Market cap/share price6 Jun 2020 12:33
This board used to be oh so quiet back in April...and there are certainly some interesting views on where this is going appearing.
I think the best way of understanding it is to consider the market cap, ie the value of the business = number of shares in issue x share price.
Pre-covid HYVE was doing nicely, lets take the share price as £1.00, shares in issue 815.8m = market cap £815.8m.
Covid hits, HYVE income stops, market re rates. Levels vary according to degree of risk of business survival and effect of Covid - usually overdone initially to be on the safe side. In HYVEs case this ended up settling in April at say 21p a share, still 815.8m shares in issue, so market cap now say £170m ish reflecting the prevailing ongoing cost and little revenue situation, and the likelihood of a need to raise cash.
Cash now raised, so future secured for now. Lots of hope of getting back to normal across the markets. All good.
So today the market cap is showing as only £110.95m. This is because the calculation is still based on the consolidated 81.58m shares, as the new shares are not yet admitted- a kind of halfway house.
When the new 183.5m shares are admitted, that gives a total shares in issue of 265m. So at the previous pre covid market cap of £815.8m, divide by 265m = £3.08/share. There are several examples of shares where cash is now sorted which have returned to circa 40-50% of pre-covid levels so current value here looks about right to me. Clearly it’s a decent business and was rising on the back of that but for me getting back to last year is the first target here.
All IMHO.
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