Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Goes without saying that the CEO buying in at these levels is an indication that at the very least he is confident in the value proposition of ONC.
Reasons for buying are obvious too:
-Shareholder trust
-Pharma M&A activity and ramp of shares before potential sale
-Knowing that this SP is rock bottom and can only go up from here
I trust that ONC has sold assets and not so desperate as to sell the rest for an apple and an egg
You are spot on there. I would appeal to management/and the large investors to not sell out here at this valuation. Or anything under 120mio at its current state. Many people incuding myself would lose tremendous amounts and I would not see an immediate need to sell. There is opportunity to make so much more cash. My average on this SP is 1.3GBP with a proportionally gigantic holding.
I will have faith. That is all I have left. Faith and appeal
It's in everyone's interest that the business performs. Especially those running it as they are the most invested. I disagree with you.
This is not a short term investment. I think We will see this bird take off in the near term. My position is to keep holding until we are airborne and beyond.
Looking at his CV, there is some very credible track record and I believe that he comes across an intelligent individual. I don't think this current point in time is the end all be all for the company but rather the beginning of a strategy they have implemented over time.
I think we need to look at the next 6 month and those will be very revealing. 2more reports. From here on out I think they will be in a much better place.
Unless you are right and I was blind to the fact that there is a bunch of highly qualified idiots, that don't know the first thing about business. I somehow doubt that.
You are right, I don't have transparency and it is unfair to call out who I think should stay or go. Its also unfounded. Its hard to say whose fault it was back when 1mio was left on the table due to an IFRS reporting issue. Its hardtop say whether debt was accumulated to this degree because selling assets was part of the strategy or just because the macro environment is challenging and revenues were not realised in the way it was expected. But to the outside it seems like sloppy handling of the Financials. So if this is something they want to address, then I am sure the investor community, certainly me, would perhaps gain more trust.
I am sell8ng another to put down here today as well. I think that we won't see the shares this cheap again.
I was wrong in the past so what do I know.....
In my view this was the right move in terms of selling assets , albeit disappointing. The geopolitical circumstances starting with Covid made it very difficult to penetrate some of the markets they were eyeing up like China, Russia, Spain, South America etc. Especially when the business doesn't have boots on the ground, I can imagine complying with the regulatory environment either direct or through partners would have been difficult and coupled with lots of overheads. Tough grind that was for a business of ONC size. It makes sense to hand that to a company with global presence and focus on the services side which is highly lucrative especially at scale.
I am sticking with this one here becauae I think that we are not far off from seeing a decent/healthy balance sheet soon which will guaranteed turn the tide on this stock. Frustrating is that its taking longer. But I really believe we are at the cusp of a turning point. With the PI that ONC has today and the amount of top quality customers and Contracts that are being signed the foundations are there. Now it's just time to execute and be prepared for higher volumes coming through. The markets is huge and growing and ONC is a leader in the space. The asset sale seems to have been part of a strategy since July last year so its not something that was done on the whim. CFO in my view needs to go. Not so sure about CEO. This man has incredible experience and credentials that are solid and has always made a great impression when speaking in interviews. The company needs to communicate clearly to the investor community what can be expected here. And then deliver on it. At the moment it's all a bit fluffy and I cannot measure success against fluff.
Let's hope indeed they have not lost faith. I noticed a change in the investor list recently. I wonder who has sold all their shares to dump the price by 50% today.....probably a large holder with small faith...
The shares are also worth peanuts right now. Having followed here for 4 years+ I want to highlight that buying shares now means you get them for 1/4 the price of what they were 4 years ago. We have high interest rates, a suppressed Pharma market and certainly a lot of nervousity in the investment community. But one thing should not be underestimated. With the sale of assets the company has cash through a new loan facility. They repayd 65% or so of their debt obligations which is huge. Cash flow positive in near term and 80% profit margin. Business relationships (MSAs with 7+ of top 15 top pharmas) and several relationships with research institutions that will further expand the reach as publications are released and more awareness and marketing occurs. Sales teams in NA ramped up and a path to expand and diversify the incredible PI of IMM7NOinsights to cater for many more diseases.
Financially the business in the next report will be 10x better than they were 4 years ago with the foundations layer to grow at scale. If this all happens according to plan this SP can skyrocket from where it is . I will pick up my balls and put down some more here. Seems risky but man will that lower my average and hopefully pay off in the coming cycles. Long term hold - Strong strong by IMHO.
What do I know?!
"It remains my firm belief that this platform has the potential to offer significant value to our customers, and is primed to respond, at scale, in lockstep with the market as it inevitably rebounds. Post the sale of the Oncimmune Limited, our focus is the expansion of the ImmunoINSIGHTS services business with an intention to achieve a cash flow break even position in the near term." Adam H.
I can see great Business Development both on the Research and on the Pharma Services side. I also understand the strategy has been to focus singularly on the IMMUNOInsights business which allows all resource to flow there and to deliver value a d to expand and generate revenue at scale. Next financial report should reflect the proceeds from the asset sale and potentially wake more people up to the true opportunity here. As of right now though....the numbers are all a bit blurry. When cash flow positive, hopefully by 2024, I think this could take a real U turn.
I also firmly believe the company is at a turning point.
What can I say. 31% drop. I can only appeal to management to get this sorted and provide clear guidance, vision and set realistic expectations. I want to know what the 3 year pla/roadmap is after the sale. I also want to have a better revenue forecast. I understand that this business is young and needs some time and resource to find its feet. But maybe that's a sign that investing here was probably premature. In fact that seems highly likely. I am not sure what you are seeing @trek but I am agreeing more with Compounds view. Peanuts Sale of assets and unfortunately at the right time to cover debts but wrong time in the market for ONC. I also wonder whether the full year revenue will be equally disappointing as the interim result or whether we should just tag on to this impeccable management optimism and believe that business is picking up. Hard to say. I remain hopeful that the worst (surely) must be over....unless the rest of the business simply collapses.....
So Trek, now the cards are on the table. AI would be great. Are you going to put down at this price (lower than 2019 SP when they made 170-180k revenue. I get the balance sheet got out of whack and they sold a number of assets to cover this but.....is it not the case that with a cash cow service and a close to all time low SP, this is a no brainer? Or do you think we will only know in 1 year. ..When we get the next clue
Here a couple of lines from Paul Hill.
https://www.linkedin.com/posts/paul-hill-a5994116_onc-onc-immunoinsights-activity-7066322496001585153-NU5_?utm_source=share&utm_medium=member_desktop
I am slightly disappointed and at the same time happy. Disappointed because I feel like the asset sale could have been avoided but it was not making money anyway. So hopefully as stated below, it allows for a sharper focus on the core service (IMMUNOInsights) and avoids inefficient overheads. Excited because I feel like we have a cash cow on our hands now. I am missing a forward view/ a vision. If IMMUNOInsights was sold off this year too I would be gutted. Waste of years and money. I had higher hopes for this one than a 1.5gbp tag.
Does anyone know any more about the potential asset divestments, funding structure, breach of IPF Partner covenant and possible waiver? An update would be welcome. Even just rough timeline for when updates could be expected. Also lets keep it positive ;) enough trouble in the world as is. We need more companies like Oncimmune and to give them a chance to grow. The seeds have been sown.
Seems to me like Oncimmune is confident they can weather this debt to equity shambles in the near future, given they are planning a mid-term replication of the Dortmund facility in the US. This would of course require additional and potentially significant investment.1. When will we learn more about the breach of covenant?2. Revenues for H1 FY23 already exceed the total revenue for 15 month period to Aug 22. What is the revenue guidance for FY23? Does anyone know?All I see is that pipeline should be around 16.5mio now.
I am spamming the board here but just wondered if anyone else noticed UBS and Barclays seem to have for the time being at least sold their share and we have a new set of shareholder incl. BNP, HSBC and Credit Suisse. Have those three always been in or is this more recent?