The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Some big issues to think about:
1) As you say commercialisation has been very weak and I haven't seen them expand their sales team recently
2) These are test results that they had already "beta" confirmed in July, there should be sales in the pipeline already
3) Now with a vaccine out, there is going to be a lot less demand for anti-viral gloves primarily because the next virus could well be very different, so why buy them for a virus we now have a vaccine for in the coming 3-6mo?
4) They missed the boat, look at Novacyt, huge government orders and perfectly delivered on time, still have not seen £1 accretive to SYM's business since these announcements began
My view is they will have some long term value but at 20+ its a shot in the dark now. So many companies have come in and delivered and they are still waiting for a go.
It is so misleading and really gives little information about what they are actually doing. Firstly they make it seem as if they have distribution in the USA but read carefully they have access to the "whole of America south of the border between the USA and Mexico"....don't those two countries border??
On top, they have 1.6% of the equity holding, so even on the financing side they are worth a paltry 96k!
They keep sending RNSs that fail to meet expectations on the quantitative side.
Losing steam here. Market might react positively today but like recent news it's almost irrelevant
Having been a long time shareholder, i decided this week that the SP is unlikely to see much better than we have done recently. So much has been said about the products and potential for commercial contracts but the last two RNSs only improve the potential, there seems to be little by way of legitimate pipeline to protect the SP as it stands. Furthermore, so many new companies I had never heard of have come to market with bio protective compounds (Byotrol to name one), so competition is heating up and their history sadly has not made me feel confident. Technically speaking, we were unable to close the highs we saw in 2018 around the 30+ cash price, so again MMs are using that to slowly take the bid/offer down.
Overall, as much as I think they are doing something worthwhile for society, this is no longer a share that provides the upside it did at the start of the year and hence I have after almost 5 yrs reduced my holding almost entirely.
DYOR and GL!
Even as a long term holder, I have started to trim in the 28-30 zone because these headlines did not release any figures around it. They may well get commercial over time but two RNS and no information on how it impacts the bottom line. Unfortunately tells me for now these are either 1) too small contracts 2) at a stage where material revenues are unlikely
This is nothing to do with the presentation, a good old fashioned dealer squeeze on a day when markets are not holding up very well. No matter how dull the presentation might have been 1) it gave access to them for the first time in a public forum 2) they actually gave evidence of their pipeline and FDA metrics 3) semi-promised commercial viability over coming weeks/months
Weakness on the back of that is purely dealer driven, don't think otherwise. If we are here in Christmas and still have not seen an order then I would be worried, but I doubt this AIM market full of short term retail punters that want a ten bagger in as many days have the ability to disseminate information over the weekend....
Dealers winning here, nobody else.
Can you imagine tomorrow being the RNS day and we see contract pipeline, strong post covid sales in D2W (which people have completely forgotten about) + Eurofins report......
Not saying it happens tomorrow but the thought process is the same, the same sellers at 30% down will be scrambling for the same shares at 30+...being a MM is v lucrative and they will be reading these chats to get a sense of market sentiment.
They clearly stated results would be due in September, so we still have 20 days left......once we get no information at that point is the time to start worrying a little, although i don't think that is likely to happen. I just feel like trying to guess every day when they will announce something is futile, market makers are evidently preying on that mentality as they squeeze the bid down and force tiny trades at levels that make it look like their lower markets are actually trading flow, when in fact they are just getting their hands on paper cheaply.
I feel like this board needs to take a break until we see an actual RNS from them.
I have been a holder of SYM for some time and whilst everyone is entitled to an opinion, the amount of impatience here is staggering. Yes they announced just under two months ago strong news with regards to bovine covid, but they specifically said this was released prior to the Eurofins final report (albeit no change expected). Eurofins is based on the continent and having worked in trading most of my career i can tell you Europeans do not work July and August, ever! So just on that premise one should have expected Sep to be the earliest for the final report.
In terms of contracts, i am sure they are having discussions but i cant imagine anyone penning a deal without seeing the final report themselves.
I agree they have in the past missed opportunities so proof will be in the pudding for sure. Nonetheless, i think this technology has much more going for it as it doesn't have resistance like D2W tech which is lobbied hard. The reality is if they were able to sell 500k worth of gloves in a single quarter of trading before this news, that number should be multiples of that going forward. A company with this type of upside and trading at 5x revenue is cheap in this environment.
DYOR but don't be hasty.
They have been around for a very long time, their overheads are not high and ultimately has very little leverage so not being hurt like other companies with large debt piles. Payment disruption could slow the price appreciation down a little but i highly doubt they supply product without getting paid. For health products people are forking out the cash, its the consumer discretionary spending which is being hurt
I have been following these threads for a few days and as a holder since 2016 it is interesting to see the amount of speculation on the name. For the better part of 20 years the firm spent all residual cash to reinvest into the R&D process, with the core trade being D2W not D2P. The reality is that D2W will unlikely get global traction anytime soon (given scientific burden of proof and lobbying from plastic manufacturers) whilst D2P is symbiotic and hugely in line with the hygiene wave we are seeing due to Covid-19. This was by no design of the company but purely being right place, right time (bear in mind they barely make anything from this product range and is very rarely mentioned in past advertisements vs D2W). Now, they have got FDA approval and the reality is they need to grow up fast to win mandates. The US is a huge opportunity but it also takes no prisoners, if they fail in their first/2nd/3rd pitch the game is over, so i sincerely hope they have the right people in front of the right audience.
Assuming they actually win a contract, the upside is incredible and i don't think even a 100p valuation does it justice, given the size of the food packaging market ~ at USD 35bn even a 0.1% penetration equates to 35mm in gross revenues, which at 100p is still only trading at a 185mm market cap vs 40-50mm total gross revenues ie a 3-4x sales multiple which could easily expand to 5-7x if the future growth gains momentum.
Flip side is they fail to secure any major contracts and the stock languishes back down to 10-15p (the FV is higher given FDA approval)
All in, the timing of this win is going to be longer than people think, and if it happens faster that is just a bonus, but the reality is the FDA approval means very little to the bottom line just yet but the hope is keeping this trading higher for now.
When you say don't need to know, is that because you already know or prefer to assume and not know the facts? And to be clear there is a huge difference between particles, slime and chemicals, although not really sure what particles refer but assume you mean "biomass". Everything in the world is constructed of molecules, simple and complex. Complex molecules are in plastics, metals, synthetics and are the trouble as they do not degrade due to environment but simple molecules do, and just like humans eating food, these simple molecules provide sustinence for all microorganisms that in turn create the basis of life on earth. SYM have tested and proven the ability to turn plastic from a complex to a simple molecule and hence become a food source for microorganisms. The EU ban is purely political (on top of the fact that they have never been known to do anything first, hence the lack of technology and productivity on the continent) and serves the interest of larger companies that fear the introduction of such a technology. So to rebuttal your comment, it actually does belong on this planet because counter to your point it does turn into a food source and form part of the chain. Again, if you read my comment below you will understand that SYM are arguing this as the final solution not the first, and given how little plastic consumption is/will go down how does it make even an ounce of sense to ban the only viable alternative to zero-degrading plastic?
I will ask one question, what scientific evidence do you have that this fragments into microplastics? If you can show me that on this blog will happily sell my holding tomorrow morning. If not, then like the EU you are blanket banning a product that has always (especially by SYM) been touted as the best final solution because let's face it, you are lying to the world if you tell me you have done even a modicum of good by changing your plastic habits. If you have used a computer, phone or tablet to write this message you've basically created the entire plastic lifecycle in one place.