Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
My numbers are not silly. They are correct.
These figures are from a note by broker Dowgate Capital published on 9 November 2023.
S4 Capital 2023F EBITDA: £90m
2023F Net debt: £218
Market Cap at 46p: £268m
Enterprise Value (market cap plus net debt): £486m
EV/EBITDA (£486m/£90m): 5.4x
WPP trades at 4.5x EV/2023F EBITDA. M&C Saatchi trades at 3.8x. Were S4 Capital to trade inline with WPP its shares would have to fall to 30p. And to trade inline with M&C Saatchi then S4 Capital shares should trade at 20p.
At a share price of 45p, S4 Capital is currently valued at 5.3x EV/2023F EBITDA. That is a premium valuation compared to WPP which currently is valued at 4.5x EV/2023F EBITDA.
Were S4 Capital to trade on the same valuation as WPP, its shares would have to fall to 30p.
shore capital says the shares are worth 200p
https://www.proactiveinvestors.co.uk/companies/news/1030355/rank-group-sailing-towards-*****upling-profits-says-analyst-1030355.html
In his presentation, the CEO clearly stated that the company is targeting being cashflow breakeven by Q2 2024. If he achieves this the stock will rise significantly from current levels. It is as simple as that. This is the first time since the company was listed that we have a target for breakeven.
Also the CEO said that he has cut £600K of annual costs since H1 2023 by reducing various central overheads. And he is targeting a gross margin of 45% in the medium term.
really worth listening to this presentation today by the east imperial ceo. he details very precisely the way the company is going to get to profitability over the next 12 months. and after this summer's fund raising it has the cash to make it happen:
https://www.***************************/east-imperial-plc-2023-interims-and-strategic-plans-by-tony-burt-ceo/4121131862
Why Mobico shares are down today?
Arriva has been purchased for EUR 1.6bln today by private equity firm I Squared Capital. Arriva has annual revenues of EUR 4.2bln. That is a revenue multiple of 0.4x (1.6bln/4.2bln).
Applying a 0.4x multiple to Mobico annual revenues (which are forecast to hit £3.1bln this year) gives you an enterprise value of £1,240m. The company has net debt of £1,169m. So the implied market capitalisation of Mobico is £71m (£1,240m minus £1,169m) which is 12p per share.
Based on this valuation, Mobico shares still have a long way to fall>
Not only does the CEO need to get the share price up to reduce the dilutive effect of the convertible loan but do not forget that he has pledged 75% of his shareholding as security for the loan. So he is all in on this. He needs the share price to rise just as much as everyone else. In fact more so given he has dedicated the last 10 years of his life to building the East Imperial.
The sudden slew of news on RNS and Twitter after the convertible loan was announced were probably deals that had been done some time previously and had been held back because to announce them against the background of an unfunded company would have been largely pointless.