Getting funds in at 4p is a massive premium to the price over the past couple of years, and means the running costs are spread over more assets, acting as less of a drag on performance. As a long term holder (with a partial participation in the placing, though less than my share) I'm really pleased with what they've been doing over recent months.
Really? I don't have a big position here but the £187m sale in Feb wiped out all debt. This £37m sale is pretty minor by comparison. I'm guessing Kingspan tried taking advantage of market conditions to cut the price, and got told no, presumably on the grounds they'd sooner hang on than accept the revised price, whatever it was.
weird the posts got removed. Does this site get moderated anonymously or something? Think posts of mine have vanished and I don't think I said anything incorrect or improper or abusive or anything like that. I notice the site omits some RNS announcements too - Chris Akers last holdings announcement and today's one about VRE.
Hard to have confidence in the site if it presents a partial view both of facts and opinions.
Well maybe I need a more sophisticated broker, but MY placing shares definitely haven't been forward sold. They've been showing in my account for a couple of days but they won't be tradeable until some point tomorrow, usually not first thing. Been in this before and done well, I'd be amazed if it closes higher tomorrow but any setback should be short lived; Dr Burton doesn't waste time and I'm sure this will be an exciting and lucrative journey over the next few months.
Sorry to disappoint you skittish but most of the Torpedo Factory group of holders aren't going anywhere, and indeed have participated in the placing to an extent. There are half a dozen or so long term holders who are trimming their stakes having held patiently for many years and this may explain the limited number of TR1s. There are also Shard clients who bought 25% of the company in the Feb 2019 placing with no one person being over 3%, would be surprising if some of those weren't now banking some profits.
PIres has an exciting future and having first invested years ago the TFG holders will want to be part of that future. Their TR1s will continue to be issued in a timely manner based on shareholdings and the total number of shares in issue changing as the placing tranches get issued.
Hi Draft, long time no speak!
Aren’t you and others misinterpreting the RNS? The £1 per share isn’t for shares in VLS it’s for a share in Altalto Ltd. As you can see from Companies House it has one £1 share in issue at present. Isn’t the RNS simply saying that BA and Shell each have the option to buy a £1 share as well, allowing the three businesses to own a third of Altalto each, pending a shareholders agreement about the funding of Altalto.
And cash has quintupled. Nigel Burton has done a transformational deal at practically every other company he's chaired. Something similar will happen here I have no doubt. Hence I just bought a decent chunk in the placing.
With respect, that's absolute nonsense - it's very far from being a cash shell. It DOES have cash (no debt) but it owns 13% of Sure Valley Ventures, which has stakes in about a dozen high tech firms, some of which are quoted and some have raised money at many times the SVV investment price. The SVV structure means that when a portfolio firm is sold, the cash passes straight back to SVV's investors. This happened last year with the sale of Artomatix at about 5x the investment price - and meant that Pires got most of the cash it invested in SVV back within a couple of months of making the investment. But it still has stakes in all the other portfolio companies. It also has a direct stake in Get Visibility, investing alongside SVV getting the due diligence essentially done for free. Plus maybe 1m shares in Eco Atlantic which it bought at about 16p, and from memory over 1m shares in Portage Biotech which is listed in the US. AND a load of cash coming from the placing - and looks like a stream of further cash coming in from warrants now that the share price is around the warrant strike price.
Jesus, what a way to invest.
Guess you missed the final paragraph about how 17% of their assets are going to need writing off. Think I bought into this at 0.03p and sold out at 0.02p some years ago now. Feels like it has potential but consistently fails to achieve it.
I'm not sure why you're 50-50! You're sounding more like 100-0!
Play your scenario through - the resolutions are voted down, they don't do the acquisition, they need a bigger amount of cash sooner. This deal virtualy eliminates losses, after the current financial year.
Anython you appear to assume the bond issue was available on some kind of a la carte basis. Without the acquisition, which appears to cut losses by £900k a year, the whole prospect is significantly riskier. The bond holder has the downside of equity but the upside of an (admittedly high interest) loan. Why would they do it on anything like these terms without the acquisition.
I was hugely pessimistic about this this previously, they clearly didn’t have the funding. Now they do, and de-risking the whole thing is entirely sensible. Yes it shifts the risk profile but it was going bust. Now it isn’t, and indeed from these levels I think it can do well. I’ve topped up today.
Well, me obviously! I’ve been bearish on this at 0.3p, up to 0.35p and down to 0.16p. Investrip makes good points about the acquisition but look at the cost savings. If they can buy firms making £300k on £3m revenue for 5x earnings and strip out £600k of costs, they’re really buying earnings at 1.7x earnings. That’s going to be a great business within a couple of years. The only risk was they ran out of money. This deal (a) raises enough cash and (b) shows vendors will take Toople paper on a long term lock in. This will be 0.3p again inside 2 years.
Raze this first came to my attention in the 0.3p placing, thought it was a basket case, didn't take part at 0.35p. Have committed to buying in at 0.1p which is my first investment. Guessing I'll have around 0.3%.
Investrip I feel your pain from similar situations. If I'd held 2.5% and wasn't given chance to take part I'd be fuming. You make some good points about the acquisition but I don't see the sense in trying to reject the resolutions. This might not be a brilliant strategic move but sometimes you need to be tactical. If there's right about £50k of cost savings this is going to add £900k to profit in a full year before we consider any growth. The vendor is mainly taking TOOP shares and is locked in for three years, if they thought their business was evaporating they wouldn't have sold on those terms. Without this deal I don't think they can raise money, because they can't grow fast enough to mop up the losses.
It's the acquisition which has transformed my view. It means the business has a funded path to profitability, and I can see the share price doubling or trebling over the next couple of years. Without it I just don't see how they survive.
Investrip that’s old news though. I said on 24 Jan the net loss would be £1.6m, it was easy to call. But the acquisition more than doubles the size of the business, adds £300k+ of profit, and gives scope for £600k of cost cutting in a full year. Clearly it’ll lose a bit of money in the year to sept 2020, but at the rate they’re growing it’s easy to see profitability next year.
Are you new to this? Don’t fall in love with a share. It’s all about the price you buy and the price you sell. Most companies have good and bad points. This was a sell at 0.16p when it was fast growing but subscale, losses 50%+ of turnover, and lacking the funds to reach profitability. Now it’s a £6m turnover business with losses less than 10% of turnover and still growing, with stacks of cash to provide a buffer or buy more revenue. And, more importantly, it’s 0.10p not 0.16p!
I posted at 8am on Weds saying they’ll need to raise cash in the next financial year, and maybe they can find loan note investors. Hilariously later that morning I got made inside and learned they were planning exactly that. What I didn’t foresee was the acquisition. Adds a decent amount of profit, the current financial year will clearly see losses hugely reduced, with cost savings they’re almost certainly going to be profitable next year given the likely further growth, even without the cash pile now available for further acquisitions.
Im suddenly 180deg different on this share. From this level it’s now a strong buy. So I did :)