The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
For those who haven't had the ill fortune to interact with Rob, he is best characterised as a troll who lingers like a bad smell. He was particularly vile and foul mouthed on twitter until he was banned. His posting history demonstrates his chameleon-like changing colours and despite what he says about having no agenda this is quite frankly a lie. I would suggest to put him on filter and report. Some of the posts today are bordering libellous, particularly the suggestion that Matt was colluding with Asimwe Kabunga to manipulate and deceive the market. This is absurd and has no basis whatsoever and should be reported. Matt is THE major shareholder in this company and along with his family and friends has arguably the biggest interest in its success. His recent investment in the placement is testimony to this. Although the last few years have been rocky for investors, I believe the new project will breathe life into Armadale.
PF is quietly focusing on the business as he has been doing to get the DRC over the line. People have been writing him off, he is not making the noise traders would like to see, i.e. ramp, place, rinse and repeat. This is now turning into a proper and viable business, not the WSG of old. I am confident things will turn here and happy for PF to get on with things in the background. As investors, we will have the last laugh, traders will only make so much trying to game the SP but if you accumulate in times such - as this as many of us were doing in the 1s when derampers were all over it - we will reap big rewards. I say watch this space, big few weeks and months ahead AIMHO
The headline is $10m ratified contract with a government led by a UK trade delegation. You seem to stuck in a time warp. The ferry contract was internal miscalculation, they messed that up. This is not a comparable contract in any way. Why don't you provide a valuation of the company based on this. You have numbers available to you now, is 2.6p a share a fair valuation?
The board have said they value this deal alone at 10p per share on current data. This is based on the CFOs internal calculations. As revenues begin and with the transition to profitability we will be able forecast, the valuation gap will start to close. Only a matter of time now
There are those who have sold out hoping for a cheaper buy back and those who are still selling anticipating a deeply discounted placing. The market is tentative now as volumes have dried up but watch them pile back in as the tide turns. We need the company to announce a funding package on good terms, I hope soon. By the time first revenues are received in early H2 I don't think the share price will be trading anywhere near to current price.
For the record the company has never said they won't dilute for this contract, neither have they said they will. Their preferred funding route is debt finance as per the RNS. Let's be clear on this. I would say however the best time to place if they wanted to would've been immediately after the news as they did when the original DRC contract came through in 2021. There has been no PR following the news and Pete has said that there are a number of funding options on the table which they will take their time to consider. They will take up what is best for the company.
He also said that the initial upfront costs are a lot lower than people think. On top of the £800k in the bank they have unused overdraft facilities. CFO confirmed that they are trading around break even and anticipate profitability by this December interims. That is free cash flow at their disposal, I'm sure they will take this into careful consideration when announcing any funding package. The final thing to add is they are looking for a long term debt funding which also takes care of another "extremely advanced" MSC. By the time that lands it will be all systems go hence the careful deliberation on the various funding packages.
Many CEOs on AIMs are only there to sell stories and pay their salaries. If you buy everything they promise you are likely to suffer considerable heartache. PF is no different. It's all about action and results - this time you're seeing it, previously it was jam. Only 90 days before decent revenues start to come in and the ship starts to move.
Peter has finally delivered. This will be his redemption. Market is tentative for understandable reasons which is primarily the lack of clarity around funding. It is easy to see on the horizon a double figure share price for any well-informed and reflective investor. This can be valued objectively without being passed off as baseless ramping. Only a black swan event can derail us this time IMO. A bit of patience required as the market catches up. Traders might not have that time on their hands evidently but I certainly do.
No, that market has never heard the company having a ratified contract bringing in $10m minimum revenues per year, confirmed, signed and done. This was done in the presence of a UK trade delegation with government officials present - not jam tomorrow, not a cowboy contract. This is real and has NOT happened before.
Pressure to get what away exactly? We just received a transformational RNS. The DRC rollout itself will have connected news flow starting with finance. Expect to see some interviews to follow to increase awareness in the investors space. An extremely advanced MSC is anticipated this year. When that comes through you'll be pleased to know that the RNS will be signed off by the NOMAD just as the DRC one was. Investors will make a lot of money from HEREON, the past is now water under the bridge as far as I am concerned. WSG is a different beast altogether and the next 12-18 months will reflect that.
The difference is now you will have a company which will have $20m revenues by end of the next financial year and producing profit. A small amount of debt to get us kick started won't hurt one bit. Previous debts were taken as we were not cash generative and needed to keep lights on. Things have changed. It is also noteworthy that the $10m DRC figure is the minimum we will receive in year 1. This could go up once we get a clearer picture of the latest passenger data. WSG is not the same company it once was and has taken what seems like an age to get to this point.
WSG is one of the few companies which has not diluted share holders since 2021. Despite derampers slating the company and accusing them for so long they have protected shareholders in what has been a torrid time for investors . So many companies have diluted their shareholders to oblivion or completely gone bust. Now that WSG is on the brink of profitability I don't think they're about to shaft shareholders. PF in yesterday's call explicitly state that debt is the "preferred" means of funding and the initial amount is not big. They are spoilt for choice in terms of funding options and will select what is best, it's a good dilemma to have. UKEF and others will be in picture over the longer term as the project is gradually rolled out. Those conflating our funding with a "lights-on placing" are driven by an agenda, that is plain as day for all to see. Enjoy the price whilst it's low - value will out and those lapping up the cheap shares will do very well. The company is turning a massive corner and the shares are closer to historic lows - so much scope for growth and appreciation.
The ratified contract is a gamechanger for the company. We are expected to tip into profitability next year. Once we are cash generative the company will no longer rely on the market and will be growth focused. The share price will align in time, now is the time to accumulate shares. WSG has been one of the better companies on AIM not having issued any shares over the past 3 years, carefully managing cash in what has been a torrid time on AIM and the markets in general. Following Covid, then the Ukraine war and unstable markets the board has been very sensitive to its shareholders. They're not about to rinse us now despite what people may have you believe. $10m additional revenues IS significant and will only rise. GLA
Peter is expected two further near terms MSCs to land. 2024 will see a double figure share price. This is truly an amazing achievement for the company and transformational in every sense of the work. Well done to Peter and all the long term investors that held their nerve. GLA, onwards and upwards