RE: Trading update8 Aug 2023 08:38
Over the company’s history there have been events that have temporarily inflated the price. Dow, Apple, Samsung being the main drivers. In these events there’s always a proportion of investors speculating on opportunity, building a position in advance of the good news. (Of course there are others who invest after who are aggrieved when it doesn't materialise ( See Down/Apple/Samsung) and are left with a high average which is understandably frustrating.
For me Nanoco has never been about these binary events, for me it is about profit and revenue. The share price is depressed in my opinion by a combination of factors:
1. People have become more aware of Nanoco’s glidepath and are no longer speculating as before – the rumour mill is quiet and Samsung is in the past and many sold after the ‘disappointment’. The Samsung outcome in my mind at $150m is not insignificant and should be seen for what it was, a sensible outcome delivered versus an uncertain one ‘sometime’ in the future. Trading volumes are very supressed of late.
2. There is an element of distrust in The BoD and its mainly coming from people who are vocal which doesn’t help sentiment for new investors or indeed existing holders - TH plus the band of merry followers on here (and ADVFN who are the same people, who ironically are the ones complaining about multiple ID’s----you couldn’t make it up)
3. New investment is unlikely until there is solid news and a satisfactory outcome to recent events. NB If the materials don't achieve 'validation' then all bets are off but I personally doubt that will be the case particularly with the backdrop we have and todays update.
4. EPS
Microsoft and Apple haven’t built a massive market cap based entirely on speculation on new product releases and as time goes on even, they have less and less impact. What matters is financial performance, accuracy of guidance and most importantly +ve EPS.
At the moment our EPS is negative and that’s not forecast to change for some time yet. Once orders come then the forward guidance on sales, revenue, costs and profits will be easier to publish whereas just now it’s more of a ‘prediction’
The board should be measured on these metrics not the outcome of a litigation battle. Product development, sales, cost control, profit and accuracy in guidance so you can make informed investment decisions. Until then it is still high risk and speculative. If the board miss wide of the mark they deserve to be held to the fire.
People on here will bang on about governance but they are simply the ones most disillusioned and ultimately, I believe they will be proved wrong.
Todays update is an indicator to what the company considers to be a growing market they can participate in with its unique IP. Invest if you want to be part of that journey. Otherwise don’t.
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