Member Info for ShearClass

Yesterday & this mornings buyers have been taken to the cleaners here. I wouldn't be surprised to see it fall back below 8p in the coming weeks unless there is more news, as PI's sell out for other rainbows. A one to keep an eye on, but nothing more than that until they provide timescales for their production plans - the one thing sorely missing from a very interesting presentation on their website.

Just read the RNS released yesterday, never a fan of none financial earn out targets, and even less of a fan of deferred consideration being paid out in cash! Take a look at The Panoply to see how it should be done... Very disappointing newsflow & performance since IPO.

"Since acquisition, Horizon's platform MicroGuide has grown revenue and delivered +32.0% YoY growth in registered users and +44% YoY growth in guideline page views as at 27 August 2020.

As part of the purchase agreement and as a result of Horizon achieving its earn-out target, a deferred contingent consideration of £1.5 million will be paid in cash."

NASDAQ has looked much better the last few days, currently up at $15.50, so an 11% rise from last weeks lows.

One undiscussed aspect that has impacted the SP significantly since the IPO has been the depreciating dollar. The conversion rate at listing was GBP : USD 1 : 1.2563. Today it is 1 : 1.336

So at listing the current NASDAQ price of $15.50 would have equated to £6.17, whereas now it is just £5.80.

So a significant drag on the price of ~ 6% , particularly as the US drives the price now (at least certainly to the downside...!)

Ha, I'd always followed the other thread so hadn't seen the comments late last year from Bernhard LOL

"For a company committed to investing in the great new blockchain world nothing much happens does it? A really boring share with few trades, no action, no interest and no money to be made by shareholders. If I wasn't already down a lot I'd get the hell out."

Such a boring share, only turning a $950k investment in Polkadot into $20m+ and another 8x return inside 6 months announced today with Acala! These guys are on a different level, super happy to be in here, upside could be spectacular.

@Ghia, I've also bought another chunk after reading that hatchet job! Truly comical, makes you wonder if Steve Goodacre publishes under the pseudonym "Anna Sokolidou"...

"At this rate the company should consider its options."

So 5 weeks into a NASDAQ listing, you think they should consider de-listing and moving back to AIM because the price hasn't doubled? Maybe you should email the RENX board with you concerns and see what they reply with? Maybe title your email "why doesn't your share price go up in a straight line?"

RENX is a long term investment, and the 2 RNS's released in the last week confirm they are on the right track to achieve their potential (and more). Frankly, who cares about short term price movements? If they execute their strategy, the share price will take care of itself.

As per yesterday the value of their top 5 assets was around £32m (Polkadot, Cosmos, Nexus Mutual, Dfinity, RocketPool) So the current MC of £20m is still a very significant discount, before you even consider that they could be valued on a P/E of 10 for the staking revenues alone.

NAV top 5 projects : £32m
NAV other tokens / projects (33 in total!) - in for free

Staking yields per annum : £2m , PE of 10 (prudent), value of £20m

Fair value estimate : £52m / 40p per share.

This should just be the start of a re-rate IMO.

Just a matter of time / patience I think, 30-50p per month between now & Christmas to continue the re-rate would do nicely.

Either spread bets or worked buys / sells I believe, impossible to interpret though.

Currently 5.4p to buy and 5.42p to sell...so don't be fooled into thinking the trades printed are sells. Think they're trying to fill orders from the rise this morning.

Looked like someone used the liquidity on Friday's RNS to dump some on the NASDAQ, because volume is relatively low this crashed the price back to $14... It's just a patience game, once the US investors do their research they'll eat up the free float and we'll rise higher. The AZN collaboration should help to get us more on the radar, and hopefully much more to follow.

“its existing cash resources are now expected to be sufficient until into early quarter four 2020”

Cutting it a bit fine aren’t they?? Any expectations on how much they might raise?

Indeed, my bet would be on Bio-Techne for a few billion dollars given the scale of what they are building. For readers this isn't a complete punt - the RENX CEO sold his previous company to Bio-Techne for $500m a few years back, and they are currently collaborating very closely on the Kantaro antibody test. For AIM this company is simply different class.

@Ragnar, nice work on the analysis, that's very useful indeed in explaining the current differences in valuation. Going back a couple of years LOOP at £5 had a similar EV to sales ratio as Pexip does now, and I agree that in order for LOOP to get back to that valuation they'll need to execute their growth plans over a number of successive periods & build a story for investors to latch onto.

The presentation on the 29th was a very good start down this path, the interims in the next few weeks will reaffirm the turnaround story & flag LOOP to more investors, and I fully expect an earnings upgrade as they are surely well ahead of the current £55m forecast.

@Haha, no worries - I'm not aware of NASDAQ listed comparables but will have a look today, the current dip looks like a good top up opportunity based on the chart & current momentum.

Yep, and sets up for future involvement in cardiovascular & metabolic disease strategy with AZN, I image we would be compensated via a significant royalty on any new drug development.

Also a very significant endorsement of the KindneyIntelX platform, and adds to the 30th June data sharing agreement with an unnamed top 10 global pharma. I'd imagine the other global pharma giants will be looking to get involved at some point to avoid being at a competitive disadvantage...

What's wrong with the Pexip comparable? Unsure of why you want more companies to compare if you can't be bothered to discuss the example provided...

Agree, but I was using current forecast figures to illustrate the point. Either way things look rosy here...

Probably the only other listed comparable are Pexip who listed earlier this year on the Norwegian market.

Their Q2 results were released last week;

https://websolutions.ne.cision.com/releaseDetail.html?releaseIdentifier=D4370E688FFC8AD6

They quote that their contracted annual recurring income at the end of Q2 was $65m, and they have a target of $300m ARR by 2025. Their growth rate is impressive at 64%.

However their current market cap is NOK8.7b / £745m, putting them on an EV to sales of well in excess of 10. LOOP at its current market cap of £135m is on an EV to sales of 2.4 (assuming £55m sales in 2020).

Plenty of room to grow then, I don’t see why LOOP can’t reach 5 x EV to sales, (which coincidentally would be £5, as they have 55m shares in issue & sales are forecast to be £55m!). That also represents the high reached in 2018/19, so technically this would make sense as a medium term target.

£14m was raised in April - with the express purpose of scaling up production & getting through the trials. Not a chance they'll raise mid way through negotiating the next steps with regulators / pharma's, far too messy. Venrock buying on the open market was also clear evidence that SNG don't need cash

I think the 250k block buying and rise has been accelerated by the NY Times article posted here (and published) yesterday https://www.nytimes.com/2020/08/18/health/Covid-treatments-remdesivir.html

We're in the shop window like never before; our nebulised version of IFN-b is pretty unique by all accounts and could be hugely valuable. The fact we are still at £380m market cap will amaze the US buyers, if this was on the NASDAQ it could easily be in the £1-2b range on potential alone IMO.