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Unfortunately can see the shares dropping further prior to 10th. There’s complete nerves out there about this company and little support from analysts.
SMS is too strong a character for the City and I don’t think they know what to think about SFOR’s future.
Sadly, if this drops back to 38p prior to 10th I would unfortunately not be surprised. Just look - there’s no support, no matter what the rest of the market is doing.
I think the simple reality is that it is very hard to take a more definitive view of the recent price drop when you look at the trading turnover on a daily basis. If there's under 100,000 shares traded per day yet it falls by several pence, then one has to ask how real these prices are. I suspect that if I was to approach the market on Tuesday morning and try to buy a large amount of shares - say 5m - then the price would rocket to 50p+ pretty quickly.
Marketmakers are over dropping the stock because of the automated trading in this share. You will note now for several days running there have been spates of AT trades [automatic trades between marketmakers] - these have destabilised the price and have not been matched by Ordinary type buys.
I don't think there's actually any proper reason then for the drop, it is market led, so the price can rise back up pretty fast as well. It appears to all be orchestrated......or should I say manipulated......
Who thought this sort of thing was not allowed?
You’re right about it drifting but I only have to sell 500 shares to make the price drop by a penny. This is clearly ridiculous.
The shares are currently dropping in very light turnover. In the meantime, Richard Griffiths is nowhere to be seen despite regularly topping up when the price was 70p+ recently. Why?
I think an email to investor relations is called for - surely the company is looking at its share price and getting concerned? We are now at new record lows. What is going on?
Silence from the company is going down like the share price. Investor Relations Dept - what do you have to say?
I'm spreading my proceeds in CRTA, THG, SFOR and ASC. All are at very low prices currently.
CRTA looks so interesting, anyone getting in now is in at the ground level, just before they make further quarterly announcements showing their contract wins lead to free cash flow positive status by the end of the year. I do not reckon this will stay independent much longer once they confirm the various wins. This will rocket in due course.
As for THG - well an army of you out there can confirm how cheap that one is!
As for ASC, we have Frasers [Mike Ashley] amassing a 27% stake, the current share price is on the floor, and trading is expected to improve???Am I missing something? This is an obvious takeover target.
Lastly, SFOR - well this is completely underpriced compared to its peers. But again, this seems to be a feature of companies with well known leaders like THG. Under Sir Martin Sorrell, this company is turning round at a rate of knots, the market merely has not caught up with it.
All companies go through trading cycles - it seems to me now that there are many companies - such as the above four - where the market has just not caught up with where they are in that trading cycle.
A lot of money to be made out there, as ever, DYOR and good luck.
First there was Psion, then we had Blue Prism, then Darktrace, now I am awaiting the bid on CRTA.
These cutting edge technology shares always are volatile, but they are all attractive to predators, and CRTA's technology is top of class. This is just a matter of time now until a bid. As trading improves and deals get done, you will see the price rapidly - and I mean rapidly - rise. Just a question of being patient.
The company has enough cash until end of the year, that is assuming no turnover to assist it. Add in the turnover expected between now and 31st December and you get enough cash to easily see us into mid / end 2025. In other words as the company moves to free cash flow positive status, the shares must rally substantially............
Got to agree with Spratt on this. I’ve invested in many companies over the years who have brought out an RNS confirming a new financial facility following a period of (obvious) discussion. Whoever they choose to talk to, you’d expect the discussions to be kept private until a deal is struck.
I really don’t see any issues to RG being the discussion party, should that happen. He’s already the largest shareholder and clearly likes the company so he should be supportive.
In their earlier update, the company advised an expectation of sharply increasing sales as the year progresses. Results from other companies show there’s a tech rebound out there, I expect CRTA to gain from this as well. It seems to me it’s all to play for out there and with such a top notch management team in place we surely have at least a fighting chance of the turnaround taking place. I thoroughly expect a major rerate of the shares soon as the recovery starts to become clearer. Arranging some sort of facility just seems prudent alongside everything else going on.
I’m buying more accordingly. If a soft facility is announced the shares will rocket.
What I meant is that I think CRTA have invited RG to discuss providing a soft facility to them as it will be mutually beneficial. After all, they have no idea for sure that the year will work out, it is all based on hope and a range of assumptions. We hope most of these are reasonable ones, and that the company can trade through to a successful outcome, but it is perfectly wise for them to plan a facility in case of any issues. The biggest shareholder is an obvious choice, especially if he's on side.
And here's the conundrum - RG has not bought more for a while, yet previously he was regularly increasing his stake. So what is stopping him given the price is near all time lows? I think he has entered into these discussions and the books have had to be opened up to him as a result. Such discussions normally exclude the involved parties from increasing their stakes during such discussions. Hence the obvious silence from RG.
When I commented that the penny was starting to drop, what I meant here was that a number of buyers began buying in and buys do exceed sells over the last few days. Nothing special yet, everyone's assessing things and forming their own opinions. These are mine, they may be wrong, but I am an investor with decades of experience, and I believe such discussions would be a logical move by both parties at this stage, so why not?
Where is Richard Griffiths? Before the recent update, he was frequently seen increasing his stake, since then the price has tumbled and he is nowhere to be seen. What is going on?
This is only my conjecture, and perhaps I am wrong, but I think he has been asked to assist with any funding and has obviously then asked to see the books. In such a position, he cannot increase his stake.
He could easily provide a soft facility to CRTA secured perhaps against a building etc, and provide any liquidity they need. For him, the sorts of money involved needed to probably see CRTA through are small, so the facility need not be large.
It's all a question of course as to how well business is coming through, but one has to plan for contingencies, even worst case ones, and it would seem wise to bring him in, if he is amenable. Given his current 20%+ shareholding, I'd guess he would be pretty amenable to helping.
More to the point, news of a decent facility - which CRTA might never need to use - would enormously aid the share price. Friendly large shareholders can be worth their weight in gold......
I thoroughly expect the shares to nudge the 400p level imminently now and break through within the next few days. No reason now to hold back the shares. And, there's the increased chance of Frasers now making an opportunistic bid before the recovery becomes too obvious.