Member Info for Pharmhall

It's a pure guess...but I recall JL mentioning Jet2 earlier in year before Iran hit. Am I right?

But on a more serious note, that is why you need a portfolio to get a good balance and hopefully have more ups than downs.

Just lobbed out 50% of my ENSI holding at 120.5p (3x over 2 years); and 50% of my EPP (1x in 4 months).....never does any harm to lock in some profit.

Hi RM...One company that I am looking at currently is Atome (ATOM). Its into fertilizers, which is pretty topical given Iran/oil price, but is not currently producing. All eyes were focused on it getting funding in place, which did happen last week. On its own, this would have sent the shares comfortably (IMHO) above 100p. But there was a sting in the tail with management announcing a capital increase at 60p (ca.30% discount), which most PI could not participate in. But I do believe the fundamental story is solid; and directors invested and have much skin-in-the-game, so I am banking on a good recovery from the depressed 61p share price. (Transparency: I bought large in my SIPP at 60.5p; and am suffering losses in my existing ISA holding which could not participate in funding).

I am very much of the same view. The only recent news has been all the staffing, relationships and positioning in preparation for the World Cup, which, as you say, is less than a month away. Financially, we will remain in the dark until there is a trading update/FY'26 results to end-June. Cash at 31/12/25 was £1.824m, boosted by subscriptions of £0.965m and £0.384m in January; a net fund raise of £2.2m on completion of the RTO; and £0.816m warrant exercise in March – total £6.2m. From this there has been five months working capital/cash burn – anybody's guess (say -£2.0m), so should have about £4m. But my feeling is that ,when we do eventually, get financial news it is likely to surprise on the upside.

I also take huge comfort that the vendors of Estadio Gana received shares and directors put up significant amounts of their own money in the fundraise at 0.5p per share, so they are well under water currently. Taking all this into consideration, I have just picked up a few million under 0.21p, which IMHO, seems to be an amazing opportunity.

Agreed, I saw that from BAE...but I have been watching Rheinmetall AG and it is now at an 18-month low. Has risen 12% and fallen back 15% in just 5 trading days...so, so volatile, but I think it is getting to cheap territory.

Hi JL....I agree with everything you say. My thought process two months ago was that there was clearly uncertainty about defence orders/bookings/ revenue recognition; and my M&A experience tells me that everything takes much longer to conclude than expected, so was not expecting any short-term announcement about sale of non-core divisions. Hence, I locked in some profits. But markets have a mind of their own!!

Also, through painful experience over many years, I have learned that it never does any harm to lock in a profit, even if the share subsequently rises further, it could just as easily go the other way (good example being SCE earlier this year, and while I did well on that one, it was still a painful end and I could have done so much better).

Keep smiling and best of luck with MSI.

RM...I'm very much enjoying the ride in ENSI. Today is difficult decision, take some profits (>100%) or let it ride. Anything in this space has US momentum (see Hawkeye IPO yesterday), so likely to rise further in short-term. IMHO, it has much further to go over the medium term.

I haven't taken bait with CLBS yet. My feeling is that the stock will dip when it announces its FY'26 (March) results which will be poor. But that would be the time to strike for the recovery in fiscal 2027.

On MWE, I'm still in and doing very nicely thanks to you. While it is tempting to take profits when it goes over 70p, it is still incredibly cheap, with a good yield, so I don't see it dropping 20% to make a trade really worthwhile. Big decision come in the 80's, when profit will be >100%.

Stay in touch, I love exchanging ideas with you.

Hi JL & RM...sorry I've been a bit quiet lately. First, well done JL on your MSI call, you clearly read the situation better than me. A month or so ago, I could not see news to re-rate it upwards given all the slightly negative commentary from management and the perennial lack of newsflow around this time of year, so sold down to my last 2,000 shares.

Secondly, as a new idea, have either of you looked at Diversified Energy (DEC)? It can be bought in US$ or GBP (London Main Market). Excellent 1Q results and an add-on acquisition. Yet market marked it down because oil price was dropping yesterday. Stock is incredibly cheap (Market cap o $1,070m and an annualised EBITDA of $540m, so 2.0x EV/EBITDA), cash generative, and a good track record. Personal view, if Middle East were to be sorted this week, it will take months to get back to normal, so oil prices likely to stay relatively high. Therefore, IMHO, worth taking a look. (For transparency, I have in SIPP and ISA and my children have in their ISAs)

Investors Chronicle has just released a positive comment about the cash position relative to market cap and recovery opportunity at CLBS. Forget the downturn over last two years, much of which was the consequence of changing accounting policies for better approach and to eliminate lumpiness in sales. This is a significant recover play.

Really worth viewing results presentation when its released by 'Investor Meet' later today. Detractors go on about 2H being slower than 1H, dilutive effect of share-based consideration and employee-incentive schemes, and impact of AI. Listen to the presentation and all those issues are well addressed by the executive team.

ELIX is a fast-growth, cash-generative, well-run company with most employees as shareholders, therefore entrepreneurial. Interesting observation, if it had the same forward P/E today as it had at IPO six years ago, it would already be in FTSE250. This company is really going places and the market will eventually realise that. Now Main Market listed, institutions will have to start taking note and buy the shares. Beat the herd and tuck away now.

Good to hear from you again, I hope you had a restful time away. As you have observed, MSI has had a steady rise during your absence on zero news - there's a surprise! My holding is now quite low as I've been taking profits (between 6.8x and 8.2x my 190p average in price) in these volatile markets, but I will still follow the story and put out forecasts as usual.

RM...ELIX results today...cracking! Market will eventually wake up to a high growth, cash generative stock, now Main Board listed. It is trading on 10.5x prospective EPS (conservative) and offers a 3% yield. Since we last communicated, I have taken profits in miners and reinvested into oils, mostly US because I am worried that Rachel Thieves will increase the windfall tax.

I also think there are great opportunities in small caps; for example, I took a punt in THG (wife absolutely loves products and service), despite the incredibly vociferous detractors on this site. I adopted 'follow-the money', with Matthew Moulton investing GBP8m at 34.9p in February; and went in opportunistically at 28.4p on 2nd April. So far, so good!

I wrote back in January after the trading update that ELIX was one of my favourites and well worth tucking away. I received a lot of criticism because much of the growth was inorganic. Well there is nothing wrong with that if you are delivering 36% EPS growth and 27% DPS growth. That is fine by my. Also, ELIX ties in the acquired partners and aligns them with, in-part, share-based consideration.

The numbers speak for themselves and management's aspiration to become part of the FTSE-250 index by the end of the year seems well on course. Stated net debt was GBP24.1m (although I calculate it at -28.5m) from net cash of GBP2.6m, but this is after -36.4m cash payments for acquisitions and -20.7m on share buy-back. Eventually the market will catch up with this well-positioned, strong growth, cash-generative company.

1Q'26 was reported as a record quarter, so excellent start to 2026. Investor Meet presentation is tomorrow.

Today's March YE trading update from CLBS was much as expected, with 2026 being more of a transition year towards greater annual recurring revenues (ARR). Investment to expand order book and gain new clients expected to boost fiscal 2027 and 2028. Market cap of just £31m at 80p and net cash of £24m, so an EV of just £6m on sales of £24m, very cheap. I don't expect any fireworks short term, unless new contracts are announced, but well worth tucking away at ca.80p for recovery. Cash balance suggests very limited downside.

First, the announcement today tells me that the situation is more complicated than a simple question about accrued royalties from Croda. Secondly, having correctly gone down the forensic accounting is route, the Chairman and new CEO will want to know the bottom line, and be clear that all stones have been turned before making an announcement to the market. Thirdly, I admit that the following is based on well thought through, but back-of-the-envelope calculations.

On 30th June 2025, SBTX had gross cash of £4.78m (can't argue with a bank statement). On 13th Feb, SBTX stated in its RNS that it had £2.92m in the bank. Therefore, it had burned £1.86m over 184 days, or £10,100 per day. On 19th March it had £2.44m in bank, so the burn rate has increased over the past month to £14,118 per day. Given that FRP Advisory has been there a month, and has at least another 12 days to go, at £3k per day (my guess), it will have racked up £140k on its forensic work by 1st April, effectively leaving £2.3m cash for the business. I am assuming that operating costs will be fractionally higher over the next few months (say £15,000 per day) due to these issues, which will give SBTX 152 days of cash, or a runway until 20th August. On this basis, at its year end on 30th June, I estimate that gross cash will be £0.77m. By the time that these figures are announced, it would likely need another cash call in order to get the auditors to sign off on its 12month working capital requirement.

Good presentation from HTG just now. Yes, some exposure to Middle East, but 2026 results not dependent on that; ME expected to add to growth in 2027 and 2028. In summing up, the CEO said that: "...in all my 38 years with the company, I have never been more optimistic about its future, the current share price represents a fantastic opportunity...". He really meant it. IMHO, each division has really good growth opportunities, but the advantage of diversification of products is that one division can compensate for another, because growth does not occur in every division, every year. Great company.

Transparency: I do have a very decent holding which is +90%. I was thinking of locking in profits, but CEO has convinced me to hold on.

RM50...I will endeavour to make it, but so dependent on home life on the day. On another matter, do you recall us talking about SNR last year and that it should be bought at anything close to 100p. Trouble was, when it got there, I had no spare cash to invest....now look at it! One that got away.

JL79...IMHO, I think that Middle Eastern countries will want to increase their defences with land-based anti-drone devices, such as Vshorad, so MSI looks well positioned. But all these things take time to happen, hence the lumpiness of MSI defence sales. Still like, but happy to have reduced exposure and waiting for a good opportunity to increase stake again over the next 6 months.

Did you read the RNS? There are no royalties, they were a figment of the CEO's imagination based on anticipated Croda sales. And given that 2026 forecasts are being brought down as well, it seems that Ashman had put yet more royalties into the forecasts. Royalties are usually paid 3-months in arrears and should only be included once informed of them by its partners – until that point in time, SBTX has no idea how well/badly Croda sales are going.

RM50...Very positive trading update today. Despite rise, this still looks very cheap even on old broker forecasts. What's not to like. Also, thank you for tip, I bought @39.5p on 8th October. Great return so far and, IMHO, much more still to come. Roll-on the results in March.

Ox123...I am not sure that I would go as far as you, but I would certainly describe the accounts as misleading and the auditors need to be challenged. Throughout the AR, revenues (I hate this term) are described product sales + royalty income, which is OK. But when you get to note 3, all revenues suddenly become "Product sales", which is totally misleading and generates incorrect gross margin calculations. The royalty stream is 100% gross margin (as evidenced in today's statement about impact on EBITDA) and should be declared separately in this note, thereby allowing correct calculations when doing cost analysis. There is no reference to royal income in the financial section of the AR, but it is there – as "Accrued income" in Note 15 – but you would not have known this in the absence of today's events. As you say - shocking!