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The broker note also says: it is developing its attractiveness in a very active podcast M&A market, with acquisitions at 4-10x EV/Sales by mega-cap tech and audio tech peers since 2019.
Their forecast revenues of $83m for FY22 gives a valuation range of $332m - $830m or £15.5/share to a WHOPPING £38.75 per share. We can dream but definite upside here!
The average daily volume is 99k shares, which is around £40k, so I'd say:
- One 75,000 share sale
- Five, 50k share sells
- Two c. 40k share sells
is quite unusual, despite the news. If anything, this should be the time to buy more as the business proposition has been de-risked.
Well the price opened at 55p and dropped to around 45p, with at least £200k sold off during the first 30 mins of trading. For SRT that's pretty big (I've followed the company for a number of years). Clearly a lot of people have been waiting for this event and have sold it but as TruroTrader says, this is just the first step and hopefully some institutions will be attracted soon.
While they seek engineering perfection for Toral they will have spent so much money and diluted so much that the project return for long standing shareholders will be so low. Get a business brain and get on with things already rather than trying to craft the perfect project!!
Also on the placing price agree this is a function of having to dilute so much but again it's an example of not managing the company properly and the Board not being aligned to shareholders. Now when we see broker notes with a target price of say 30p, we have to share it among twice as many shareholders, so it's effectively a 15p target...and if you've invested at 5p, 10p, 15p as I suspect a lot of us have, the upside has now been severely dented.
Of course this is a high risk play but when management makes noises that they won't need to raise because they are pursuing alternatives to realise value this feels terribly disingenuous. I simply think this is the final straw and they cant be trusted.
Ok good point Chrisp but it’s yet another example of extremely poor communication. To the outside world it’s come out of nowhere and looks like the company is in a bit of a pickle and as usual throws up more questions than answers. Can’t LR host a Q&A session with shareholders?
I think all the Board should have to take a pay cut in line with the discount the placing was at. They refuse to even invest their own money in the project and it is utterly atrocious management. I’ve had time to reflect on the placing and it’s only made me more angry. They are just not aligned with their loyal shareholders
Thought I'd seen it all with this company but the 100 share seller is back. It's the most ridiculous way to exit a position hahaha. Excellent results btw, continuing to hold this even through all the pain we've endured with the share price, the fundamentals look very strong