The company is unprofessionally managed by the BOD and GM. They find themselves in litigation and not doing an appropriate provision (now corrected). Went from 11m to what 210m now dropping back to 100m maybe lower again as approvals are late. The history an pedigree of the new CEO is crap. Look at the share graph of his previous company. Shambolic mess is abundantly evident. Need to hope the new CEO has grown from his mistakes and isn’t greedy on his remuneration. We need some nice surprises for once and real progress. I think it’s going to trade 250p plus / minus 20p until we see some audited improved results and a growth in bottom line and net cash (If we do get those in the March results) and the settlement and a list on new contracts that get revenue north of 150m per orders and estimates then 600p to 700p is possible). Right now it’s a risky value trap and II’s are keeping well away from it (it’s lost investor trust bottom line). Is the CEO leaving replacing himself with a weak candidate before all the Pooh hits the fan and he can dump his stock without Director declaration announcements. Seems the inside money is leaving and looks like further to fall - Maybe back to the 50p share it always was. Hope I’m absolutely wrong, I’m Heavily invested but not got any wool pulled over my eyes here and will stay invested until I can looked at the March audited accounts - It’s not a short term investment any more if it ever was based upon IV theory (Implied volatility). GLA.
Cash is king, continues to post enourmous bottom line losses £24m and £17m. Yes solid revenue increases but maybe buying business in an overcrowded arena. The positives are overly sold, time will out - Only for the very brave. Future looks bleak with supply chain issues and freight costs that data shows wipes out most of the margins.
GR will be delaying signing off for some significant and negative that breaching statutory. If not they can share how numbers are being treated in the accounts. This is how Lookers started out before the bomb went off and the company quite correctly got smashed on the rocks, sadly the SP with it. DX. has had an amazing turnaround - Perhaps to amazing. Anyway time will out as always.
What a pile of crap. IQE put in an expensive traceable records Manufacturing Execution System and zero value add apart from product recalls or fake copy identification which frankly they should have had at inception. Then make a an RNS announcement puffing it all up. Complete toss**s. Management need clearing out, they are pretty fanned inept. Hoping the assets and IP make it worth a takeover at 80p to break even on this pile of ****e.
I like the fact that they are not interested in paying dividends and are looking to wipe out their debt and refinance on way better terms changing from a highly leveraged organization to a low leveraged one. Also their Service and Training centres are now gaining momentum as Covid has less of an impact. With new equipment costing a small fortune and enormous delays most construction companies are renting. The corner is turned and the SP will get more wings for sure. 5 years ago we were 65p, it may take 2 more years but it may well return to that again, the new formula clearly works when we get a positive swing of £23M per last years Loss versus this years Profit delta. GLA Long term holders.
This is now a value trap until the next results or detailed trading update. I don’t think we will get much data until 2022. Firstly We need to see the settlement that’s not even close I think, Secondly we will need another 6 months of earnings clarity. Only then will the true picture become clear. Kilted- 100% agree with your comments about Bluelight’s skitzy flip flopping. (It’s all noise and immaterial). As things stand this cannot be seen as an investment for II’s until the picture is clearer and results consistent with a level of predictability and increasing EPS every 6 months. (It’s a Hold).
Can’t explain why very little holdings from BOD members holistically, once GM has gone he can dump his shares with Director dealer publication. Regarding recent buying non events that because Director buying or selling is illegal as we are now in a “closed period”
The votes will fly through, all above 85% is my prediction. Clearly a lot of novices on the BB that have no clue how these things work. (To much hot air, speculation, impatience). The results every 6 months are the only tangibles aside a takeover bid or massive jaw breaking contract that can materially effect the SP estimated to be more than 10% per the listing rules
I wonder if we will get another tree shake today dropping the SP before close of play. Regardless of the new CEO cleaning up the balance sheets with what looks like excessive provisions, this is very undervalued and all the bad news on balance is probably in this 320p ish SP. I’m sure next week will have some positive on new customer development and hopefully stateside gaining traction. Don’t think we will ever see 1200p again in next 12 months but 600p to 700p could be a reality if the settlement closed and we get the wider spread of customers away from UK to spread the TCM more evenly.
£77m write down - II avoidance (Opaque)21 Sep 2021 08:34
The new CEO is untried, current one jumping ship when things should be getting better. My take is a lot of window dressing by GM, new CEO is kitchen sinking (cleaning up the crap on the balance sheets to worst case scenarios). Net cash should £13m plus whatever has been profitable. If it’s less then more BS (dodgy bookkeeping) going on. Its really going to be all about the numbers next week and then in another 6 months (Got to show growth and net cash increases). I’m not that confident as there are too many big sellers and no one is building any stakes, so something isn’t right it seems. Anyway ramping, de ramping and BS don’t effect the SP only audited accounts and trading updates (that have integrity) do when all is said and done. Hope it’s all solid and cash growth is better than £13m so at least we know there has been real contribution margin input past 6 months.
Whilst passenger travel normalises and hopefully the overflow sets up some nice commercial opportunities for Esken. Don’t forget they converted and grew their import / export freight part. With containers up in cost 500% and not enough capacity, many organisations needed to switch to air freight. Whilst the big bucks are in the passenger growth, the freight growth should be helpful to generate more income and slow the cash burn. Let’s hope we get a break (T5) is IAG’s hub, how about Virgin make Southend their hub. :)
New CEO has done what all smart needs leaders do, he has kitchen sinked the numbers to worst case scenarios. In turn knocking the SP lower. He will then negotiate option on share price growth and start recovering the business and SP. He is putting the company in danger of a low ball take out. You’d get for about 400p right now. Purely on sentiment. Of course it’s worth more but the real world of M£A isn’t based on screaming moaning PI’s. “Undervalued”
We seem to be waking up a little towards a break out, could we ever see the heady heights of over 40p again one day. With the sit ins opening up and the digital upgrades all completed, maybe our Polish Brothers and Sisters will get into a few poor pizza nights. I think the TV sport etc is good thing as well for take outs and we just had Tennis, World Cup qual’s etc - If we can show an increase in cash generation or more openings and revenue growth with a good balance sheet this will take off like DP UK and other countries. Fingers crossed
Real estate equivalent NAV PS 77p alone. Intrinsic value must be around 100p or so now. Dividends starting up again soon per RNS. Looks pretty good, glad to invested. (Can see the Directors are starting to load up again now, another good sign).