Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
Why would delisting be a threat? I have made a few posts about MMAG in the past and have generally be correct based on logic and facts. Personally if I were the board of MMAG I would not de-list, it does not make any sense, as they would have lower liquidity for selling shares and the firm does not need to raise capital.
Here are the facts:
- Net assets: £12.3 (11.4p per share)
- MCAP: £7.2m
- Damian Hanson invested £100k in Jan/Feb, he is a business phone CEO startup.
- Price has been downward since Cannacord Genuity started selling their entire share, they have stopped selling 28th Jan. Supply and Demand has impacted us here and we have had no catalyst for a boost.
- delist requires 75% shareholder approval, management combined own 27% and according to website only 48% is in private hands (according to MMAG website). It is not in the incentive for private firms e.g. Schroders, to want to de list, as well as any other new investors.
- the most recent report stated cash is sustainable to march 2025, based on significant adverse unlikely scenarios.
- HSBC and NatWest Banks backing until 2026, with interest rates likely to fall at this point, financing expenses will definitely fall. Furthermore, given that now we will be completing less rentals, debt is likely to reduce and therefore financing expense.
- debt has increased due to more handsets for rentals, however, they are also considered assets as they have an outright sale value.
- delisting would negatively impact the employee benefit trust scheme, as employees would have difficulty selling, so imagine they would not be happy.
- gross margin has improved on tech and cost cutting measures are being implemented. The company are trying to become leaner definitely.
- sales of £136.6m is no small feat. If more investment from a new buyer can invest in efficiencies, gross margin could be improved significantly. Therefore, this could mean a profitable firm in the long run in terms of net margin.
- so the minimum i would expect (this is based on various assumptions) NAV + rental assets as debt and reduced finance (£7m) brand name and sales channel (£15m) inc Walmart, Asda, Declutrr. Circa £35m so around £0.325 per share.
This is my opinion only.
Broker forecast likely it be having an impact. Again not sure on the drop but it is opportunity.
- £4bn revenue
- £400m liquidity as well as CEO confirming no raise needed
- ASOS global reach Asos has, so I think there there could be a seller.
Economy is slowly coming back and hopefully Asos will too
Pros
- £4bn pa revenue, this is being leaned down to produce more profit and is currently working.
- cost cutting
- leaner stock management
- £400m liquidity, with no need to raise in the next year.
- economy in the UK improving and globally in terms of inflation. ( mainly food prices still inflating)
- market cap only £460m
- huge global presence
- NAV per share: £7.94, current SP £4.57
Cons
- lower revenue by 8%( although explained that 50% of this was on purpose, so reality is 4% drop)
- lower profit significantly (although, stock write off was already know if £100m)
- uncertainty on economy and if no improvement in economics would reduce growth (still increases gross profit by 2% in H2, reduced inventory of 20%, FCF £150m, CAPEX in line,
Strange behaviour of this stock and expect blue end of day in my opinion
Hi All,
New to this board and have done a bit of research, please correct me on below of anything sounds incorrect:
Pros
- FSS contract secured with revenue to be in £100ms of coming years
- significant pipeline in billions (although not won)
- cheap considering market cap of only £27m
- Ismandgee closure could see a huge spike in further revenues in £100ms
- increased facility to $ 100m while new £200m facility closes. Reducing needs for capital raise, the company also states they have looked at long term asset financing instead (instead of capital raise?)
- UK export finance talks could improve financing position. One would hope that this would be in HARL favour due to nature of green business and targets of net zero.
Risks
- debt facility potentially delayed or not closing?
- potential placing for capital investment required (although less probable IMO)
- Ismandgee review, please could someone elaborate on this point? I have not been able to conclude what the issue is? What are we waiting for conclusion wise?
Another stock that should do well given the positive outlook that is generally felt:
- shorts closing - from 10% to 4.5% since November, historically looking at the short charts you can see that price and shorts move in opposite directions, we haven’t had the appreciation yet in boo share price (so is it to come?)
- cost savings and automation efficiency
- expanding sales potential to £5bn in US by early 2024
- reputable brand and brands names
- cash in the bank and available of over £300m
- economy improving, with gas, wheat and other commodities reducing in price significantly.
- supply chain improvements and china opening up
I have to disagree here, there are many ethical people, including myself, that would pay this much. Why are you here also if it’s not a business proposition? Clearly this is a business proposition with over £600m in sales. Do you have a £600m turnover business?(which is only currently valued at £100m)
Break even is better than a loss, especially with the current environment. However I want to list pros and cons below:
Pros
- recovering brand name
- recovering economy - gas prices have dropped to April 2021 lows, this should work through once forward contracts are over.
- cash in the bank so little risk of default
- environmentally friendly which is very saleable today
- costs will normalise
- revenue increasing
- CEO buying £2m at )1.11, only circa 5% cheaper than now. Owning 23% of the company.
Cannacord genuity and Schroders taking a stake, totalling over 10% of the company.
- retail has had a battering and is evident in other retail stock e.g. asos, boohoo. Quiz etc
Cons
- time to wait for a profit
- market still uncertain
- more of a winter performer
- high finance costs with new facility, this is factored into costs for this year however.
Furthermore I have only said good things about this stock see prior posts. Not only that, how is a range of 25p-30p unrealistic? A few weeks ago it was in the range. I personally think this is possible given the potential bull market incoming, with people going for more liquid less risky stocks. Let’s see anyhow.
Hi Wyndrum, I have no evidence or thought process behind the fall, I just stated this as price range I am comfortable investing at, not the price it will go to. I agree, psychological pressure does increase of course but there are always other stocks to buy and always other opportunities. Only reason I haven’t bought already is due to the lack of liquidity in this stock, it was difficult to sell the holding I had prior ( 104,000) without the price dropping.
This stock is going to go to the moon for sure. Only problem at the moment is waiting for the correct time to buy and sell. It does have some liquidity issues when trying to both buy and sell which defo puts me off and I really only want to ideally invest at range 25-30p (sadly sold at 27p). It’s a tough one to call but this will do extremely well this year, just want the best price possible before it does, will it dip who knows but I’m certain it will be higher than 75p YE, especially with tech arrangements with literally Walmart, the largest retailer in the world!!
Looking like an interesting stock that’s under the radar
Pros
- market cap of £42m with NET assets of £145 and revenue of over £250m
- strong balance sheet with $30m in cash
- director buys, with CEO buying £400k worth
- Cannacord Genuity increasing stake by nearly 2%
- 56% shares held, so small fee float ( can move fast as seen)
- growing business
- glasses needed regardless of recession
- capital raise at 210p with no discount, 100% subscription
Cons
- trading update could be poor but this is priced IMO
- recession continues
- inflation costs of energy
Antlev you are a banter king / my favorite deramper. Please evidence your findings? That is right, you unfortunately cant. I remember the days when Antlev was on the board about a month ago when everything was doom and gloom. Now hes hoping to jump in the teens to make a 120% gain ( which i guess he missed out on). Check out Antlevs post in the past for evidence, some of us do cite our findings. I also have a few posts ( last two were my opinion, check before those) which have hard facts and reasons this should do very well.
Sell quote for £25k, never can usually get a quote for that much. I think from my early comment there is now a lot of buying pressure at this price, selling pressure earlier this morning at the 26p point. I think this will leave higher today, the company is very undervalued and i think this is a opportunity to purchase temporarily, those trading this know this also.
I was hoping for increased revenue as well as perhaps a better update on corporate rentals. Corporate is of course very new still and I am sure there will be updates. However, I think it will be in the new year as everything winds down for Christmas. It is good to see that retail rentals are performing strongly and continue to do so.
I still believe that this stock is going to rocket in the future, however the trading update could have been more detailed.
- update on kiosk?
- update on any new larger firm rental contracts?
- EBITDA I guess is in line but low, as they have not stated the figure like they did in the last trading update.
I certainly believe this will go higher and over and above £1, however short term with few SP catalysts that we can predict, I think there will be some volatility on this. Nowhere near the levels of 10-15p, but perhaps more around the 19/20p mark. This is all my opinion.