Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
I think the ODX and AVCT announcements today underline what value there is here. Market caps of £100m and £300m respectively.
Both companies are still talking about products being developed, and one has made a £100k sale.
Novacyt is selling £40m a month and the market cap is £160m.
You're thinking along the same lines as me. I know there are all sorts of reasons for deep pullbacks, a single seller can decimate a share, but here we have high sales visibility and profitability.
They had margins of around 50% and with increased scale they may have made economies there. If they are shifting the full 10m and making just £2 a test (will be way more than this) that's adding £20m to the cash pile every month.
I'm not suggesting this is going to go on forever but the cash balance is going to catch up with the market cap pretty quickly.
Then you've got the original business which has now had possibly the most spectacular level of free PR a company could hope for and hundreds of new customers.
The only thing I don't understand at the moment is why someone would buy one thing from ARS for more than its market cap. Surely it would be more cost effective to buy out the company? I appreciate it's not always easy to do that but to get their money's worth it would certainly make sense to at least stake build before sending in the offer.
My money is on another joint venture being announced early next week. It must be hard for the management handling all the inbound enquiries and signing deals at the same time as trying to develop a world-leading test.
Being dragged down by the wider market. Initially bought in around 40p but I’ve taken the chance for a small top up. Once the dust settles in a few weeks I will wish I had bought more but still need to be sensible.
I’ve got a client who services all the big online casino firms and apparently business is going crazy so I’ve been adding here for the past couple of days.
There’s also this virtual sports stuff that is coming out and plugging some of the gap.
Incredible discount and still the possibility of an all cash bid from the US. I’ve been adding.
A couple of you guys have got it spot on. The margins in groceries are tiny. So imagine the margins in providing a pick, pack and delivery service to a customer who has no margin to play with themselves. This needs to halve. And then halve again. And it will still be overvalued.
It opens the door to more institutional holders who would love to own something that yields as much as CAML. I'm very happy with this deal, it's exactly what the company needed and they seem to be executing it well.
Obviously leaked as had a good rise and then not much reaction today. Good appointment for the longer term though so I've doubled up today.
Just noticed this in the results, in reference to the bonds. > As part of this review process, the Board is engaging with its major stakeholders whose views will be taken into consideration.
Not much new in there. Would have liked to have seen something about further disposals or a plan for the bonds. Panmure out with a BUY rating already though.
Chart here looks great, 260 first stop.
You can go long or short on a spreadbet. I personally think it has retraced enough and should bounce back from here.