The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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.
I think we are all frustrated and a little bewildered at the current share price but the fact that all the LTHs are still here talking about the progress being made, speaks volumes IMO. I’m also underwater but am probably going to add more at this price because the pattern is that it goes up to around 5.5p in the run up to the trading update so that’s a neat 20% from here, if you choose to sell a portion of those shares before the actual TU. I will likely sell half of the “additional” shares I buy this month just before the TU as a hedge bet. However I am not selling any of my core holding.
Just a note on gross margins. Itx is still at an early stage in its development so it can’t be compared to Croda and the like. Even the well established Croda took a bit of a hit in their recent TU.
Hi did everyone watch the Proactive interview with John Shaw this week which is on YouTube? I thought it was a very slick performance. The following quote really hit the mark when he described progress and what the recent fund raise means:
“we have all the resources we need to go pursue that $2.3Bn market with large potential, really exiting this phase of development with well validated revenues, well validated technology platform, great revenue horizons ahead of us”.
At this price it’s easy money knowing we have the trading update coming in a month’s time. We know we will get a rise to 5.5p in the run up so that’s potentially 20% if you are into short term trading and want to sell off before the actual TU. Or you can hold for the actual TU and if the numbers are better than expected get an even bigger rise. Worst case it goes back to the level you bought at as we know there’s very strong support at this level and the fund raise was over 5p.
Not that I will be short term trading as my targets are much much higher and I will continue to LTH
That would make the share price around £2.50 which sounds better than 50p for a 10:1 consolidation.
Given the trading update is only about a month away it amazes me that some investors have sold in the past 24 hours. But each to their own. I understand people’s frustration with the share price but after being invested a couple of years I’m not going to sell when the company has just acquired the financial fire power it needs to deliver its ambitious revenue growth which is being driven by demand for its products. Patience will win the day here.
I think we all knew that Octopus Investments and Canaccord were the top 2 institutional investors in Itaconix but what I didn’t know was that Walker Crisps Investment Management Ltd were also well invested in Itaconix. When you look through the list of institutional investors you get an idea of how well regarded Itaconix is.
Yes as these historic results albeit with a lot more detail, I wasn’t expecting much movement today. If there is to be any movement this week, that will come tomorrow afternoon on the back of the Itaconix presentation which will be focused on the future not the past.
2023E £8m
2024E £10.5m
2025E £14.7m
“Valuation. We maintain our existing 12p target price, with plenty of upside to current levels as we see additional customer wins and new applications and formulas continuing to propel customer growth.”
It was the innovation section that most got my attention. In particular:
- Velafresh SAP80 superabsorbent - to be launched
- Velasoft BR300 repair damaged hair - to be launched
- $600m addressable market in composite materials (patent pending)
“We announced that we are extending our technology platform into potential uses in composite materials, and that we had filed a new patent application, which if granted would protect innovative intellectual property for expected applications in this new area. The extension of the Itaconix technology platform is part of our work to engage with potential customers to identify unmet needs that we can address with our plant-based solutions.
We estimate that a $600m per annum addressable market exists for potential Itaconix products based on this new technology; and although the usual steps remain to advance a new product to market, we are very excited that our plant-based solutions have the potential to address major customer needs which are not being fulfilled. The patent filing marked a significant milestone in our efforts to deliver safety and sustainability to new categories of consumer products, and product research based on this patent filing has now entered the next stage of commercial development.”
Totally agree Bod.
It will take time to put the £10m cash injection to full effect. What I’m looking for next week is how are they going to use the money and which of their diverse areas are seeing the most traction.
It’s a no risk update IMO and should be lots of positives to come out of the session with investors.
Hi AJP,
I don’t expect any other news before 5th June but you never know. As a minimum I would anticipate a statement to say how trading is progressing in 2023. Hopefully it will include some numbers but not guaranteed.
I find the “Investor meet Company” sessions much more
Illuminating that the bland RNS releases and they do tend to give us more of the detail behind the RNS. So I’m really looking forward to it.
All the best.