the anniversary of ULT lowest ever price - just 0.223 pence per share. Until Mr Bell came to the rescue and provided the necessary direction to turn the company around and looking to start making profits this half year. Onwards and upwards.
Seems that all the very recent good forecasts and very promising news has been easily forgotten.
With guaranteed income over the next three years, a very positive future and return to profitability - holding the share gives me great confidence. Somewhat of a change from the previous Management. Keep up the 'good work', no make that 'great work' Ultrasis.