The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Ex-div today $0.1321/ca.10.5p
On yesterday's analyst call, management seemed pretty confident that the ENI deal was a matter of crossing the 'T's and dotting the 'I's, but obviously nothing is guaranteed. Reading between the lines, I think that they hoped to get the deal completed to go out alongside the results, hence the delay in results release from 21st to 27th, but that was still not enough time to get the legal work over the line, so they went for a four week exclusivity period to complete the deal. Most analysts seemed to like the deal, so on completion, I expect some upward share price momentum. Definitely one to tuck away.
Although you spotted the new £54m order, I felt that it was buried in the statement. I also clarified with company that this was completely new. With this and the drone order equivalent to 90% of FY23 sales, and the other divisions performing well, I see a bumper FY24, which could be boosted by a US military order. Market missing this one, probably due to the poor investor communications and lack of research.
Massive difference between Phase II and Phase III. Phase II results only provide the company with the data on which to decide whether to invest much higher trial costs and time on a putative drug. Some small Phase I and Phase II trials are run by the company itself, but rarely these days, as people will always question the data. But Phase III is a entirely different ball game and the regulators require total independence to avoid potential conflicts of interest. I stick by my previous post.
Logistics for multi-centre clinical trials are complex and run by independent Contract Research Organisations. The CRO collects all the data, analyses as per the protocol and submits a report to the company. There is no communication between the company and the CRO until the report is complete and submitted.
SNG has no privileged information ahead of this report. If it had received any information, positive or negative, it would have to report it to the market.
Ask yourself why broker is putting out a mega bullish note just ahead of a binary trial outcome....aghh company has LESS THAN THREE MONTHS CASH....desperately needs a large fund raise. God help them if the trial result is bad.
Having been sounded out by the brokers in advance, that was the maximum price that the institutions were prepared to pay. If it had tried a higher price, it would not have got the funding.
What is more important is that the overpaid management team were prepared to only put up £40k between them. Tells you everything you need to know.
GDR has failed to deliver for many years, never getting close to forecasts, and that simply does not look set to change. Promised a £1m order on Indian regulatory approval. The order simply has not happened even after approval. Dropped the AIHL statement into market two weeks ago to try and boost share price ahead of this Placing. Talking about AIHL being a £5m UK opportunity – well that will not change anything! AVOID. Simply putting your cash into managements undeserving pockets.
Oh dear, yet again. Today's positive statement is to deflect attention that GDR failed to get that £1m contract over the line. For fifth year in a row management has failed to meet ever lowered targets. Even its broker (FinnCap) will not put out a forecast for year just ended. Auditors unlikely to sign off that it has 12 months working capital, so yet another fund raise in prospect. It would have to be very deeply discounted.
Do not get hung up on this white label contract. TRX is contractually prevented from disclosing who it is, so it will not be announced. Focus on the strong demand for it products and the increased capacity coming on stream to satisfy that demand.
While I agree with you that it is good to be cynical, I cannot agree with your comment today regarding the share price movement. The shares have been very stable for over one month and were modestly down yesterday. The movement today is attributable solely to the 1H trading statement released at 7.00am, which stated that sales are up 11% and PBT will be £6m, way ahead of market expectations. Its broker has a PBT forecast for 2021 of £8.9m. Given that the outlook statement is very positive, this forecast looks very low, hence the share price movement. This is not insider movement before an announcement.