The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Just now, I'd rate them a buy. It's a very thinly traded stock, and the share price always drops after results as the short term traders unload their speculative holdings. It'll drift up again in the coming months to a new high prior to the next trading update in July. Thereafter, falling back again - unless, of course, there's some really good news in the update, in which case you'd kick yourself for having sold too early :-)
If you do spot a high again, please let us all know before it passes ;-)
1. Markets are down generally
2. Before the last trading update in January, the shares were trading at 51p. Since then they've risen 30%. People who bought in then will have been taking profits.
3. The results only confirmed what was in the trading update, no positive surprises to galvanise buying.
4. The institutional shareholding is pretty static. This share will move when new PIs get interested, which won't be until they read positive news. Too early for that today.
As after the TU, I'd expect a gradual rise over the next couple of weeks, once short-term traders have taken their profits.
https://*********************/companies/uk/medical-equipment-services/tissue-regenix-group-plc/research/cavendish/tissue-regenix-record-revenues-and-profitability/129_ca6da6df-6d71-41c1-9616-757b9ff7b3e4
amusingly labelled "prepared solely for jim rabe. not to be distributed anywhere." ;-)
The finals should confirm the good news from the interims, and hopefully report more progress. The notice of results should excite some interest in and demand for the shares amongst PIs, so I'm expecting another run up in the next couple of weeks.
Bought some more this morning on that basis.
It's good to see the share price rising above 60p, but the intra-day high for the last year is still the 70p it reached on 31st March 2023. I won't feel confident in the short term until it steadies in the 70s and I can see a likelihood of further rises after the annual results. At the moment it is still a very thin market.
They've consistently said they expect to fund expansion with current capital base, so I hope no rights issue, and would rather see debt fall over next couple of years.
No bad surprises in the trading update and the SP should see a significant improvement from next month.
It's a bit of a catch 22 situation: new investors will want to see the share price rising before they buy in; the share price will rise when new buyers buy in. Institutional investors are holding pat.
When the much predicted profit arrives and the company starts generating cash, we will see movement.
a 'research' note from finncap (https://*********************/ - free registration maybe required) contains this:
"we nudge up our forecasts to reflect the adjusted ebitda progress but suggest that the risk of changes remains to the upside. we reiterate our target price of 120p, at which level the stock would trade on 2023e ev/sales of 3.9x, dropping to 3.4x in fy 2024, which we believe reflects the above-market revenue growth (2-year cagr of 18%) and the move towards an operationally cash generative business in 2024, which is also supported by peer group (differentiated regenerative medical products) acquisitions on 4-8x ev/sales multiples. "
tp of 120p would be nice ;)
Discussion of companies starts ca. 10min in, TRX at ca. 14.15:
https://www.voxmarkets.co.uk/articles/vadim-alexandre-discusses-spectral-md-tissue-regenix-and-the-tedious-market-72b6cc2/
TL;DR - he likes TRX