Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
With the SP having been tonked so severely over last year from 14p down to as low as 1.5p, our MCAP even now after the recent uplift is a mere £15m and so any significant orders will be more transformational pro-rata than previously. Decent orders are now more likely therefore to be reflected in sp increases far more than before. Passing through the Continental DD process is no mean feat and todays news merely confirms the confidence an old major Murata distributor has in CPX. GLA
Yep Parkez - charges most often lead to Alts where the broker has carried out the order to buy 10,000 shares for example but the PI hasn’t allowed for the charges etc and so the broker just ‘sells back’ a tiny number to cover costs. The other time is when an MM simply transposes digits on his book and needs to rectify - for example, 14537 input as 14375 by mistake and needs to be adjusted. It’s all very innocent! GLA
Deffo/lamald
Most if not all small trades are ‘Alts’ as we used to call them on the dealing desk. An Alt is a minor change where for example you want to invest £1000 but your broker either rounds it up or down to a round figure but you then insist you wanted to invest exactly £1000 so they simply ask the MM to add or subtract a tiny number to equal the actual instruction.
I say most if not all, because there is a conspiracy theory out there which says that a 100/200/300 share trade is a code from one MM to another that they are short or long of that stock, various secret messages, etc. I don’t hold with that too much tbh as there are more discreet and effective ways than that if needed!
Happens all the time Deffo - it's simply that the price you paid was just under the spread midpoint so is recorded by LSE software as a Sell but 99% of all trades are within the spread so this happens all the time, either Buys as Sells or vice versa - you'll get used to it. The LSE software doesn't have the actual trade information itself so it guesses.
Hi other old timers - I'm still here, having put SOU in the bottom drawer years ago, haha! Funny to see posts from Crude again - trust you're still enjoying the views over Brighton and the South Coast. One can only average down so much which i did some time ago but still need a highly unlikely 8p to break even so not holding my breath! All good fun though looking back on the riverboat and Shard parties and the JP roller coaster - not fun being part of this debacle for nearly 15 years now since Gerry O - but mildly amusing recalling all the comments and even a load of us meeting up in Guildford for drinks one Saturday about 7 years ago! GLA
The sp had already collapsed before the Operational Update end of January however, even since then, it has fallen a further 60% to 1.80 from 4.50 on Jan 25th. Why? Simple - it’s not all down to the poor sales figures reported for H1 but far more likely to be the “Will they, won’t they” require funding. The further the sp falls, the more shares will be issued to raise the same amount of funding leading to……a fall in the sp! The downward spiral (see YGEN as a recent example). Best that AK can do is either issue a robust “We don’t need funding” or get on and announce it before the sp falls any further this requiring even more dilution. As Shakespeare said “If it’s to be done, ‘tis best it were done quickly”.
I believe the products are good but uncertainty always breeds sp drops and this is no exception. GLA
Cenkos new note out and they reckon the bad news is now all out there. Optimistic about sales rebounding but without litigation funding in place at an acceptable price, they think CPX may need funding by year end as cash flow will be under pressure. Mixed bag and jam tomorrow is right but at least there seems to be some jam in the jar! GLA
Actually, it’s potentially good news! It may seem like a relatively small area of Germany, Austria & Switzerland, but it’s the heart of Automotive in Europe (Audi, BMW, VW, etc) which could turn into a huge market as we go Electric.
Tentatively, it looks like a good tie-up to me. GLA
Strong trading update from MHC even though they are a one-trick pony and using our labs!! They are clearly managed better than us and demonstrates where we could have been instead of where we are. Hang your heads in shame YGEN BoD!
Just a small administrative point.... Yourgene Health UK Ltd are 1 month overdue with their accounts to Companies House ( they were due by December 31st). Sloppy.
I imagine they would argue that they couldn’t get the placing away for more and that, crucially from the point of view of fairness, they did run a Retail Offer alongside on the same terms so that you and I could subscribe at 0.003p also if desired (that said, I couldn’t as HL and others did not partake in the Bookbuild which is unfair but..!).
That I think would be the Nomad argument regarding fairness to other investors
Also, to put it in perspective from their point of view, the day before the huge placing, they averaged around:
- Bill 80,000,000 @ 7.54p
- Lyn 2,037,902 @ 9.57p
- Adam 6,473,773 @ 6.65p (at least)
- Stephen 6,726,735 @ 4.18p (at least)
- John Brown 352,450 @ 14.47p
- Hayden Jeffreys 688,844 @ 10.14p
- Barry Hextall 600,000 @ 15.60p
One could therefore argue that a large amount of self preservation from the BoD was in the decision to make it 0.003p and average down hugely! GLA
Hemo - re Bill, I took his 59% share of Yourgene shares when converted into YGEN or NIPT as then was. The price was covered by the issue of 76,054,570 shares of 9p each and Bills 59.50% share therefore was valued at £4,072,722 so I used that as his starting point (45,252,469 shares in NIPT @ 0.09p each. The other figures I took from his market deals at the prices given in the various RNS and got to 2.22p average.
Going through all their trades pre- and post-Placing, these are the BoD's holdings, averages and total investment to date:
Bill Chang - 302,920,142 shares @ average 2.22p - c. £6,725,000 invested*
Lyn Rees - 85,371,235 @ average 0.521p - c. £445,000 invested
Adam Reynolds - 39,807,106 @ average 1.33p - c. £529,435 invested**
Stephen Little - 33,393,402 @ average 1.08p - c. £360,650 invested**
John Brown - 33,685,783 @ average 0.448p - c. £151,000 invested
Barry Hextall - 6,500,00 @ average 1.76p - c.114,500 invested
Hayden Jeffreys - 3,827,482 @ average 2.13p - c. £81,350 invested
So, today, not one director is above water with John Brown roughly breaking even (0.45), Lyn Rees needing 0.52 and the others needing at least 1p+ and Bill the highest needing 2.22p just to break even, which is nearly 6x where we are now, or a MCAP of c.£70m.
* Bill's average includes his initial 45m shares valued at c.£4m when Yourgene was taken over
** Both Adam and Stephen began with 2,301,137 and 2,272,727 respectively when Premaitha was born but I cannot find out what that 'cost' them so their averages of 1.33p and 1.08p are actually much higher in real life.
Conclusion: We can complain as much as we like, and with considerable justification, however your BoD have invested at least £8,406,935 and the largest investor would like 2.22p to break even. So, it's not all doom and gloom, follow the BoD, be patient and one should take heart that they are not investing without expecting a serious re-rating imho! GLA
Although yet another employee(!), this one looks like a good choice with experience where we need it….finally! Should bode well for the future GLA
13M so he now owns nearly 10% of the company which is very encouraging. That said, as he is effectively YGEN Taiwan, and we're looking to divest Taiwan, what are the implications of that?