The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
When the little-known pharma firm Redx announced plans to delist from the London Stock Exchange’s AIM market last week, it issued a familiar refrain.
“Despite completing some of the largest AIM capital raises for biotech companies in recent years, Redx is still liquidity constrained on AIM,” Jane Griffiths, chair of the board, said in a statement.
“As a result, we believe our current market valuation is not reflective of our track record or future potential and is not conducive to raising the level of capital required for our growing clinical portfolio.”
Redx is trading down nearly 93 per cent from its flotation price in 2015, not helped by the sharp fall triggered by its announcement last week. But rather than being an outlier, the tale of RedX has become an all too familiar one for London’s beleaguered bourse.
The number of firms listed on AIM has cratered 30 per cent from 1,104 to just 742 since Redx debuted in 2015. Last year alone, AIM suffered 78 cancellations and a further 15 in the opening two months of this year.
This seemed to have ramped up in recent months, as just today, London-headquartered e-therapeutics announced it was leaving the exchange for Nasdaq, citing a “lack of UK institutional interest” and “risk appetite”.
Alasdair Haynes, chief executive of challenger stock market Aquis, said: “The London stock exchange is all about winning today’s unicorns, but AIM should also be about getting growth businesses. The problem that I think they have is that their model really hasn’t changed for 30 years.”
According to data from the London Stock Exchange, just ten new firms have floated on AIM since the start of 2023.
Meanwhile, takeovers of AIM companies have jumped 75 per cent just in the last year, reaching their highest point in 12 years. Some of the 35 included the buyouts of Hotel Chocolat and asset manager Gresham House.
The London stock exchange is all about winning today’s unicorns but AIM should also be about getting growth businesses. The problem that I think they have is their model really hasn’t changed for 30 years.
Alasdair Haynes, CEO of Aquis
The numbers underscore the existential crisis currently facing London’s junior market and the challenge facing policymakers and regulators in reviving it. Like its bigger sibling, AIM has been rocked by the volatility that has shaken the public markets, but its issues run far deeper than a momentary downturn.
Cash has been flooding out of UK-focused stock funds in recent years, losing £14bn alone in 2023. This has dragged on firms at the smaller end of the market and spurred a wave of opportunistic dealmaking.
Liontrust’s Anthony Cross, who manages one of the only funds that invests in AIM companies, said that while takeovers and moving to the main market are positive developments, even those choosing to delist is “not always such a bad thing as long as existing shareholder rights are not abused”.
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D.i.r.e.c.t.o.r.s t.a.l.k i.n.t.e.r.v.i.e.w.s
updated link
https://www.***************************/tirupati-graphite-plc-a-compelling-investment-case-lontgr/4121149286
just bought in here, lots of potential and good interview.
https://www.***************************/tirupati-graphite-plc-a-compelling-investment-case-lontgr/4121149286
Just looking at the volume of shares traded on this board today. 2 very big unknown trades went through at 12.03 ish one for 140k and one for 250k. The latter showing up after the bell. Either someone is off loading some big amounts or this share price is being pushed down to fill some big orders.
Interesting podcast.
https://www.roadtoautonomy.com/in-cabin-sensing-technology/
And growing..
https://x.com/seeingmachines/status/1710142918466371873?s=46&t=fPwXLZqUHwaWqcX7TBDtkg
F price chart (weekly) (TradingView)
Interestingly, F's $11 critical support level has held firmly despite the negative pessimism fanned by the financial media. Furthermore, I highlighted that F has outperformed the S&P 500 since my previous update.
As such, buying sentiments have remained remarkably robust on F, indicating dip-buyers' confidence about F's valuation at the current levels. Seeking Alpha Quant assigned Ford stock a "B+" valuation grade, suggesting it's relatively attractive compared to its sector peers at the current levels.
That said, I urge buyers to allocate their capital wisely, spreading it out over time, given the current uncertainties, taking advantage of the potential downswings to load up at more attractive valuations.
Rating: Maintain Buy.
Ford Motor Company (NYSE:F) investors who decided to add more exposure in early August (based on my previous update) haven't been hurt. I updated F holders well before the UAW decided to commence its historic strike against the Detroit three: Ford, General Motors (GM), and Stellantis (STLA) in September.
As such, F investors have outperformed the S&P 500 (SP500) since then, suggesting market operators have likely reflected significant pessimism. While I acknowledge that the UAW's decision to strike is a highly significant event, as it upended the pre-strike negotiations, Ford could still emerge with less damage than its peers.
Accordingly, Ford seems to have made more constructive progress with UAW as auto workers expanded their strikes against General Motors and Stellantis. However, Ford investors shouldn't jump to a premature conclusion of a favorable outcome despite the recent progress.
Furthermore, Ford could be more exposed than its peers to UAW demands if UAW President Shawn Fain decides to add more pressure on Ford, as he was upset about the company's decision to pause construction on its $3.5B battery plant. Fain stressed the decision as a "threatening tactic to cut jobs, accusing Ford of not supporting a just transition to electric vehicles."
Despite that, Ford's "better relationship" with the UAW could be a critical factor supporting favorable buying sentiments on F, corroborated by the union's decision not to escalate the labor unrest against CEO Jim Farley and his team. However, with Ford's UAW-linked workforce accounting for about 33% of its total U.S. workforce, the company needs to tread water carefully, given the significant demands from the union.
Tesla (TSLA) CEO Elon Musk indicated bluntly in a recent X post, highlighting the unsustainability of UAW's demands for a "40% pay raise *and* a 32-hour workweek." He believes it's a "sure way to drive GM, Ford, and Chrysler bankrupt in the fast lane."
While the union has reportedly curtailed its pay raise demands from 40% to 36%, it would still be a substantial increase that could be detrimental to Ford's bottom line and EV transition ambitions.
Notwithstanding these challenges, analysts have likely reflected adjusted EBIT headwinds, given the ongoing spat. Accordingly, Ford's automotive adjusted EBIT is estimated to fall by nearly 9% in FY24 before a sharp recovery of 15.3% in FY25.
As such, it seems likely that Wall Street expects Ford's medium-term profitability to remain sound, suggesting a temporary blip in its transition efforts. However, the fluidity of the negotiations with the UAW leadership during the historic strike is expected to keep momentum investors at bay.
Hence, dip buyers considering adding more exposure to F at the current levels must be prepared to hang on tight or even average down if necessary, anticipating downside volatility.
F price chart (weekly) (TradingView)
Interestingly, F's $11 critical support level has held firmly despite the negative
So the Seye guy is selling and our guy is buying does this not just cut through the butter. I know which side I’d prefer my butter on.
950,000
Apologies it’s the other way round.
Are we involved with VW, if so what’s been agreed in the pipeline.
Just to add to this 1.2m shares are sold in the last 4 showing transactions and there is a possibility that could be buys. Seems dodgy to me.
So in todays world of AI the algorithm is useless so what’s the point of displaying this data. Seems crazy to my logic but I am premature when it comes to understanding this side of investing.
Thought I’d top up some more shares this morning but my buy is showing as a sell. This doesn’t give much confidence when trying to read buy and sell trades. Does this happen often ?
Can you tell me what the difference is between the partnership with Cipia and Mobileye to SM and Mobileye please.