Member Info for Simms45

I am investing in the future and not the past. Firstly £7.5m cash balance dispels any comprehension of a rights issue or anything worse. 100k cash burn means they can put their head above the parapet and work on executing the new premium wellness strategy and let 3rd parties help with some of the heavy lifting and sell some Eve mattresses. As you should be aware scales of economy normally kickin for companies over their fixed costs so i suspect each bed they sell improves overall margins as long as they dont increase other costs. Eve has nailed costs down and continue to reduce costs so unless the RNS is incorrect that is heading in the right direction. Most of what i say is pulled from the RNS with my interpretation and what is relevant to my investing interests. Obviously dyor and buy or sell but i am confident that post final results next month there will be a spring in their step and that should reflect that Eve is not a £4m business but something approaching £10m for starters.

I think the moons are aligning in that a combination of hard cost cutting reported in Q4 onwards, coupled with higher margins and reduction in competition on its own tells a story that should result in a compelling future change. From their recent release they said "deliver a significant EBITDA improvement in 2020" so i am confident that remains the case so while eoy results will be a loss overall they should hopefully announce the turnaround and profitability going forward. I am particularly keen on the new CEO that just started on June 1st, previously CMO, and her focus to widen the brand to the sleep wellness market and leverage its brand beyond mattresses and also to focus on selling through traditional retail that can help reduce marketing costs further. That is very smart. Eve can now leverage its brand to get into Argos, Dunelm and Homebase that will provide a nice tick over. Many more will follow imho.
The brand value alone is worth a good amount to the right acquirer as Eve has spent many tens of millions so i am hopeful that the final reports will paint a profitable future. Need to also remember the Woodford overhang is over and that has been an enormous weight on the share price so my position is £4m market cap for a £25m turnover company, close to profitability with £7.5m in the bank is a good place to be.

i have noticed LSE has been very slack with getting RNS up on the site quickly. this was released on LondonStockExchange at 11.39 and still not showing. However it simply confirms trading update for the six months ended 30 June 2020 on Wednesday 22 July. We can expect a good move forward over coming weeks as the trading update will only confirm that things are progressing well and if they throw in future potential for profit we could be flying as its hard to imagine that a company once valued at £120m with a top selling mattress business has fallen to £4m with a £7.5m bank balance and a considerably improving outlook with massively reduced overheads and strong sales in the hybrid range of mattress with a brand that has been built up over many years.

ok. just to cap it off when the 750k was bought and we rose to 1.01 the seller just added another 750k to sell at 1p. This has been going on for sometime now. Cant be too long hopefully before they they run out of stock.

Someone failed to tell that to the seller who is happily offloading stock today :) Lets hope they comfortably get this over the line!

Just look at these nonsense "A" automated trades. Exact same number of shares being bought and then rapidly being sold. Either someone likes to lose money on trades or something else is going on as these silly automated trades are confusing pis in my opinion.
23-Jun-20 10:42:46 0.962 10,000 Sell* 0.962 1.01 96.20 A
23-Jun-20 10:42:46 0.962 23,000 Sell* 0.962 1.01 221.26 A
23-Jun-20 10:41:48 1.01 23,000 Buy* 0.962 1.01 232.30 A
23-Jun-20 10:39:11 1.01 10,000 Buy* 0.962 1.01 101.00 A
Anyway enough on the conspiracy theories and lets look forward to a few RNSs in the immediate future (Saudi Maiden and tightening on ANS funds) that should smash this share price out of the park.

Pretty much all buys today. One thing you can probably be sure of is a relatively leaky bucket from the ANS consortium so increased in activity is probably a sign of good things to come. Just need £40k of buys and we will move up to 1.1p and then hopefully the bod/offer spread will narrow as that is also too wide.

Some good momentum so far today and is long overdue frankly. All stock for sale at 1p is gone so far so be interesting if more is brought back. if not that could the start of a good uplift coming.

That would make a lot of sense. If it is such a no brainer and the board are now able to buy shares openly surely they would show that confidence and buy some and at the same time keep the share price from missing the market cap rules, which would be a ridiculous own goal if that happened.

Our share price manipulator is simply not letting the price go above 1p. Who is it? I have recently bought some and immediately i noticed more tanks of shares were parked at 1p and they doubled down on offering 500k per point instead of 250k just in case i tried to buy higher numbers. The reason i suggest it is some form of manipulation is the way they have put in the fire break of 500k per point as that is not a normal seller but someone who is trying to keep the stock from rising. At the same time i am not complaining as subject to more newsflow this seller will be taken out but it does test your sanity as to what is going on.

1 750,000 08:43
1.01 500,000 05:00
1.02 500,000 05:00
1.03 500,000 05:00
1.04 500,000 05:00
1.05 500,000 05:00
1.06 500,000 05:00
1.07 500,000 05:00
1.08 500,000 05:00
1.09 500,000 05:00
1.1 500,000 05:00

All looks very promising. I hope they do not drop the ball as they need to have in place some process to buy up small pis holdings as if CNEL do not hit the £50m valuation it is not happening so be interesting to see what they plan to do to achieve that. Clearly we all know CNEL is worth considerably more on HK but it needs to get there first. You might have expected todays news to have seen a positive rise in the share price but it looks that small pis are exiting, which was always my concern and why i hoped that the BOD would be using some of its £26m of cash to simultaneously do a share buyback or similar so they do not accidentally miss the market cap. Why would HK investors buy at 11p when they can but at 5p today? Short-term i have concerns but assuming they make it to HK i will be very happy.

Reading below July 2nd might now be the next option if Tribals get their way in court to get added to ballot :

https://www.bloomberg.com/news/articles/2020-06-22/california-to-pull-sports-betting-bill-after-tribal-opposition

“While indicating that it’s possible that a change allows them to get on the 2020 ballot, the tribal coalition is requesting an extension of the July 20 deadline to submit signatures for 2022.

Given the urgency of the case, the Superior Court of California set a hearing for July 2. If the lawsuit fails, the tribes could still put the initiative on the ballot in 2022. But they would have to start over on the signature collecting, a costly proposition.”

Quite a compelling low market cap for Eve but what is the consensus on who out of the large number of pure play mattress sellers that complete will still be standing. For example Emma, Simba, Casper, Otty, Nectar to name a few. What do people see as Eves competitive position compared to these companies?

Certainly a shame Dodds did not get this to the table tomorrow. Although it does seem to point to 2023 there was some hope the Tribals might bring their bill to the public vote this November using their Covid card that they could not get enough signatures. Fundamentally Webis is well undervalued and the likes of WH and other suitors move slowly so there is every chance Webis will find a strategic investor this year in readiness for that. not great short-term but medium term this is still a great ticket.

The first MM is offering shares to sell at 1.1p. However before this is a trader who is willing to sell you 684k of shares at 1p and then 250k of shares for every .01p. if this seller was not lurking this would have jumped to 1.1p and then upwards where MMs are willing to sell you shares. However someone has reason to keep a lid on things and until a lot more buying commences to take this seller out we are stuck at 1p as MMs are not even getting a look into. someone else is holding the price tightly. Well that is how i see it.

I guess the expectation is to confirm some of the Kefi RNS points including something in regards to the road/power build photos based on EG investment unfolding, new security gate for Kefi but for me its very positive the company is responsive to investor enquiries and will do what they can. Helps show that Tulu Kapi is the roll. Still i would add that someone really does not want this share to rise as someone is putting up shares to keep this stock at 1p. Level 2 rarely ever shows anything except for MM normal activity so Kefi stands out to me especially given we are so close to a very big re-rating. Could be nothing but together with all these tiny order going through someone looks to have a vested interest is holding the share price from getting away.
1 684,000 10:07
1.02 250,000 05:00
1.03 250,000 05:00
1.04 250,000 05:00
1.05 250,000 05:00
1.06 250,000 05:00
1.07 250,000 05:00
1.08 250,000 05:00
1.09 250,000 05:00
1.1 250,000 05:00

if and, i would say, when we get Tuesday vote next question will be market valuation estimates for Webis. What i like to remind myself is Webis has basically done all the heavy lifting organising all the licenses in a number of states and i would say creating a "hit the ground" running shell for someone like WH or someone else to JV or outright buy for serious money. We know that sports betting under Dodds/Tribals means they will need to take place within these operations for at least 1-2 years so Webis will have an almost oligopoly to corner the market. Other entrants will need to pay $10m a license + legals fees (that Webis already has) and wait probably 1-2 years even to be allowed once they have a license because of the staggered nature of the Dodds bill. Today we are only valued today at £12m so that is laughable. Take out the $10m value of the license alone for California and you are left with £2m for half a dozen other US licenses and a business that has built a successful business. £50m is a good starting point.

"In terms of strategy, the repeal of PASPA in May 2018 was something of a game changer for Webis Holdings plc. As expected, there is a huge focus on the USA as the land of opportunity for expanded gaming, especially with very tough competitive conditions for operators in many other jurisdictions, especially in the UK. As a result, the company has had no shortage of informal offers from other interested parties in the space, specifically in the areas of software deals, strategic alliances and, at the operating company level only, mergers and even acquisition. The Board continues to assess all these avenues for the benefit of shareholders but is aware that the increasing suite of USA licences, together with our USA established operations and relationships, have created a significant asset, and one that should not be undervalued. We will keep shareholders fully informed on developments in this area in line with market regulations."

Asked Investor Relations to update photos on website to show works being completed around the site as per the RNS and looks positive so hopefully they can find some or get some done and upload and perhaps twist few a few other Kefi Investors this is happening and not some lifestyle business for Harry :)

"I've forwarded your suggestion as it would be good to publish some photos of work being done at and around Tulu Kapi."

i am still amazed that Kefi is valued at £18m today when we know from the latest RNS that once the ANS crowd or someone else gets this over the line just the NPV on Kefi at $1800 a barrel is £175m sterling. That is 10x the current market cap and that is not half the story because Saudi Arabia is due its maiden resource and Harry considers this to be biggie, similar in potential size to the largest Copper/Gold mine in Saudia Arabia sold for over $1bn and we have a deep pocketed partner who will probably pay all build costs and Kefi will have a nice ride or offer a healthy potential cash injection if Kefi sells a litte of our share. Bear in mind Kefi is fully paid up to mine build for Ethiopia already. There is no further dilution subject to ANS putting in their first payment, which in some ways is relatively small change at something like $10m. When Kefi this moves i suspect it will move at speed and we will see a very fast rise. Lets see what the next RNS brings as each one is tightening up the loose ends. So far nothing has changed the October build date so that is still on.

As several articles point out possibility Tribes proposal also makes its way onto November ballot. Both are boom time for Webis so we do not care. However i doubt it will though but maybe good idea to make them think that while Dodds gets his bill rubber stamped by his mates tomorrow :)

Very odd they should make this public as normally rights issues are dilutive and discounted. Cant remember the last rights issue i was on the receiving end where i did well out of it. If it turns out to be correct i would expect a large downward pressure tomorrow in anticipation. On getting the funds (assuming long term investors) and no warrants etc it will turn out well in medium term and provide more firepower. IAG might need to step in with a RNS to dispell or not the rumour.