Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
This might be behind a paywall but the article is about another small pharma quitting AIM, calling the whole UK Market broken with funds wanting to invest only in profitable companies.
Https://www.telegraph.co.uk/business/2024/04/10/london-markets-broken-closed-pharma-boss/
There is a petition going around to make shorting illegal in the UK. It won't make your broker or the shorter very happy as they've made tidy amounts over the years. In case anybody is unaware of the shorting process it goes like this. The shorter borrows your shares from the broker, bank etc who is looking after your shares for you. He pays a fee for this. He then sells your shares, usually in significant amounts, in the hope of buying them back at a lower price some time in the future. If there is enough shorting then there is a downward pressure on the SP and the price drops. Often on the stock market, as you know, investors will follow a trend, either up or down, so more selling comes in. At some point the shorter might buy back your shares at a good profit and return them to your broker. You will be unaware that your shares have been used this way but you will be aware of the drop in the value of them.
Shorter's and brokers say that the practice improves liquidity and sorts out the weak companies but that is just spin on what is essentially an immoral practice. Smaller companies like IES need continuous funding until they reach profitability. Attacking them by shorting means that they have to dilute shareholdings more because the SP has been lowered deliberately. So not only has your share holding lost value it is hit with double whammy by having excess dilution. How this practice can be allowed is beyond me and it's about time it was stopped.
Https://petition.parliament.uk/petitions/657294/signatures/new
Could NatPower be a strategic partner? They are certainly in a hurry so won't want planning to be held up with lithium fire issues and Mistral would fit in with the Government's eagerness to promote home grown businesses. Time will tell.
Someone mentioned VRCI, coming from the same stable, as being a takeover target but there is a difference. VRCI are now well funded and have just done a big deal. This puts them in a stronger position IMHO and any TO price would have to be at a hefty premium. There does seem to be increasing action in the diagnostic market though so who knows?
I've rarely seen a company with so much genuine potential. They've issued RNS after RNS about expanding the reach and availability of their product. The field they are in, however, is notoriously conservative and the take-up has been inevitably slow. When it does come, and it will, their position will be strong and profitable. Patience will be rewarded, IMHO, but it is hard to take right now.
Looks like most of the day traders have departed and the SP has stabilised around this level which is well up on the previous level a couple of weeks ago. If they can get the test more generally used this SP level will be a thing of the past.
The latest RNS was the latest in a very long line of positive RNSs largely ignored or misunderstood by the Market. The company has been viciously shorted for a long time and they must have made a fortune in the process. The SP response has a lot to do with day trading,IMHO, but also the realisation that the latest news opens the way for the American GPs to be encouraged by the Health authorities to be proactive and use the test routinely. That's big buck which will be funded by the Government.
A Lot depends on a lot as they say. Q1 2024 is covered but during that period they will be looking at cash flow predictions. They will have a better estimate of their position and may well have taken deposits for one or two Mistral orders that have been flagged. That might give them the confidence to go for debt to finance the rest of the year instead of share dilution. Where partnerships etc. fit in to all this I have no idea. It looks like it is all coming to a head next year and the bottom line, IMHO, is that dilution may be much less, if at all, than some fear. We can only sit back and see what unfolds next year as I doubt we will get any other news this year. In the meantime I'll wish everybody here a merry Christmas and prosperous New Year
At $950 per test the gross margin must be pretty high. Everything is pointing to a huge uptake backed by insurance companies and Medicare etc. Everything is there it just needs implementation.
I agree Richard. A positive RNS and the SP drops. Makes perfect sense.
This RNS further cements the relationship IES is building with entities in Taiwan. They are obviously in a hurry to get lots of storage quickly in to the Taiwanese infrastructure and have a big target for 2025. I note that the units will be shopped this year with a probable commissioning Q1 2024 IMHO. These guys don't hang around and I wouldn't be surprised to see all the testing and validation done in H1 2024, just in time for Mistral to be formally launched.
I can't believe that Everdura and the National Laboratory haven't been talking and comparing notes. It's interesting that VS3 has been chosen by the National Laboratory. My reading is that they can get their hands on the units quickly, more quickly than Mistral by some way, and they need speed of evaluation and installation as part of their goal to get 27GW in to the system by 2025. That's a tight schedule.
RENX has lots of contracts for payment now but now the clinicians need to start using the product. They are a conservative bunch and difficult to get to use what they are not used to but the upside is that once they start using something that works they are likely to keep that as their go to treatment/investigation. You need lots of patience investing in the health sector even with a no-brainer like this.
Yes, I'm sure IES and Elemental will be able to showcase the site for future projects. It's further proof that IES is well out of the proof of concept stage and can compete on the world stage. Canada has a growing interest in renewables and is backed with a very encouraging government.