Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Jakel that doesn't tell anything about the placing - the 500k (subject to EIS) is already committed at 28p, and as I understand it - outstanding. So, presuming that EIS is still available, I don't quite understand why this points to entirely new placing to you.
Can't even count properly - 5.4m / 6 is 900k per month not 850 - close enough though ;)
Hi Dwall,
Good points. If they've ended the period with 2.8m in cash (incl 1.4m tax cred) that means they've had - 5.2m at year end plus 1.4m tax cred + 1.6m revenue
That's 8.2m - left with 2.8 m at period end - 5.4m outgoings / 6 monhts - circa 850k - like they've said previously.
Now they've reduced this to 630k (from july) - which will be about £3.78m costs - with cash reserve of 2.8m they only need £1m revenue to be covered for cash call until end of year - which should be a doodle.
a £4m revenue in 2h18 should make them profitable (for the second half) and it still will be far cry from a minimum £7m for directors bonuses let alone predicted £10m by the broker.
Hopefully this year...is THE year. At the very least we are not due any placing (famous last words).
Hi Dwall,
To be fair - I do agree with you there to a point.
Specifically about liquidity and existing holders being able to influence the price if only for a short time. I, specifically, in the past when I was buying, I've had to do it in small chunks (on IG at least) and had to make like 5-10 transactions to buy let's say £30k worth. With each transaction a price went up...if only by small amount - but still the last 2 (illlustrative example don't exactly remember specifics) - were like 20-30% higher price than initial ones - especially if everything was done over the course of a single day or two. It goes without saying that applies to selling two....sometimes even more so.
Having said that - it's certainly possible for individuals to manipulate the price at least (very) short term. Now....to maintain artifically long prices over the longer term, I think it would take substantial amount of synchronization and resources to get there...and stay there.
Not saying it can't be done - probably can but I can't come up with the maths, that would actually benefit the manipulators - if you add up all transactions...fees....sold at a loss / bought at higher price (effectively a loss too) - can't see anyone coming on top off that ultimately. The only "use case" of such thing on AIM (i.e. very small companies) would be in advance of the placing (as we know Cyan is almost always in advance of the placing ;))) ) - to make sure that placing goes at ridiculously low price, then participate in it with maximum possible resources or take advantage of stuff like EIE etc.
It's a big risk though - even bigger if the news come out of the blue and screw over your intricately laid plans. Plus obvoiusly you would have to gather your pals, coordinate everything etc. I just can't see the benefit to risk ratio being positive here.
On the other hand....brokers themselves (like IG) if they do offer such piddler to trade which is rare - would really touch it with the barge pole if I was to believe my account manager. It's precisely because of liquidity...collateral....and maybe just the fact that the price can be influenced by the individual (As you just pointed out) - which can go against the broker. But ultimately it's too small amount of money involved to waste time on this for the MMs. And you obviously can't short directly so can't swing both ways. ;)
"Total Annual Remuneration"?
Sorry but how did you come up with that numbers ITT?
I won't even comment on the "bonus / back pay" stuff.
But from the RNS the total package for the whole year is 240k which is 170k salary plus 70k bonus IN SHARES if they achieve £7m revenue. That to me suggest the 70k in shares is actually conditional bonus upon meeting revenue target.
So what's with the dates on your post? 01/01/18 - 30/06/18?
Re the revenue "expectations" etc....the £10m figure was a number from Finncap analysis hence the "expectation". Now - there are expectations and there are thresholds for renumeration - both are different.
In any case if they achieve £7m this year I'll be happy as Larry, although as someone said 400k to those two directors is............over 5% - which is still extraordinarily high. It's as if the CEO of the company I work work got over £5m a year....nope - he gets 440k - and that's with bonuses etc on revenue of £110m :/
So of course they have been taking the **** with the remuneration over the last few years.
Thanks very much for the comments emptyend.
Tony.... ...not sure if serious....^.^
Hi Guys, I just need to make a point there regarding "short positions" which are alluded to by some people sometimes. Guys - I can tell you with 100% certainty - you can not short this share. I have most of my positions in Cyan at IG which is spd / cfd provider and also the biggest...and spoke to my account manager specifically about this....and he laughed into my face so hard I felt really sheepish to ask that question as a professional client. The gist of it is - no broker / provider with more than 2 ounces of brain will allow to short company like this. Firstly - because there is almost no liquidity....and even with spread bets they wouldn't be able to hedge. All brokers that actually do deal with this share (or shares of such small size companies) on a leveraged basis they have them classed as "unborrowable" - which means you can only open long posittions on CFD / SPD but not short ones. Not too mention that 90% of providers don't even touch companies like Cyan. In terms of brokers themselves "shorting" that's also not true (also confirmed by my account manager) - brokers don't have people sitting at the desks fishing for share of AIM piddlers worth £10m and physically trading them between themselves. That's not how it works - all "shorting" between providers is done on an automated algorithmic basis, and you need both liquidity and certain other criteria fullfilled before systems picks up a share for shorting (especially ones from outside of main markets). If that happens you'll see lots of automated trades in Cyan - and I don't think you can find even one automated trade on CC - ever. (exceptions might be some market orders but those happen very rarely) Bottom line - you can't short this, and saying that "short positions are closing" is just incorrect - sorry Dwall. Not to mention that if you could it would be extremely easy to make money on just about every AIM share right? Contrary to main markets those go down at least 10 times as many times as they go up.
I don't make things up Tony ;)
12.50 - 13.00 pence (O.o)
8:57:42 55750 for 10.75 that's physical shares and also another 500pp on IG markets few minutes later - whether it shows immediately on trades or not...I'm not sure as cfd / spd brokers buy aggregates - or don't hedge at all small amounts.
Something is definitely brewing - we are at 11.50-12.00 now and creeiping up.... that's 30% up in 1 day for no reason at all - apart from AGM happening with no results RNS to boot.
..in auction fro last 20 minutes or so.
I see...thanks for clarification LTI. ITT, thanks - it does sound even more interesting now.
There you go ITT, you actually can come up with something else than doom and gloom ;))) Way to go.... Sorry couldn't resist ;))) Not sue if that can be a possible scenario but does sound plausible - any accountants here that can shed a light on this possibility?
Still I wonder what was the "very good news from Ukraine" snippet let out by Harry Berry.... Going from memory NIK was the one that made a $29m order for Ukraine, than didn't take the delivery of 100k meters which caused £2m shortfall. Now do we have anything else involved in Ukraine - I don't believe that all of a sudden NIK has turned tables - they only said that they've redistributed their meters back to India.
It'll be a massive error than.....and a very deceiving one :/ Let's hope it's not the case - as I have my doubts now as well ;)
Hi Vas, The only way it could be if it's not a mix up, that it might be from a licensing deal rather than revenue itself - but why no announcement to that note. Puzzled now...
Thank you.