Member Info for ShearClass

It's dropped because the IPO price was far too aggressive. Even in 2024 this is forecast to lose £5.9m, they've got current gross margins of just 25%. The saving grace is the balance sheet with £82.6m cash at 30/06, so there is no danger financially, it's just hard to know what metric to value this on?

If it's recurring revenue then the current levels are paltry;

"At the end of the half year we had 18,732 commercial units installed and able to communicate, an increase from 13,175 from 30 June 2021 and 16,005 from 31 December 2021. Currently only Commercial units generate revenues and these revenues had increased by 91% to £0.8 million from H1 2021. The average recurring revenue per unit (the KPI we use for these revenues) improved from £30/unit to £41/unit as we grew our share of usage revenues, (where we act as the charge point operator on behalf of the customer and owner of the charge point units)."

The only thing that will stop the freefall is evidence of leveraging their home unit base to increase recurring revenue, of which there is currently none.

Otherwise they are simply selling low margin charging points in a mega competitive marketplace with gross margins barely covering labour costs.

At 207p it's another horrendous IC tip.

The €300k cash burn a month doesn't seem quite right based on the cash usage from Jan - Jun though... €7.8m at 31/12 to €4.9m at 30/06 is nearer €500k per month which would give them 10 months cash from July onwards. This was the main thing that surprised me, although it does make sense with their US hires and headcount growth. Agree that the owners stake should ensure they do a good deal, my only concern is that they don't raise enough because they want to avoid diluting themselves! Re. price movement, only shore capital have dropped the ask below 10p at present so it won't take much buying to bounce back...

The new worlds are fantastic, really really impressed by them. Must admit that the half year cash burn did surprise me, it also concerns me that they haven't already raised money already given how positive sentiment is in the metaverse space. The share price certainly has the feeling of being walked down in anticipation of a placing, however you'd have to think they'll receive substantial support given progress made in the last 12 months. Interesting to see what happens.

JonHarris, one tiny little tip I'll give you; ignore the LSE buys vs sells data. It's just guesswork and depends what the spread is when the trade is placed. If there share price is down there have been more sells than buys, that's how a market works. A CFO leaving a company that has a 6% short position is always going to result in fresh downside - this is common sense.

“Anybody know how these MMs work?”

Yes, they make the market by providing liquidity. They make their money on the spread between bid and ask. I very much doubt that those trades are between market makers, if they wanted to transfer stock they would do so either during an infra day auction (11am, 2pm) or the closing uncrossing auction.

I think it’s institutional buying - the bid has been really strong today and they’ve been happy to absorb some big sells which suggests someone is hoovering them up. No surprise given there were large placings at 175p & 100p over the last 18 months, the company appear better placed than ever yet is trading at a mere 20% of its all time high. Quite why anyones selling down here is beyond me - it’s become a scourge of AIM. The difference vs the ASX ridiculous, holding when shares break out of a downtrend should be a no brainer…

It'll be lower than 5p if they leave a cash raise until December! It's madness that they've left it this long to be honest, I'll be very interested in any announcement that does land but until that point it's univestable...

Why are they a different kettle of fish in the short term?

- CFO's of both companies are leaving / have left

- Both companies have moved from a net cash to net debt position

- Both companies have significantly increased their stock / inventory balances

I see the building inventory to reduce the potential impact of supply chain disruption as a dangerous game for fast fashion, how much of this excess stock will need to be sold at a discount?

In my opinion MA won't touch it until it's in severe distress, that's his MO.

It is absolutely justified, it adds significant internal uncertainty at a time of maximum market uncertainty. I'm waiting for a further 50% fall before considering a purchase here, just look at recent events at REVB - big buyers don't get interested until bargain levels, those haven't arrived yet for ASC IMO.

@pop31, it could definitely reach £30 a share if thermal coal spot prices hit new highs this winter & Transnet improve their service and allow TGA to hit the top end of their forecast. I'm treating it as a dividend play for sure though, anything else is a bonus!

Re. Tiger179's questions;

The JSE price is the the driver of LSE, so take no notice of reported buys / sells on LSE and their impact on the share price as they have none.

Why sell on news? This share is exceptionally volatile and even last week swung down to £12.80, I suspect many of the sellers will be swing trading this volatility. There is also the ever present danger of a sudden coal price correction and significant share price fall if there is positive news on Ukraine - Russia.

The fact is everyone needs to have their own strategy and manage risk accordingly, if that's buy and hold with a lower number of shares, trading around a core holding or out and out swing trading then so be it. It's always happened and always will!

Suspect we'll see this holding pattern continue for a few days yet, once the broker option has closed next Wed then the source of cheap shares will be gone. Have added a few more as I think this will rally strongly once it's broken the current deadlock at 145p.

"In addition, the Company has granted a Broker Option which will be available until 4:45 p.m. on 17 August 2022 and is subject to the terms and conditions set out in Appendix I to this Announcement."

Pop31, it is a given - it's confirmed in the 13th June RNS...

"Thungela's capital allocation policy remains unchanged, and the Board accordingly remains committed to return additional cash to shareholders above the targeted minimum pay-out ratio of 30% of Adjusted operating free cash flow5. With this in mind, the Company expects to declare an interim dividend for the six-month period ending 30 June 2022 at the release of its interim results on or about 15 August 2022."

Yep still here, please post away. I’ll try to do some digging this weekend.

It uncrossed at 12.85 for 394 shares because there was nothing on the sell side to match the open buys.

The auction closed with 445k of buys at 12p unfulfilled and the nearest sell order was 30k at 14p

If Jupiter have been cleared this afternoon then this could bounce significantly, the way it rose in the last half an hour suggests they could be history...

Agree on the US buyer, they likely woke up and saw the 50% discount and couldn’t believe their luck. Significant block buying on the book at 10p, it’s being met with sells at present but those won’t last forever.

Now you can buy and sell at 9p vs an advertised bid of 8p... the worm is perhaps turning.

The book is definitely tightening up again, you could buy 500k 20 mins ago for 8.75p, now the max buy is 100k. I do think this is drastically oversold now,. Just as I type that a 6.9k sell has been printed... that's more like it if we want to get Jupiter out.

The multiple 250k chunks taken at 17-18p in the last half hour were the first really aggressive buying that we’ve seen since the big drop occurred. The time of day + the fact the US markets were bouncing on positive inflation news makes me think it was a US buyer. Let’s hope it continues tomorrow.

Extremely comfortable, hilarious that you don’t seem to have a clue why you’ve bought - do some research!