RE: Placing12 Jan 2019 12:48
In the interest of balance: Geocurve revenue was 600k in H1 18. H2 was circa 400k. Surveying is supposed to be busier in H2, being a cyclical business I read. So the numbers for H2 were a bit disappointing for me.
Secondly, the timing of the raise was a surprise. If the business needed cash raised, it could have been anticipated earlier when the share price was higher; but of course it would have resulted in less dilution. This may be contrary to the objective of getting as much of the pie as possible. Plenty of investors have been patiently waiting and accumulating here over the last year (myself included), at much higher prices. It would appear we could have gotten in much cheaper had we waited. But that’s just hindsight which is always 20/20. Loyalty is not rewarded any more in the financial world. The best mobile phone deal, the best mortgage rate, the best insurance quote, goes to the “new customer”. We ordinary PIs have to grudgingly concede that we are not privy to inner workings, that no one puts their cash in, without thinking of lining their own pockets first. This co was on the verge of shutting down, with huge dilutions every 3-6 months, so no doubt it’s a sort of Phoenix. I have no doubt that the new board has rescued it. I think a board with proverbial skin in the game, working to add value to their own holding, is a far better scenario than one which just gets a fat salary. The share price is languishing, and unfortunately does not reflect any of the hard work put in here or the language “spectacular turnaround”. But a perceived value-share price disconnect is exactly what makes this attractive imho. It is impossible to assign value to the businesses, and until we get some concrete news on the route to profitability (esp GyroMetric), sp is unlikely to move. This will happen in 2019, in my humble opinion. As always there are risks in execution, wider markets which look shaky. But the sectors and project types being targeted look solid: infrastructure projects well into execution ex nuclear building, nuclear Decommissioning, flood defence, UAV led surveying, wind turbine monitoring in a burgeoning industry etc. Just my humble opinions. DYOR.
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