Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
This is very interesting I think maybe we should keep an eye on this. Maybe some speculators are preparing for a pump and dump. It could be a signal to indicate to someone to sell and get out. Do you mind posting again, if you see this?
Interestingly, also the first trade of the day:
06-Mar-20 08:22:41 1.65 1
Do you think it's an insider or maybe a broker trying to tell something to somebody else?
They seem to have done a good job in controlling expenses even if commercial progress remains slow. Let's hope that this expense control will encourage the larger shareholders to subscribe to the new equity raise that I see being needed. They had £2.7m of cash and the £ 0.7m of US Bank borrowings. Their inventory levels were high - alluded to in the text and a result of the slower sales. Run down of these will produce some cash although much will be in the USA and financed by the loan. They are correct to point out in the Outlook Statement the need for continued investment and that the easy pickings of cost control have been achieved. I note that in the last three semesters operating cash outflow before working capital has been around £2m per semester. I note that the Going Concern Statement which I read carefully makes no mention of a need for an Equity raise. The key item in the cash flow statement of this last half was the income tax received and we need to note that the tax receivable as a current asset as 311219 was at £149k lower than the year before (I guess this reflects reduction in R&D expenditure) but will not produce the same cash flow bonanza this year. I did not get the sense that a big uplift in sales is in the immediate offing. I see the current ratio was reasonably healthy. Also good for them that they got the results out in a timely fashion. Their accounts and business are sufficiently simple that they should be able to get the results out within two months : that said companies who wait for the end of the three month period give me a poor impression. It would have been good to get some segment analysis figures.
I found some interesting thing about 10 badggers online and I thought to share, because I think Haydale has all the characteristics of one. I would appreciate if you woul have a read and let me know what you think, if you agree or disagree and why this is applicable to Haydale:
1. They are tremendous innovators. Companies that rise 10-fold or more offer revolutionary technologies, new medical devices, blockbuster drugs, and other state-of-the-art products and services. Over the last 10 years, for instance,
investors have been stunned by the moves up in Tesla Motors (Nasdaq: TSLA) with its electric cars, Apple (Nasdaq: AAPL) with its cuttingedge electronics, and Amazon.com (Nasdaq:AMZN) with its breakthrough e-commerce
platform and one-click ordering system.
2. They experience terrific sales growth. Notice I said sales growth, not profit growth. A lot of the best-performing companies were not profitable in the early stages of their run-ups. But even if they were losing money, they usually
experienced top-line growth of 30% or more.
3. They protect their margins. Huge sales numbers attract competition the way honey attracts bears. That means a firm has to be able to protect its innovation with patents, brand names and trademarks. Otherwise, competitors will flock to the industry, grab market share and force down margins.
4. They beat consensus estimates. Some investors think earnings alone propel stocks higher. This is largely true over the very long term. But in the nearer term, it is all about beating expectations. Even if a company loses money, if the loss is smaller than expected it can register as a significant beat. That means the shares are likely to push northward.
5. They are small cap to midcap companies. It will not surprise you to learn that most of the best-performing stocks of the last few decades started out as small companies. A study by the Chicago research firm Ibbotson Associates reveals that every dollar invested in a basket of large cap stocks in 1926 and held through the end of May of this year – with dividends
reinvested – would have grown to more than $5,200. But every dollar invested in a basket of small cap stocks would have grown over the same period to more than $25,100. Huge companies simply can’t grow at the breakneck pace of smaller companies.
6. They are relatively unknown. The fewer people who understand what a company is doing – and the less media attention and Wall Street coverage it gets – the better the chance that the shares are mispriced. Hot stocks with splashy stories have not been the best performers historically. By the time a company becomes widely known, much of its parabolic move upward may well be over.
7. They have had at least one near-death experience. It would be pleasant to believe that the best-performing stocks of the past just pushed steadily higher in a more or less straight line. But that is almost never the case. Virtually all of them took significant tumbles along t
Today HAYD price went up nearly 16%, due to this subscription to raise. I am a bit confused, hopefully someone can actually clarify me this doubts:
- I thought that subscriptions between companies and private investors are only done if the company is limited. But Haydale is publicly traded. How is this allowed? How I think I understand what is happening is that, Haydale since is publicly traded is only allowed to do this as long as issues an equal amount of shares to the ones that the private investor wants. This way the market remains fair to those who trade at market price. Do you think this makes sense? I am quite confused as how a publicly trade company can do a 1 to 1 deal.
- Will Haydale actually print new 22.5M shares or will it give them from the existing holdings?
- If they are printing new shares this will dilute the equity per shareholder, I am not sure I understand why the market goes up, just because it's at a fixed 0.02 price.
If anyone who has a bit more experience than me with AIM and small cap, could explain me a bit about this last RNS, I would appreciate.
Your fear is making me greedy ;)
I was researching a bit, and by chance I found 2 very recent technical analysis on Haydale, both calling for a long position.
I don't know if you guys are into technical, indicators, etc, but here I leave it if you are curious:
https://www.tradingview.com/symbols/LSE-HAYD/ideas/
I was reading it also today, I am quite happy yes looks good, I think haydale is now at a crucial stage, they need to keep working hard and they will succeed I am sure.
Here the link for those who didn't read it yet:
https://www.hardmanandco.com/research/corporate-research/cost-savings-evident-revenue-growth-to-come/?dm_i=49CL,OUK8,ZPOPX,2XWFV,1
http://www.haydale-ir.com/content/news/archive/2019/151019b.asp
http://www.haydale-ir.com/content/investors/latest-results.asp
Haydale just published full year results today. Thoughts/Comments please
In the last report that was released in February 2019 (the one for 2018), David Banks said that the goal of Haydale is profitability by 2020. I think we shall see how things look like in February 2020(just a few months). Hopefully if is decent the markets will react positively.
@Scampthedog
You are making a very interesting point. If it was the case that they want to scale, since they cannot use shares to finance anymore their other option would be debt. Haydayle has a very low debt to equity to equity ratio(just 0.49), if they were to decide to get some debt to tackle a project I think they would be able to manage it. Debt it's an essential part of growth and scaling. If they were to receive a large contract I am confident they would do just fine by taking some debt.
I am following Haydale for some months already and I am finding it a very interesting stock. Also I am a new member to this website I discovered it yesterday. I just want to also hear a bit the opinion of some of others regarding this company. I am happy to share my observations and also my doubts and I would really appreciate if those who know more about this company than me could comment a bit on their views.
This are the main observations why Haydale caught my eye:
- Low debt
- Big margin of safety(Intrinsic value based on cash flows indicates intrinsic value is around 0.44£)
- Globaly distributed company(UK, US, Korea)
- Low Beta value 0.1818(According to FT)
- Multiple good contracts(That I am aware of: Space Agency, National Grid, Asia Bank notes, and maybe others)
- Recetly restructured and management changed
Some of my doubts are:
- I hear a lot that it is difficult to make the graphene dream come true. I am just wondering if those coatings for gas tanks or inks for bank notes, etc... are products that are
ready to be comerciallised or is everything just yet in research stage?
- Is Haydale capable of scaling it's operations in case of a big demand?
- The former CEO Ray Gibbs recently left, what was he like? Do investors like more the new CEO? I read some threads that Haydale is not good at managing money, I woulda like to understand a bit more about it.
- I think Haydale will not be affected by Brexit much but maybe others don't think the same, I would like to see what are other people views on this.
- It fell from 0.4£ to 0.02£ just 2 or 3 months back, I don't understand why did the management undervalued the company so much in that corporate action. It seems like they were desperate for money. I think actually they didn't manage to get all the money they wanted. I never understood that move.