Member Info for Montmuzard

Totally bonkers action. Not even a P&D in the classic sense. MMs just killed it. Mad that they finished flat on that news. I only bought a small chunk but will be holding as this strikes me as the kind of stock that could go up exponentially if the JV is successful in proving up all the additional assets over time.

It’ll bounce once the market catches on

“Electric Guitar PLC (LSE: ELEG) is an AIM Rule 15 cash shell under the AIM Rules. The Company’s strategy is to invest in and/or acquire companies which show significant potential for growth, cash-generation, and a profitable exit in the medium term”.

Interesting …

Big numbers for such a small company. The MMs have basically destroyed any trading in it though with this spread. Either that or they’re filling big orders.

Ah, no, the $300k is the $10k monthly payments included in the $850k. But still, the point stands: this is big money for such a small company. Hence why someone bought 16m shares on the dip an hour ago.

So they get $300k, the $850k-$1.3m, and potentially 60% of another 90k/month for ancillary services. That’s as much as $2m in gross revenues over the next 12 months. Without accounting for any further upside from the other assets. So basically considerably more cash than the current MCap.

Yeah it’s a dense and poorly written RNS. But the headline is revenues of around $1m for a £1m-MCap. Predict we get a strong bounce this afternoon here once more people have digested it properly.

A company with $850k-$1.3m of revenue coming in cannot stay at a £1m MCap for long.

I sold out my last bit today as well I'm afraid. Got out evens with most previously. He's done a great job of spinning a narrative the past few weeks while he must have known this was coming.

"Interestingly though, given the current global situation with Helium specifically, it would make perfect sense for someone to come along and say "subject to commerciality, we'd be interested..." as ring-fencing it would make perfect commercial sense."

Agree completely and this is what I was getting at yesterday. I can see that it's very early for offtake discussions. But, equally, the world has changed a lot in the past six weeks and the supply crunch is becoming desperate. It would be a drop in the ocean for a company like SpaceX to pony up $20m to accelerate development and do the build out while setting that against future supply.

Don’t want to count any chickens, but thinking out loud: in light of the “inward” interest from institutional investors, what are the chances the company already has some in-principle offers from potential offtakers in light of specific flow rates and concentrations?

Two things seem to be happening: one is rising spot prices (up to $1200 and maybe rising, meaning our reserves once confirmed are worth over $1bn in ground) and pressure on anyone who needs helium to ensure rapid, stable supply with no alternatives rendering it highly price-inelastic. The other is the fact that the Directors have all ponied up their own cash now, which surely implies they would ideally want to avoid another raise any time soon or at least not at these prices.

So, I wonder if the institutions that put up the £5m also have an offtaker or series of them that is prepared to sign some long-term contracts once the results come out. If that happened, and they put some of the cash up front to accelerate development, it would eliminate dilution risk and make a strong rerate spectacular. Would love to hear others’ thoughts.

Surely that $330m needs to be revised upwards given the way helium spot prices are going? Supply disruptions won’t be over any time soon. Even when they are, prices will remain sticky and Americans will be looking for jurisdictional security. All of these should add a nice little premium to whatever rise we get as the drilling results come in.

Once the overhang has cleared, we should start seeing a nice rise in anticipation of massive news.

Major catalyst here is surely the asset sale, which could drop at that moment. At that point the company will be well cashed up - maybe as much as $15m - and fully funded for drilling sunbeam and pettgrew. It'll be a £30m company at that point IMO.

The whopper that has just landed is most certainly a buy.

They look like rollovers to me.

I think the scale of the big buys and the director commitment suggests they are confident it’s a gusher 🤞🏻

MMs have cheekily dropped the bid on nothing but buys still massively outweighing sells

Volume about 5.5m now - barely 1m of that sells. Has to move up shortly. Barely any stock now left at 49.

Only a single sell, too: 3m buys, 500K sells.