The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
OK Yesman. If you refer to the Preliminary Results announcement of 29 April it states that following the completion of the Oncomed merger on 23 April total cash resources at that point were £53.9m. Happy hunting.
OK, so once you go out on a limb there is the danger that the branch will snap & you will end up on the ground looking and feeling foolish. Nonetheless i am prepared to say that, in my humble opinion, this stock appears to be dirt cheap.
Cash @ 23 April 2019 was £53.9 million - yes, burn is high because the product portfolio is very deep & in due course a raise will be required BUT NOTE - consistent director's buying in the market, both London & on Nasdaq & and it would seem that all options are priced at a premium as are all warrants so none of the usual freebies there. The people in charge here are prepared to risk their own money & seem a cut above most management teams.
If the timetable is running to time then the Admission Document should be literally a few weeks away.
Seriously - has nobody truly posted on this stock since October 2108? That is not just "off the radar" but lost in space! On the face of it this stock has to be cheap/ What am i missing? Yes, I know that Woodford has 30% or so but value is value.
And let's not forget the current metrics. T/O for 2018 $4.6m with that for 2019 expected to be higher. Cash at 31.12.18 of $15+m. Works with global leading agencies. Ongoing discussions with significant enterprise clients. So this is not a start up. Further funding will be required but this is probably better achieved away from the glare of the stock market.
So, after today's share price gyrations, time to pause and try and rationally assess the situation. In the announcement Lisa Gordon states that one of the reasons for going private is that the market cap didn't properly reflect the value of the company. Well, it is now two-thirds less than it closed yesterday. So let's turn this story on its head - what if this company was coming to the AIM market and not leaving. It would be asking the market for funding via a placing valuing the pre money company at what? I would suggest that it would probably be raising £10+m with a total post issue value of £20+m & it would probably go toa premium. It is all about perception. So, i think the true value of the company now, stripping out all emotion, should be £6-£8m, ie 6p to 8p per share. Of course it won't achieve that given the negative emotions but it would mean that anybody buying and holding at these levels is getting into an exciting technology company for peanuts. Takes guts of course but the potential rewards are very high.
What a refreshing change to see a CEO who is a serial buyer of his company's shares. And admirable that the purchases are for the benefit of his charitable foundation. 2.5m in July alone. What a contrast to the self-serving individuals who populate so many boardrooms in the UK listed company pantheon.
Game Digital has hardly been a success but, if like Director Gibbs, you have Nil Cost options the, hey, things are OK. What a wonderful world these directors inhabit: 1.5m nil-costs @ £0.00 = £0.00 & accept offer immediately @ £0.30 = £450,000 = PROFIT £450,000. Nice job if you can get it !
Excellent update today. Just like my canary this is going cheap - unlike my canary it will not continue going cheap.
For a while i have considered Bodycote a potential suitor. Price? - Say £1 if a bidder struck now but only going northwards with the passage of time.
Clearly Kier is in something of a hole but is terminal? Firstly i am not aware of another trading update being imminent - the next scheduled announcements are [1] the conclusion of the FPK review on 30 July & [2] the preliminary results on 17 Sept + a trading update for the current year. Clearly the dividend will be scrapped to preserve cash & disposals of landbanks etc will be undertaken where attractive terms are available. But Kier still has an envionable position in the heavy end of the infrastructure construction business & a respected maintenance division. So unless the new Prime Minister turns his back on infrastructure spending, which would turn the British economy into a wasteland then Kier has every chance of surviving & prospering. And Boris has always been an infrastructure champion & will be aware of the Keynsian arguments in favour. The current slide in the SP is more sellers than buyers, ie Woodford & St James Place selling down. THe fainthearted should avoid but the brave & seasoned with the capacity for risk/reward may consider buying.
This stock is completely off the radar - just look at the message board here. Then look at the chart, the director's buying and what appears to be an acute shortage of stock & all of the ingredients for a fine meal are in place.
I would be interested to know the evidence for possible dilution?
This investment in Oyster both gives it the immediate funds it needs & takes Gun to a nice round 30%. It puts a current implied valuation of £1m on Oyster although, assuming the licence extension, the true value should be significantly higher than that. So this appears to be a solid base from which to grow & Oyster could, with favourable winds, be transformational for Gun. With a Gun market value of some £1.6m it is clearly at a discount to it's NAV + Oyster + Cash + Human Brands + Miscellaneous investments. Now up to the BOD to deliver.
So the CEO's charitable foundation [ie formed with his own money] purchased a total of some 4 million shares in May & June. That is a powerful endorsement of his belief in his company.
Businesses that have wedded themselves to operating in a certain way are often reluctant to make changes. And just as , say, an addict cannot deal with his problem until he accepts it, a business cannot grasp an opportunity until it accepts the value of that opportunity. The vibes coming from MWC is that acceptance is at hand. Some businesses will fully recognise that early adopters of breakthrough technology put them ahead of the curve. For ENET this is the major opportunity that promises a very bright future. Hopefully investors should be able to sit back and watch this play out. Furthermore, as the share price is behind it's own curve, new converts have their very own opportunity.
The cash position as at Dec 2018 will have reduced since despite modest inflows. The "Financial Review" effectively signals a fund raise in the second half of current year. Whilst the bold will buy on the back of an improving sales pipeline [although from a very low base], the cautious [sensible? / battlehardened?] will await the securing of further funding, putting the company on a more secure base. After all, with Brexit turning much of the UK economy into a wasteland, sustained only by the dear old UK consumer [but for how long?], fundraisings for small companies could be problematic. So, for me it is "wait & see"
Remission means exactly what it says. Have read this very closely & seems to be extremely positive although i am not a clinician. Let's see what the share price tells us but i suspect that Lupuzor is destined to become an important drug in te management of Lupus.
The driver this morning is the overnight set back in Bitcoin which should be no more than expected after it's meteoric rise. Ignored is the RNS re the GPU deal. Lost in the mists is the earlier Hive deal. I am a holder & maybe an adder [not one of those that bite!]. Seems a nice low risk way to play bitcoin currently.