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It will blast past six when we get news. It has to get to >10p just ot meet the minimum market cap.
I agree with Millsm. The fair price is 15p-20p based on average PE ratios on the HK Hang Seng index (and london for that matter)
I think news has leaked in Hong Kong. These are not the normal block sizes for CNEL. I think the price rise is linked to Hong Kong investors seeing the arbitrage opportunity. Last few trades:
£10.25k **
£994
£ 30k **
£ 7,293
£ 10.28k **
Should be a good week ! I anticipate we will get news very soon.
The resolutions expire 15th of July. If you takeaway the 10 days trading days notice they have to give AIM, then the deadline is June 30th. Lots of time yet.
Just crunching your numbers. If they raise £10m at the HK minimum market cap of £50m then the pre-money valuation would be £40m. Today’s market cap is £20m. Therefore the SharePrice would be double e.g. >10p.
The pre-IPO loan converts at 5p. Normally they look to double there money. Which also gives an implied price of 10p.
Personally I think it will be higher. But I really can’t see this re-listing in HK for less than 10p. With their profits this should be a £75m company.
From what I understand, they will simultaneously de-list from AIM and relist on HKEX. To do this, they are producing a new admission document for the HKEX. The draft is here: https://www1.hkexnews.hk/app/sehk/2020/101641/documents/sehk20032702630.pdf
The admission document indicates they will do a fundraise. This will no doubt set the prcie to meet the minimum market cap of £50m.
Personally, I am invested for the upside on the HKEX. I am not really watching the small £1k trades. What I have noticed is large >£10k blocks regularly going through. If they continue, they will sweep up the smaller PIs. Makes me wonder if HK traders know what's going on and taking advantage of the arbitrage.
Must be very soon. They said this would be completed in H1 and they would be obliged to update the market if this is not the case. They also said they would leave a minimum of 10 days trading before the transfer. QED we will get news very soon by next Wednesday at the latest.
It’s a bit slower today but I am glad we all have our positions. Once they start the roadshow in Hong Kong, the locals will see the arbitrage opportunity and snap up the shares in London. I am holding for HK, but I am sure we will see another spike in here.
According to Bloomberg, the average PE on the HKEX is 10.88. That would make the share worth > 15p. Still 3x to go. Exciting times indeed ! It is unthinkable that that they would relist below the average PE.
It is still so cheap. The PE is still 3.8 compared to the market average of 15.1. 4 year profit history and accounts audited by PWC. As Zac said, this is just under loved because China is in the name. This should fly in London and will certainly fly in HK. It will double but should triple and more.
I agree. Growing companies like this should be a PE of 15 e.g. 21p. A long way to go for this stock. Interesting to see that their competitor Praj Industries trades on a PE of 16.8. On a share comparison basis, that would be a price of 24.3p !!
This is true. And the PE ratio is still only 3. This is ridiculously cheap IMHO.
It should easy get to 5p. The Double River pre-IPO loan converts at 5p: https://www.lse.co.uk/rns/CNEL/convertible-loan-extension-le7x2paypv973yr.html
Double River must want to double their money and more ....
Smashed 4p.
There does not seem to be much stock available. Something's got to give.
I was just reading back through the RNS log and reminded that the convertible loan from double river converts at 5p. That will hopefully be the next price point. The loan converts when they get approval from HKEX, so i guess very soon we should hear exciting news.
Yes, very encouraging. I am just reviewing the RNS timeline. I am wondering if HKEX approval has already been given.
It is a good point. I am working on the basis that as a profitable company, they should be able to hold a PE ratio of 15 which i believe is the average for the HKEX. That would be about 22.5p. (e.g. New PE of 15 divided by current PE of 2 = 7.5. Therefore current price of 3p times 7.5 = 22.5p).
It was previously listed on NEX. Why they still show the old entry is beyond me. It is a decade out of date.
There is a lot of steady buying. Someone or some people getting in ahead of news?
Growth Company Investor rates MWE a "BUY" at 38.5p. There s a 2 page article describing their logic:
https://preferences.vitessemedia.co.uk/wp-content/uploads/sites/3/2020/06/GCI_Jun2020.pdf