Member Info for NickE

I'd say the obvious contenders for the anticipated contracts would be DHL and the Container 42 group / Port of Rotterdam. Can't rule out contracts associated with the Russian Railroad project though. The only geographical information we have, at least for one or two of the contract discussions, is U.S. and South America.

I think it's too coincidental for Starcom to reveal the new name is t42 and not be involved in the Container 42 project. Just getting a contract or being a partner in the projects with this group alone with the likes of IBM and Cisco as partners will be transformational. Starcom are clearly looking ahead or have responded to contract opportunities / overtures as it will be a new era for shipping containers and the technology will even eventually cater for autonomous vessels / freight.

https://www.xyht.com/spatial-itgis/container-42-so-smart-it-knows-all-the-answers/

I suspect Starcom / t42 will be taken over at some stage by a larger group.

Great find and more information on container 42 is here under the heading"the smartest container the planet has ever seen."

https://weare42.io/?utm_source=MTBlog&utm_campaign=Blog&utm_content

Some heavyweight companies involved in the project as well:-

https://weare42.io/partners/

I hope they select IOT as their listing ticker for the re-brand. No LSE company has it and I don't think LSE / AIM allow numbers so T42 wouldn't be an option.

The name doesn't exactly roll off the tongue but it might be all the more memorable for being a bit quirky. Anyway, that's not the important thing. The crucial thing is T42 IOT will, I assume, be designated a 'Software and Computer Services' company and gain a rating that is fitting for that sector, whereas good old Starcom was stuck in the doldrums with a m/cap of little more than 1.5 tor 2 times revenues in the Technology Hardware and Equipment sector.

They didn't waste time with the name change and rebranding so I am sure the chunky contracts that inspired the rebranding will follow reasonably soon. Exciting times and there is a huge demand for high growth SaaS companies, so it will be interesting to see if STAR management will stay the distance and build or sell for a significant premium as they did with Pilat Media to a bigger player.

The re-branding is both sensible and imo indicative that STAR anticipate SaaS revenues are set for strong growth.

I'm not sure how different multiples are in the UK compared to the U.S., but the median multiple for ARR (annual recurring revenues) for publicly listed U.S. SaaS companies was 16.6 in 2020. On that basis, it wouldn't be too much of a leap of faith to see STAR as a £30m to £50 m/cap company on the back of decent contracts and anticipated good SaaS revenue growth.

https://www.kalungi.com/blog/saas-valuations

There are of course lots of variations for the multiples depending on the sector, profitability status etc. etc. and profitable small caps with decent growth will obviously get a higher multiple applied as the Jim Slater adage, 'elephants don't gallop', applies. Some analysts appear to prefer to use MRR (monthly recurring revenues) as the basis for applying multiples.

The bottom line is that if STAR rebrands as a SaaS company on the back of one or two long-term lucrative contracts that highlight future growth and a move towards profitability, then the Company is set for a substantive re-rating.

Star have always promised but never quite secured that elusive blockbuster contract or captured the imagination of tech investors. The latter is a bit surprising given existing management past success with Pilat Technologies , their ability to develop quality high tech products with minimal cash burn and the low ratio of revenues including SaaS revenues to m/cap. Their pr and, frankly, at times, poor presentation skills haven't helped.

I just get the feeling, however, that this uplift is the start , at long last, of a sustained re-rating but they will have to deliver on one or more of the flagged up contracts for the impetus to gather pace. Given they seem pretty certain about rebranding and the 35% premium to the placing then maybe these contracts are in the bag. It's a bit of a leap of faith to think that given past disappointments but I am minded to think this time they are going to deliver.

Ideally DHL will be one of the parties they are in contract talks with based on the competitive and prestigious DHL competition win and the July rns announcing that DHL were trialling Lokies in Singapore.

The case for a substantially higher share price is far from baseless bloodninja.

Market cap £1.8m but MAC has a (conservatively estimated) £4m nav based on the below.

The Company now has Luke Johnson on board so both his business acumen and name should bring more deal flow.

If Future Biogas does IPO does proceed this autumn, and my understanding after inquiring about participating in the funding is that it probably will, then MAC could be looking at a substantively valuable holding in this Company in relation the the current m/cap. Could it be another high % stake post funding just like WLL?

A share price of 4p to 5p would reflect the current assets then add on a premium for the business model that accrues stakes in good companies without dilution. Add in a premium for having Luke Johnson on board such a microcap.

Also, I anticipate that WLL will follow the same path as Cornish Lithium (currently valued at £80m). I would imagine the low priced warrants will prevent dilution as WLL will need more funds to reach that kind of valuation. In fact if MAC are involved in future fundings the stake could potentially increase. My understanding from public domain info is that WLL is a year or two behind Cornish Lithium. The 8.7 % holding in WLL would then be worth circa £7m to MAC. CL of course had a recent £6m funding that sold out in 20 minutes.

Cash circa £400,000
WLL value £1.5m. (potential to have a multifold if, as envisaged, it follows the same path as Cornish Lithium)
Burgh Hotel. circa £800,000
Warrants value for all holdings?
Future Biogas stake value? Due to IPO this autumn
Fast2fibre stake value?
Various hospitality holdings value?
Pipeline deal flow value?

Well, it's excellent news and the shares will be in sticky hands. Also, at least now that gives some context to why the shares had 'coincidental' brakes applied with some, at the time, inexplicable sales, but the funds will be useful and no doubt Luke Johnson sees significant upside from here.

I think we will see an Autumn IPO . Tennyson / Shard Capital are the brokers.

MAC is substantially under nav now with the WLL stake alone matching the MAC m/cap. Then there are warrants for a variety of holdings, stakes in the Burgh Hotel, Future Biogas (likely autumn IPO) , Fast2Fibre , 3 other IPO's / trade exits flagged up. I think the board could / should be more expansive and hopefully they will give more details on the lithium stake which underpins the m/cap by itself and is an exciting prospect that can cater for high demand in the area given the high tech battery / electric car plants coming to the north east.

I wonder who the seller is? Seems to have a decent supply. Not you is it Baz?

Agreed bloodninja, there will be volatility and spikes but these should be more sustainable given the newsflow will have substance and a realisation that MAC is increasing its nav and focusing on the green energy sector. The last two spikes have been deflated by Chris Akers pulling out and the director sale. Two 'one-offs' so future significant uplifts should be more sustainable and, really will just be correcting the discount to nav and reflecting the new emphasis on the green energy sector..

Currently, the recent £1.5m + warrants / 8.7% lithium investment stake in Weardale Lithium ltd (WLL) acquired without cost or dilution nearly covers the market cap. Future Biogas plans to list with a £60m valuation with an up to £35m fund raise. Marechale are listed as having an advisory capacity with Cairn Financial taking the lead for the IPO. I assume MAC have prepared the way and are helping with the funding from their client list. I'm not sure what % stake plus warrants MAC will have in Future Biogas but, once listed, the value will be clear and it should be material.

Additionally there is the Fast2Fibre investment with 10% holder, Baz, highlighting they could go for an IPO on the back of a potentially lucrative German contract. That would be another of the four alluded to by MAC in the results for an IPO or trade exit.

On top of that there is the 4% stake plus warrants in the Burgh Hotel which could be worth £800,000 plus the value of the warrants based on a £20m hotel valuation that has had multi-million pound renovations. Best bet would be a trade exit for that one given the increasing emphasis on the green energy sector.

I suspect the strong pipeline MAC have referenced will focus on the green / renewables / net carbon sector. There seems to be a move away from pubs and hospitality and a trade exit for the Burgh Hotel will highlight that as a switch in focus. There should be an increasing number of clients in the renewable sector as well who will look towards MAC for their services and to tap into their high net worth list of investors.

So lots of news for patient holders to await and clearly a substantially higher nav than the market cap - a nav that is set to rise once the IPO's and exits materialise. MAC seem to like to operate under the radar and no doubt being discreet and cautious appeals to their network of high net worth investors.

I'd like to see them be a bit more expansive though. For example, there has been little detail of the potential resources WLL has acquired. For a £19m valuation they will certainly have good prospects. I believe WLL is about a year or two behind Cornish Lithium in its development and the latter is valued at £80m.

Still four IPO / exits to go ninja. WLL wouldn't have come under IPO or trade exit. Maybe in three years time though.

The funding document for Weardale Lithium Ltd suggests it is a year or so behind Cornish Lithium (probably 18 months to be realistic) who are valued at £80m. That suggest that WLL will be worth 7p plus a share excluding the warrants MAC hold over them.

MAC have other Weardale Lithium's on their books too. Future biogas - the biggest biogas producer in the UK and currently looking to raise around £35m and no doubt MAC are involved in that as advisors. How much will that be worth ... another initial £1.5m ?

Then there is fast2fibre which has patented technology for fire optics infrastructure that needs replacing on a large scale. Apparently they are in the frame for a large contract in Germany.

Then there is the 4% stake in the Burgh Hotel which has had multi million renovations. Perhaps a trade exit there unless they plan to list and, with low priced warrants exercised, perhaps another £800,000 to £1m to add to the balance sheet.

Over time I expect to see MAC trading in the 10p to 20p range. That's just based on the above and excludes the strong pipeline of investments they alluded to in the recent set of results. Early stage with the impending listing of Future Biogas then maybe 5p to 6p.

The market has yet to cotton on to the fact that MAC has been picking up stakes in the renewable / green energy sector for zero cost, zero dilution in exchange for its advisory services and will continue to repeat this business model with its pipeline..

Market yet to cotton on that MAC have a £1.5m lithium stake in for free.

Market cap £1.6m . 8.7% stake in Weardale Lithium (WLL). These are founder shares and just based on the funding round and you'd expect the value of WLL to be at a premium to funds raised. Cornish Lithium did a crowd funding at an £80m valuation and the £6m target was raised in 15 minutes. It's a hot sector.

Last month MAC flagged up four IPO's / trade exits anticipated within the next 3 to 18 months so I wonder if they are clearing the decks for a RTO by WLL or it's just a good business model where they select companies ripe for future IPO / trade exits. Either way, MAC looks significantly under-valued.

Minoan should have a decent move up tomorrow so, with the greatest of respect, I think this is the 'Fact' you were grasping for:-

https://www.independent.co.uk/sport/football/premier-league/arsenal-bottom-of-the-premier-league-after-stunning-defeat-by-west-ham-10447480.html

Excellent news Bigwil and thanks for posting.

The Cavo Sidero project can be classified as a 'strategic investment' under the criteria of this new legislation. It's an environmentally friendly project and fits all the other criteria. That means MIN should be able to attract additional and significant interest.

The new Greek Govt package is full of incentives including full tax breaks that are game changing for overseas investors in Greece and of course , more importantly here, Min's project. I see this as being the catalyst for the end game now and at an absurdly 5.9m m/cap in relation to a consistent (over the years) nav of 47m euros then the risk/reward is enticing.

I expect to see a renewed demand for the shares when markets re-open this coming week now that this draft legislation has been published. Ultimately, I think the share price range on successful conclusion and an offer for MIN or its subsidiary, Loyalward, ranges from an ultra conservative 3p a share to a perhaps over optimistic 10p. As I say, a highly enticing risk/reward.

They can report larger buys and sells late, sometimes days later. In this instance it would have been a worked buy or sell with a limit price and filled or partly filled by close hence the after hours time.

My guess is it was a buy but if it was a sell it was a good price and highlights an earlier post that said the 100 share trades indicate they mm's want shares. As I say, these things are interesting but for me a side show to the main story.

Looks as if someone put in a limit order and got filled at 1.902 with 2,133,723 shares by close.

noworever, there were several 100 share trades throughout the day. Some traders think they are meaningful signal just like a 1 trade is supposed to be. I'd tend to ignore them as just as it could be a signal it could be a trader wanting to create an impression it is a news signal. Much better to just do your research and ignore the white noise of bulletin boards and things like supposed signals. That said (just to contradict myself!) there were quite a few 100 share trades and other small trades today which is unusual. Fingers crossed for good news soon.

Pokerchips, that's interesting about IMM and it has failed a couple of times now in trials. I'll take another look but last time gave it a wide berth. There were one or two pharma gurus who said the science didn't stack up. They were right last time so I'd suggest its history and perhaps chance of success is responsible for the valuation. Sometimes these things can create opportunities... once bitten etc. I'd say it sounds very high risk but without looking at how it has been revised then that's just an instinctive reaction.

Yes, I think twitter beings out a lot of one line deramping and ramping alike. Your views are always considered with supporting facts which is always good to see. Timing and sentiment is everything and I think inevitably with something like MXC the ramping crew will get in short-term. I've usually done okay when I've got in ahead of the herd especially when the prospects for a headline grabbing trial result such as MXC have are there.

The one thing that put me off MXC was the CLN's but I've taken the view that firstly, the share price might have formeda base and, secondly, even CLN's become meaningless if a successful trial result on Covid is announced and that brings new investor focus and some credibility to the other trials. I don't think they could have picked more publicity generating applications than Covid, brain cancer, Alzheimer's and dementia.

We will see and good luck in your investments as well. I quite like the look of Evgen Pharma as they are fully funded for a bit but I can't see to much to drive the stock forward for a bit aside from a private investor taking a sizeable stake.

Good post shandypants and thanks for sharing. The information should be in the annual report in due course but it's poor if they don't share or reply properly.

BRSD is on my watchlist as potentially it looks like a high growth stock. I believe Justin Waite, who does pretty well with the small caps was interested but he seems to have moved on. Perhaps he found management a bit too reticent to engage as well.

The CEO seems to be bullish and willing to do media interviews so he should realise small cap shares rely on retail investors so good communication goes hand in hand with a healthy share price. I was in a (very) small cap (Starcom) and the FD was disinterested in their AGM slumped in his chair and playing on his phone. I sold - the Company may do very well going forward but I place a lot of weight in how directors engage with their shareholders.

Potentially, it does look like BRSD revenues could grow very quickly. It doesn't bother me that the Company invariably can't give the name of a client just as long as they update with the value and some information about the size of the client and the sector.

As I say, I like the look of BRSD and may invest when I can free up cash from other investments but outstanding low priced warrants can be a drag on the share price so I'll take a look to see how may are around and their expiry date(s).

Pokerchips, I take it you are risk free of Covid? :-) Sorry that was literally below the belt.

It's none of my business but I guess you must have lost money on the stock. We all have had a few of those with wrong timing or wrong decision making but, in my case, I just move on or, on occasions, average down. You seem to have an engrained negative slant and spend a fair amount of time posting on a Company where you seemingly have no financial interest. Welcome to the world where pharmas use cash. Some soar and some crash but it is invariably on their results in clinical trials as opposed to cash burn - within reason. Just as oil stocks crash when they fail to strike after a drill.

You seem smart enough so I assume you know that already but, for whatever reason, you are trying to assess a pharma in the same manner as someone would for a engineering generic widget making company with (unlike MXC) no prospect of high growth or a globally beneficial medical break through.

I would have been reluctant to invest at the 8p dizzy heights, primarily because I try it get in a what I perceive to be ground floor levels. £50m m/cap for a pharma company that has advanced clinical trials for high value market sectors seems far too cheap and I expect the anomaly to be rectified as the phase 3 clinical trial progresses. It will attract a lot of short(ish) term investors.

Regarding profitability it's a little early.

Because MXC is revenue producing there seems to be a lack of recognition that the Company has a substantive pharma element to it. Pharma plays are valued very differently. I think pokerchips is mistaking MXC for some pure generic healthy living / nutritional products play.

Synairgen, for example, has a phase 2 trial relating to Covid and has a £300m plu sm/cap and lost circa £14m last financial year.

MXC has a phase 3 Covid related trial with results in the Autumn. It has clinical trials for brain cancer, dementia and Alzheiner's Disease. Yet the m/cap is a shade over £50m.

In many ways MCX is much safer and attractive than a pure pharma play because it is selling products and increasing revenues. The CEO recently anticipated CimetrA being on sale this year which should boost revenues and progress towards profitability significantly. A significant amount of the work that will enhance revenues is grant funded has been pointed out in earlier posts.

The main point though is that MXC has pharma trials in areas with substantive market size and where new therapies are much needed such as brain cancer where the current treatments are very limited. Ironically, perhaps if MCX were a pure pharma with heavy losses and without other revenue strings to its bow it would get the premium values that others pharmas do.

The m/cap looks seems somewhat of a misnomer when you look at the Company in that context. I think this low valuation anomaly will be corrected if the Covid phase 3 trials are successful and pharmas often have a run up in the share price prior to clinical trial results. Not long to wait (in pharma timescales it's like the blink of an eye) and I'm anticipating a good run up as the phase 3 trial get close to completion and the results are released. There should be plenty of other newsflow as well.