The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Risk is Reward
He will not provide Financial statements via a Q&A. He will do this via either an interim or FY update. He could of course do via another RNS such as "financing update" but realistically this would only be bad news - i.e. justifying the need to raise or borrow.
I think we are so close to increasing revenues and operational profit now that he will wait for then hope that that teh sp is significantly better then raise. If it is not then my Q was would we just hold off on growth or be forced to raise at a cheaper SP than we regard fair value. The fact that we will be able to cover costs in the very near future means we can make the choice rather than be forced into an unfavorable situation.
Hmmmm, I kind of disagree with the phrasing "some real issues here about who owns what"..
I think that is clear is it not? Shishir owns 30% of TGR and 100% of TSG. If approved under old terms TGR would own TSG and Shishir would own 50% of TGR?
I found it really useful to hear Shishir use corporate governance as the reason a penny has not gone to TSG. This is main market so we can be confident the external audit will validate this. I was getting worries that a lack of professionalism had occurred but I now think not.
For me the issue is one that has existed from the beginning but I have become more sensitive to in recent weeks which is that in the ideal world the person who owns 30% should not also be the executive of the business. This marks down the investment case for me but because it is such a good investment case I still have it as the biggest in my PF - It would simply be bigger if the owner took a back seat and employed an independent CEO.
Is this when we all start to feel a little stupid for not hoovering up shares at 22.5p last week. We all knew it was crazy low but it is so hard to stick with conviction when this happens. I made a small buy at 22.5 having stopped incessantly topping up once it dropped through 30. Lost my nerve pre presentation and sold at the top ups at 24p ha ha.
Still a positive couple of days although we should be careful not to celebrate 35p too much... It was only a few weeks ago that 35p seemed too cheap and we have had positive updates since then.
You are right. Not hugely researched as not been invested for nearly a year. Still get the RNS notifications though. So does that mean Newcrest can’t buy 5% at $60m and if they can why are they getting a price based on 7 months ago?
Based on a $60m valuation of 5% of Havieron this values GGP’ 30% stake at $360m which is approx £288m.
This against a market cap of £443m. So is GGP worth £155m If we had no Havieron, and no current j/v?
I don’t have the answer to that but that is the question to answer before deciding if undervalued or not.
I would suggest that You would ideally have Havieron covering much more of the mcap. This is based on many regular posts on here that often suggest we are undervalued on Havieron alone…. Well turns out not.
My follow up question would be:
Unsure how we invest in all the near term projects and stick to the commitment not to raise equity at a low SP in the event the SP stays low... Surely at some point one of these 2 commitments gets tested? Unless SP rises significantly which would be great but not guaranteed....
They say they have multiple offers for funding which for now I will take at face value and it seems promising.....
My issue is that when new projects such as this ender the pipeline they reference the revenue they expect to make. It would be good to understand what profit... No good generating $10m a year revs if it will cost $9.99m to operate. What margin do we think EQT is outside of fixed centralised costs?
I am only just waking up to some of this TGR vs TSG conflict.... My bad..... But even before the merger looked shaky as per last RNS surely it was not legal for TGR (a company with 30% Poddar ownership) money being handed over to TSG (a company with 100% Poddar ownership). How was this allowed to happen?
Likewise as you have touched on. Why did the ticker for TGR get RNS news and updates for things that were happening at TSG when we had no ownership of TSG.
Regardless of whether merger goes ahead, motives etc is any of this legal or within corporate governance guidelines?
Big red flag to me that we have a 30% owner who is also our executive leader (should be distinct from one another) and is also the owner of a separate company that we are merging with.
Sometimes there is value when the LOndon stock exchange website gets an RNS out quicker but otherwise it is just spam clogging up the page and what’s more you read it on the off chance there is a personal opinion at the end…. Appreciate this is now also spam!!
Why do people copy and paste RNS’s on these forums when it is clearly available on the same web page?
Computer spot on again. RNS after RNS using acronym after acronym telling us that basically not a lot is happening.
I think EQT should challenge themselves to not release an RNS until they have an absolute game changing announcement (one preferably involving income). See if they can do it without breaking corporate governance.
Every RNS we receive until then we should ask “if they hadn’t told us this would they be in breach of corporate governance?” I.e. not updating the market in a material change as soon as practicably possible. I would say they could easily have not sent these 2 RNS’s and not been in breach. How many other unnecessary waffles have we had?
Let’s play a game. Every RNS from now on we have to state Waffle or Material (inc legal req such as director dealings)
Agree Mhow. You can’t really do an RNS which says “we have no current plans for a equity raise and nor will we whilst the share price is this low”. The only way you could do that would be to start the RNS with “in response to speculation” but their isn’t wide media or analyst speculation of this it is just hysteria on a BB (me included in this). Therefore the best way to approach this is to set up a public and recorded meeting where they can confirm that this in response to a Q&A.
Hopefully they do not use it to create more fear or uncertainty on something else (delays, missed targets etc) but they can’t do that without an RNS (not sure what the rules are on telling us and then publishing an RNS at 7am the next day before market opens?).
In general Investor Meets are not done to deliberately deliver bad news. Where the SP can crash on the back of an investor meet is a lacklustre presentation (TGR don’t have this problem) or reading between the lines correctly or incorrectly… always a risk here.
ATB
Can someone advise how we sign up to this please.
Money turns up with his first EQT post on Friday (presumably having bought what he thought was a cheap entry) and then starts abusing posters who have been here for 2 years about trying to create a cheaper way entry….
Were you hoping for that 20% bounce Mike?? Oooops. For the record I believe only the most illiquid small caps (sub £10m and maybe only 0.25% share cap traded daily) can be influenced by a BB such as this.
Problem here is 2 fold at the moment in my opinion. Firstly the number of RNS waffle (lots of “how” which is immaterial and does not merit an RNS but not a enough “what” and “when” which tends to me far more material to sp)
Secondly and more significantly there is now serious doubts over the BoD ability, integrity or both. You can have the best idea in the world but it will not make you rich with poor execution. If Apple had been run by poor business men do you think we would know what an iPad is today?
Mike you are half right. When I sold at 0.75 I did stay close to the stock thinking a 0.45 would bring me back but I did not buy last week largely because of point 2 above (point 1 was already known.).
I think rather than looking for cheap entry I would now prefer to pay a small premium but for it to E because significant progress has been made and the BoD have begun to recover their reputation.
ATB
Thanks Glengarth
As a side note I have just had my reply from Shishir who for me, like with everyone else, has confirmed there will be no placing at current levels of SP.
He also say that by turning the bottom line to green should mean no distressed placings are required (I guess they will be able to cover costs but would still consider placings in a stronger environment to accelerate growth?)
He finishes by saying they will look at how they communicate this in the full public domain....
Hopefully sooner rather than later (my words not his!!)
I am feeling a little stupid here... Is there a difference between TPA (Tonnes per annum?) and Metric Tonnes?
I ask because I believe we are already up to capacity 12000TPA and we are waiting to complete the 18000TPA to get us to 30000....
So if TPA is the same as MT and we are at 12000TPA why didn't we produce 3000 metric tonnes in the last quarter? No one seemed bothered we didn't so I am thinking I am missing something?
Thanks
Reason I ask