Member Info for mbingo

Think limited downside. Peel have price target of 50p. Online growing significantly. I bought some today. £20m cap is wrong for a company with £225m sales and growing online presence.

Large buys, small sells... goes up further, pauses and then I suspect doubles. Re-rating currently.

Large 16m trade at close. Lot of volume here. Directors hold 20% and 3m cash. Equity holders going to be looked after here and frankly looks very cheap at £6.5m cap after successful hit! Picked up 1.5m so 0.2% company ??

The economics are materially different at $55 Brent. Brent below $45 for October/November and gas prices flying. Hedges paired back, cost discipline, early debt repayments. Massive debt still, but can come down quickly

You’re right, they have £3.5m, perhaps a little more. There are working capital costs, salaries, premises etc. This is a big position for me. Just trying to weigh up the negatives for balance.

Think it is a very exciting prospect with CEO who had a lot of commercial success at Siemens and has a large addressable market for their products. In addition, they have a partnership with Paragraf and want to commercialise Graphene Photovoltaic solar cells which would have huge efficiencies and open up altogether new market for laptops/electronics etc. On the downside, the company need to demonstrate that they can sell the current products at scale and have limited resource available to them. Covid has been disruptive. Valued at £25m-30m, it’s fallen a long way from highs of 19p and frankly provides a great entry point, especially when the political backdrop will be a green one and as people embrace need to act around climate change. Risk v reward very attractive in my view.

Graphene is the USP. If via their JDP with Paragraf they can commercialise world first graphene solar panels, this would disrupt the sector and bring in many more markets.

Directors with equity there - important.

You have to be accountable for your own decisions. How much are you prepared to pay... just trying to help..

arbitrage opp i think.

Yep! The green movement gathering pace. Miners being able to save money and be more sustainable is a Win Win. I expect to see more contract wins, but it is the tech with Paragraf that could really make this take off - and disrupt the sector! That is worth megabucks!

There is a 2.5m trade in there! Can’t see a 200k. Hopefully means more stock held in tight hands!

The market is vast and their product is a superior product. Green is the right path for all of us, but particularly corporates - and as an investor or fund manager, a green emphasis will be important, particularly with Biden's win. The CEO has a great track record of commercial success - and is aligned with holders. Unicorn now own 5.5% the business, which is a great endorsement of the technology. Paragraf could take the product to a completely different level. Plan to to be free cash flow + by early 2021. One for the long-term!

and they’ve addressed the technical covenant breach.

Any equity raise would be accretive to the business. Would just allow them to borrow more and lend more. It’s valued at £15m - only 320m shares in issue so quite volatile.

What makes you think this? Agree on recovery potential. Dropped from 100p 5 years back. No covenant breaches now. Cash growing. Think fair value at 20p+ here...

Totally agree - think this fares better from a regulatory perspective

I also feel quite relaxed - done the dd on prior investor presentations, read and re-read RNS’s. Wrong valuation. Need the uncertainty around a potential equity raise to clear before we see a big move I think. Any raise should be accretive to the opportunity. The CEO has more than 2m shares here from original IPO at £1. The business is in a much better position right now.

In the last couple of years, dividends were at 2.6/2.7p a share, just under 50% yield at current levels.

Think this is a really good point; the board is top notch. All will be revealed shortly, but clearly HSBC have bought in in the open market as they see value and you would expect them to increase their interest (either open market or in any raise). I'm sure that they will have a positive influence on the creditor too. Bottom line (my bet anyway) is that this is not an insolvency risk - and it is still priced like one.