The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
About time we had a new set of Directors to reflect the need to take our products to the market. Now we have an agency to develop our online presence, I fail to see why we need Danielle Bekker whose CV looks pretty lightweight and failed to create sales for Axisbiotix.
Financing for smaller companies is broken both on aim and the main market. Massive dilutions are common after every fundraise whilst valuations on Aim have fallen 50% since 2021. “When the tide falls all boats sink.” Pension fund holdings have fallen from 47 to 4% of the stock market. URAH’s fundraising at around the SP to cover imminent production is why I am now only holding this share and SBTX (all costs of development, production and marketing for their skincare product met by an international company- Croda).
It’s ironic that I subscribed to this web site recently and after reading this article and considering opinion on the future of UK stocks (which pension funds have stopped investing in) and the future for Aim (down 50% since 2021) and the near impossibility of funding I have sold up most of my Aim holdings. When the overall direction is overwhelmingly down, it doesn’t make sense to me to continue trading on Aim. That there have only been 10 AIM IPOs so far this year tells me the market is broken. It costs around £200k in RNS etc just to stay on Aim. I’m still holding on SBTX (but not adding) and URAH (main market and recently raised twice at around the SP).
Quite right. We should not be spending money developing new scientific discoveries but monetarising our existing science and proving up what we have. The Dermatonics founder has said that the key to past and future growth is the scientific evidence behind the product. This is the reason Modi are investing heavily in marketing our products. We are better off investing in product development through a leading university rather than paying for a Scientific Officer.
My concern when I looked at this company in the past was that their margins were too low to make good profits and their costs would face inflationary pressures. This is now being addressed with the same financial year out turn but better margins.
Looks like our first new Institutional buyer this morning with a £65k purchase. Interesting that they were willing to pay a premium. Any single purchase of 30k+ can expect to drive SP by 10-20% every time. To put this in context, another five similar purchases could double the SP. Glad I bought another 4k first thing this morning!
Fortunately I bought back in at 7-8p it still have an average of 18p. What I have noticed is a net daily buy or sell of less than +£5k can move the SP by +5%. Today there was a net £20k in buys with an SP increase of 27%. Aim is often about momentum as this excites retail investors who often get hooked and often get caught out as they are slow to sell when the SP falls with some often disastrously averaging down. SBTX doesn’t have some speculative drill or mine but a solid deal which should generate £1m+ in profit (not revenue!). What’s that worth, maybe a minimum of +30p. It’s really about whether the Sederma deal generates much greater income, alongside whatever SBTX can sell themselves. Another £1m in income means a good annual profit, leverage to make cost effective take overs and a good development budget. I’ve bought £30k worth in a month and see the SP in the 40-80p range by year end. That’s my top slice target!
Though it might have been them that sold 150,000 on opening at an 8.51 average. Obviously they stopped selling as the SP rose.
Interestingly on the Fidelity site, there is a morning star Fair Value indicator. This takes account of the Dermatonics purchase and is 16.63p
It was very good to hear that the Croda deal does allow the company to produce own label goods, hence the second acquisition is for a wholesaler. I would expect a product to be also sold through Dermatonics as this fits with their ‘science based’ approach.
Likewise. I bought 43,000 this morning before the presentation. There was a clear explanation as to the different stages in the Sederma development and confirmation from them that they will complete this (this year) in five years rather than the norm of seven. Also indicates how difficult it will be for a competitor to enter the market.
No SP target set but SA reinforces that he and MA are incentivised to hit their 80 and 50p targets. Also comments that they intend to buy more shares but are prevented from doing so whilst the current acquisition is ongoing.
Agreement expected with Winclove to reduce the retail price of Axisbiotix.
A clear rebuttal in the presentation to those saying the Sederma deal is binary. It is now in the very final stages and the launch will take place this year.
SA provides a clear rebuttal to those that say
Unfortunately IR has never been strong. It’s basic communications, to decide the key message and then communicate the benefits. The RNS should have just focused on the Sederma launch … ‘Sederma launch in 2024 to be transformational!’
Great to see a timeline for the Sederma launch. Should only be a short time until the ‘scientific’ results are published, the product named and final testing/ product formulation by retailers ahead of launch in the Autumn.
Wise words
What I want is IR that persuades others to invest/stay invested as that will improve the share price. You being persuaded to stay invested through your contact doesn’t help much. Perhaps I should follow your advice and ask ‘when CLG’s moratorium on stock sales ends in 10 days what will stop the stock falling to -5p when they offload?’ but I feel that should have been made public by now , if indeed they have an answer.
Investor relations is more than an email. It is about a conscious effort to understand the shareholder perspective (Deloitte). It should build confidence in the company, be proactive and provide an accurate account of the company by disseminating key information to enable investors to decide if the company is s a good investment. Do investors think we are a good investment? A two monthly investor meet for a company that has seen an SP collapse whilst salaries have gone up isn’t good enough.