Moving Forwards29 Jan 2021 19:42
OK, lets move this forward.
I think I speak for everyone in saying that having waited so long for the update to finally arrive, their choice of wording was
poor, and this resulted in todays share price carnage.
On Tuesday, the share price was already reversing due to being kept in the dark without any official clarity on timelines and then on the last possible day they release this.
The statement did nothing to install investor confidence; it gave no indication of forward potential, no update on products, nothing about future views. In fact, it was so badly worded it read like they were completely directionless. I genuinely believe this was not their intention.
I was so disappointed with the statement that I contacted Mandy today to ask why? She explained that: -
“They were excited and hopeful of continued growth but given that they were only in the first month of the new trading year it was premature to comment on what full trading might look like for 2021 especially with the market being so volatile”.
Its kind of feels like they address the issue of a Regulatory news item like they would a scientific journal entry. IE 100% precise, nothing less will do.
I have suggested that Graham sticks to the areas he is great at and NOT write the updates!! Clearly this is not his forte.
Now I accept that no business can predict accurately the next years revenues but even if they had just added a bit of positivity about the sort of contracts they are winning or even January is expected to deliver x revenue it would show that revenues are progressing nicely.
Roche and other businesses in this sector are putting out real positive spin out. The business is desperately crying out for a good PR team to be installed in my opinion, but they cannot see it, you do not know what you do not know. But experienced PR would not put out what was probably a factually correct statement but written in a pessimistic tone.
Now I not suggesting they should paint everything as being rosy in the garden but with so much success achieved, we need to see a sense of drive, passion even, champion their successes, that they are a top draw company and they will be successful, they are on this and giving their all. The statement did not give that impression today and it is a travesty compared to the actual reality of what they are delivering.
Despite the above, I have topped up further today, its a great business and this something that is easily addressable. Everything else is fundamentally sound and I can’t get past that. No way should this business be valued at twice its revenue which is where we are now – ridiculous.
GLA
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