At 1p if the funding was sorted the expectations were this would go to 3 to 5p range and then rise further as the company revenues, product lines etc grow. So at 0.25p with finances sorted 0.5p is equipment to 2p so most will expect 1p to 2p as an early target with much higher for those who believe in the company rather than a trading opportunity- so I think traders will want over 1p to start selling and institutional buyers and LTHs have eyes set on much higher targets - imo
We’re trading well above 0.25p because it was waiting for funding news to rise significantly - it’s been in mid 30ps before Woodford was a forced seller - maybe 40p plus target is now 10p plus target because of dilution but still lot of potential here for rises I hope
So if directors can’t BUY because they are in a closed period- but have told us they will BUY once results are released- then presumably the results and news flow is good and they are expecting the placing levels to be very profitable- for the rest of us - at least if news flow now positive with no financial concerns it means we have a route upwards
What makes this so exciting is yesterday’s RNS raises the prospect of new on finance deal to imminent and on top of that growth news on products and new pharma tie ups - what else is offering such a mouth watering mix of opportunities right now - as well as excellent medium to long term growth?
Great RNS today - there has never been any issues here with the products and huge potential- sp down at these levels due to run of bad luck that was not of TRX making- but now that means the upside from here is breathtaking imo
As pleased as I am that another big pharmaceutical have picked us (following due diligence) and sp is rightfully re-rating - I’m here for 40p plus - even if that takes a few years- not be selling for 10p in the short term that’s for sure !!
Risk / Reward - risk is they need funds - however fast expansion will provide confidence to lenders to extend loan facilities. Reward - sp is only 1p for a company at the forefront of industry worth billions - sp has been significantly higher and could multi bag numerous times over
This was comfortable above 30p before Neil Woodford, who was a massive believer, unfortunately became a forced seller. TRX have to build the sp all over again now - but from these levels what an amazing opportunity I think
Today’s RNS says new collaboration will increase revenues without impacting other product lines due to the expansion of facilities. TRX will have had to share how they will finance the company to close these agreements- whether that be self financing through increased revenues or an extended loan facility. The fact is they are accelerating growth and the sp is not even close to reflecting any of this yet imo.