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It’s not often you see an investor splashing out £15k on Itaconix shares. Unknown trade but must be a buy at 4.51p. Could good news be on the way?

So whilst 3 of my AI stocks are pumping up 10-20% in one day, back here at Itaconix there wasn’t one stock traded today. On the down side it shows that we have little market presence and zero interest. On the plus side when we are eventually discovered then the share price will fly.

PS - Keep up the good research AJP and Thordon. At least it gives us something to look at on these quiet days, weeks and months.

Crack on with the share consolidation. You’ve voted it through twice now, please deliver.

Welcome back! A great time to invest indeed.

Current low price based on assumption that won’t get any share price movement until January 2024 trading update but if the share consolidation happens before then that could prompt significant movement.

Either way just a matter of patience I feel.

The share price is cheap when you consider that the 10m fund raise is sat on the company’s book so it’s not like it’s disappeared into a black hole. It’s working capital which will fund the impressive growth targets the company has set and enable the transition to profit next year. It’s also a much smarter way to fund the company than loans which incur a lot of interest.

However, the problem is all about market perception and demand for shares. Also the company doesn’t need to attract new investors as it has all the investment it needs. It’s a long term play and I’m just locking my shares away and waiting patiently for all the positive reasons you have laid out below. If there is any more selling from investors who aren’t willing to wait it out and the share price dips below 4p to buy then I will add.

Hi AJP all solid points and the reason is LTH’s are invested here.

In terms of share price I think the fund raise was a double edged sword. It was absolutely necessary to enable the company to fulfil its growth potential moving forward. But until that growth potential is realised it has effectively diluted the value of shares. As the income continues to grow at its impressive rate the share value will rise. I suspect that may not be until the January 2024 trading report unless the share consolidation takes place and has the desired effect of pulling in new investors.

Thanks Molson and agree with your comments. I think the only way the share price will get moving up quicker is if the planned consolidation has the desired effect pulling in US investors. For now I’m locking my existing shares away in the draw and will add if I can buy sub 4 pence which looks ridiculously possible in the short term.

On Itaconix titled “Strong H1 trading”. I wondered if they had changed their price target?

There will always be a pool of traders happy to make 5-10% on the trading update. Recently you could have bought at 4.0p so to sell at 4.2p is a quick 5%.

Also there will be a portion of shareholders selling today thinking that the next significant update will be January 2024. Sept 2023 just puts more meat on the bones of today’s H1 update.

However, I personally believe that on the back of today’s very positive TU which shows the company is delivering on its projected revenue growth and progress to profitability, combined with the upcoming share consolidation, that there will be upward progression in share price during the second half of this year. Throw in a couple of unexpected RNS business wins and the current share price really does look a fantastic entry point.

Yes I thought that this was the most interesting part of this morning’s update and to be honest I was quite pleased when I read it. I think they realised it was affecting profit margins too much to strive to be 100% bio-based and clearly the demand isn’t there for this level of sustainability. I think this will help profit margins

I think the FinnCap Morning Update this morning paints a very accurate picture “The shares remain at a very attractive level in advance of the expected growth over the next few years.”

I read this as now is the time to buy and hold for 1 - 3 years. The company has gained a lot of credibility with this TU as it proves they are on course to deliver their substantial projected growth and with it profitability,

£4m H1 revenue and improved gross profit margin show that the company is delivering what it promised. H2 and beyond are shaping up very nicely with the full benefit from the £10m fund raise still to come. Gross profit margins will continue to improve as revenue continues its impressive rate of growth. Excellent start to the year.

“Overall gross profit margin for the first six months exceeded that of the full year for 2022 due to higher product volumes and more stable raw material costs.”

Does anyone else have a suspicion that ITX shares were shorted these past couple of weeks. With no bad news reported and no financial risk to worry about since the £10m raise it seems very odd to me that the price would drop prior to a trading update.

My suspicion is that short term traders want to get in cheap (4p) and make a quick buck on the trading update.

Not that any of this matters to long term holders.

Last years trading update was 13th July so high chance it will be next Wednesday

We know we have an update coming in a couple of weeks so looking forward to that.

I’m gob smacked that someone would sell at 3.9p when the trading update is around the corner

Share consolidation proposal passed at today’s AGM as expected.

Bit annoyed that they didn’t state the date for the H1 trading date which they stated at last year’s AGM

So that’s another 50,000 added over today and yesterday. Today’s 27,306 buy at 4.23p just too good to ignore.

On Wednesday we should get 3 important pieces of news in two RNS (one before and one after the AGM):

1. John Shaw AGM statement which last year included an update on H1

2. Date of the H1 trading update

3. Results of the AGM including the vote on the 50:1 consolidation which we hope opens up the US market at a time tech stocks are booming.

Today’s latest interest rate hike by BoE will do nothing to help U.K. stocks and shares. With core inflation at 8.7% it’s clear we are in for high interest rates for some time to come and that will ultimately trigger a downturn in the U.K. economy and possible recession. Different story across the Pond where interest rates have probably peaked despite the Fed trying to make out otherwise. Now would be a very good time for Itaconix to move to a US exchange

I agree!

Really great opportunity at this price. It’s unfortunate that the share price got caught in a bear market during the last 18 months but a new bull market is emerging to coincide with the massive expansion of ITX with the £10m investment.

I’m not sure how much of that expansion we will see in the H1 trading update next month, but we should certainly see its impact in H2. Next January may feel ages away but it will be here sooner than you know it.