The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
A company like ncyt making huge losses and bleeding cash should not be paying dividends. Do I want 10p a share or do I want £7m going into somehow growing this company? No brainer.
AIM stocks are boom or bust from a capital appreciation perspective, for regular dividends we need to be looking at proper companies in the higher leagues of the ftse.
Any lth sitting on massive losses here would be bonkers to feel otherwise
Good luck to them. Got to be a better life over there than in this absolute dump. UK is finished so a good idea to seek pastures new! May get some appreciation over there than be treated terribly like over here with our terrible, terrible excuse of a 'government'. Government a very kind way of saying 'legalised crime syndicate'.
Swag - exactly my point. LR walks away with shares with £1m+ for doing absolutely nothing. Nothing against him obvs, but he had no involvement during covid and has no impact on the dispute so all he needs to do if we get a good outcome is nurse the company through a couple of years of stability with no real incentive to take risks and he becomes a millionaire (if he isn't already).
Don't get me wrong, fair play to the man. None of us would turn down £1m+ for doing absolutely nothing.
My point about it being a 'bonus' is that if we get a favourable outcome and say add £40m cash to the pile then that gives us almost £1.38 marcap in cash, therefore they'd have met it and just need to dawdle along slowly maintaining that SP, minimising losses and preserving the cash. They'll want another LTIP when this ends so they aren't going to want to start that at £2/2.50 or whatever as it'll be practically impossible to achieve.
I appreciate that if they are awarded the shares then yes they will want the price to rise but they also may just want to duck out at the earliest possible opprortunity with a bag of cash for doing nothing, and not have the desire to grow the company.
I guess I am just very scepitcal about it all. The last LTIP was set unrealistically high and this feels far too low.
The more I think about it the more I think it's just a bonus for doing nothing. Not a single member of that board will impact the dispute outcome yet they'll all become hundreds of thousands of pounds (LR over 1m) better off if it goes our way. Something about that is just wrong.
Once it gets to £1.38, if it ever does, they have zero incentive to push it higher until the next LTIP is reached, so it would seem that that is the ceiling until Dec 2026. Very poor. At least making it £2+ incentivises them to actually do something with the money. They could hit £1.38 and leave the cash in the bank for 2.5 years.
At least it is realistic unlike the last one. £1.38 is a fairly paltry bar but I expect many of us will be gone by then anyway.
What is frustrating is there is no incentive for them to push beyond the max figure and if they somehow achieved it, wouldn’t want to anyway as it would increase the base for the next one
So essentially the board have put a £1.38 ceiling on the SP which is about £95m marcap - if we don’t lose the dispute and get a bit of cash back this seems fair as it may represent cash.
An actually vaguely sensible rns for a change
Let it sink in, we've spent £60m of the covid windfall. That is around 50% MORE than we have in the bank which we all consider to be a lot. That is a massive spend. And to date, we have little to show for it. That doesn't mean we never will, but at the moment we as shareholders do not.
What is negative about my post? It's realistic. The company have given us zero info on strategy, contracts won etc, for a long time, but we do have a big cash balance which may rise. All we have currently is data that suggests that we consistently lose money (that's in the annual accounts) other than 2020. Having spent £60m of the windfall, not a single one of us knows how or if that will translate into worthwhile profits. We were lied to about £100m of organic revenue but soon enough the person who said that will be out of the door so hopefully the new regime will actually have something to say.
Totally agree HC, cash + a bit if we actually announce something of note, otherwise we're just a cash holding company with some admin expenses. The market will look at us for what we are, a company losing money but one with a load of cash (relative to other AIM companies) so likely price it at or just below cash. Anyone talking of £3.50 is in another world as that is almost £245m marcap for a £11m t/o loss making company with anywhere (post dispute) from £0 to £100m ish. Literally no reason for any significant premium.
We’ve seen it a million times. Massive uplift based on absolutely nothing then days and weeks going lower than it started. On the uplift days, get a few posts saying ‘ooh is it news? Is it the dispute?’ When in fact it’s absolutely nothing of the sort.
We’ve not had an rns of substance for months and the dispute is 2 months away so unlikely it’s anything exciting at sll
Maybe the vast majority selling aren’t mugs like us who have multi pound averages. Could have been taking a punt over the last year and have just become bored with it and taking a small loss.
I imagine the amount of mugs with big averages is quite low. We only have ourselves to blame, greed took over.