The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
There are two reasons why the company is valued at much less than it was not long ago. The first is outside its control - general economic conditions. The second is because it has been disappointingly slow to turn product into sales; that's undeniable. But no company at this stage has ever, ever been valued on sales - it is valued on its IP and its potential. The upshot of this is that because of the general conditions a much lower price is put on that potential than might be the case in other circumstances. If a fraction of the perceived (yes, its's perceived rather than actual) then it may be worth multiples of its current value. Nobody knows for sure but if you wish to value a company by traditional metrics then if you really are researching AIM then you are looking in the wrong place.
The company is in the latter stages of R&D with a clear path to commercialisation. Since when has a company at any stage of R&D based salaries purely on revenue? The pints you are making, Mr Sponge, are nonsense and smack either of deramping or a complete lack of knowledge
With building work suspended on HS2 Euston I wonder whether Mace/Dragados will shift 'their' power tower elsewhere?
The Times:
Mark Harper, the transport secretary, said this month that soaring inflation had forced a rethink of the £100 billion high-speed rail line’s timetable. There is to be a two-year pause on building at Euston. HS2 Ltd, which is overseeing the project, has spent £548 million on extending the station and has a budget of £2.6 billion to complete the work. Its most recent estimate of the cost was £4.8 billion.
Due to the regulations, part of Mifid 2, which prevent 'free' research being issued small companies are all but in visible to institutional investors. This development may help.
https://www.gov.uk/government/news/new-chair-appointed-to-drive-forward-edinburgh-reforms-investment-research-review