Member Info for Sonic80

Rise looks set to continue throughout the week IMO. This should never have fallen so far from 120-140p range. Profitable company with good cash pile and strong growth. H1 trading update due out soon, which should outline growth / new contracts and solidify the rise back up towards 76p broker target IMO.

Nice posts wiseinvestor23, thanks. I completely agree with your sentiment here.

Thanks Paul. This was posted elsewhere by others yesterday and quite useful to explain the significance of grades / depths / strike lengths…
https://t.co/EvCreBQQ7g

“50m oz being up for grabs is a drastic underestimate”

“The highest in-ground grades you’ll see globally”

“The prize is absolutely outstanding”

Market cap still only £7m

https://www.youtube.com/watch?v=emC2d-JL6mQ

East star resources #EST

Kazakhstan-based gold exploration
Highly prospective licenses
IPO 5p (May 21)

Current share price 3.9p
Market cap £7m

Cash £4m
No debt

Initial RC drill results outstanding
63m discovery hole:
4.5g/t average throughout hole length from surface, including last 19m of hole at 14.4g/t, ending in mineralisation
Shallow depth = open pit / early revenue potential

Extensive, fully funded diamond drill campaign now commissioned to delineate further

Share price depressed by Kazak jurisdiction / proximity to Russia, but Kazakhstan distanced themselves from Russian actions and large mining companies like Glencore very successfully operate there, so investor concerns seem unfounded. Presents opportunity. No other reason found for dip below IPO, especially with very high post-IPO grades reported (26th Jan 22 RNS)

Overall impression: Strong buy
Max exposure: 5% portfolio
LT:trade: 90:10
Review: RNS-based, not time-based

I like it a lot and will keep accumulating down at these levels. Just a matter of patience here IMO.

CEO said in recent interview cash around $5m. Should see extensive diamond drill programme this year all well covered by that. Hopefully the diamond drill is headed straight for the AP_008 discovery hole announced last week to test how deep and wide that mineralisation extends (so far only RC drill tested with open, very high grade mineralisation at 63m depth). I find it amazing that the share price is still at recent placing / relisting level despite that exceptional drill result. Surely it will move a lot more when the diamond drill gets going on that site and more results start to flow in. Very happy to accumulate around these levels.

https://youtu.be/UTYEccAY4HI

Some large individual trades going through recently, including just over 3% of the company in a single trade today. Should see at least 1 holdings RNS over the next few days…

Current P/E for SHOE is around 7, compared to retail average of around 20-30.
Way undervalued whichever way anyone looks at it.

*marker
Bloody autocorrect!

Completely agree Reswod, and as a market of this, 16-week lockdown meant H1 results were £40m revenue, £2.5m loss and net cash £4m (RNS 18 May 21). So to get to todays FY results, H2 must have seen £80m revenue, £12m profit and £10.5m increase in net cash to £14.5m. Quite some turnaround and way ahead of market expectations. This looks incredibly undervalued at current £65m market cap.

Excellent results update for a very, very well run company.
Well done to all at SHOE.

H1 saw revenues of £40m and a loss of £2.5m because 16 weeks of it was in lockdown. FY results are set to show £120m revenue and £9-10m profit. So for H2, £80m revenue and £12m profit. In that period, they increased net cash by £10m from £4m to £14m. H2 performance exceeded all expectations. We’ve also now had another 3 months trading since year end, in which time other retail companies have announced further big increases in revenues. All this for a company still only valued at £60m. And you’re not looking forward to the results announcement because of shipping costs?! By your reasoning every international company in the world is surely doomed. You should definitely sell all your shares and move on. Results on Tuesday, so you’ve got 2 trading days to act before the end of the world.

Does look to be warming up nicely here…

Technicals looking strong as well.
Good chart analysis from Zak Mir…
https://twitter.com/zakstraderscafe/status/1466765792331116547?s=21

Should pick up soon I think.

For the first half of this year, results showed revenue of £40m and loss of £2.5m (due to lockdown), so to get to the full year results of £120m revs and £10m profit recently announced, they must have done £80m revs and £12m profit in the second half of this year. That, coupled with net cash of £15m, make the current £50m market cap look ludicrously low.

Good to see 4 new stores opening up in quick succession recently as well. All points towards a business that is currently booming.

I don’t think that’ll go unnoticed by the wider investment market for much longer.

At current prices and after recent trading / profit announcements, I’d be surprised if SHOE is not a takeover target for one of the larger clothing / shoe brands.

They all trade on a P/E of around 20 (e.g. £2bn market cap for £100m profit) whereas after the recent profit announcement, SHOE trades on a P/E of 5-6 (£50m market cap for £9-10m profit).

It makes SHOE undervalued in the market by a factor of 3-4 (true value for £10m profit for industry standard P/E of 20 would equate to market cap of £200m). And that is without factoring in their £15m net cash position, which would add further strength to the valuation.

I expect SHOE to rerate up towards true value over the coming months. And if it doesn’t, I’d expect it’s larger peers to be circling in take-over attempts.

ADVFN up 25% today and rising.

OBC holding in ADVFN up £850k today as a result, equivalent to a 10% uplift in OBC value / market cap.

Market hasn’t caught on yet, but the rise in ADVFN will undoubtedly have a knock-on effect here eventually.

NFTs a very good thing to be in.

Explosive growth…

https://thefintechtimes.com/applied-blockchain-the-future-of-nfts/

https://www.reuters.com/technology/what-are-nfts-2021-11-17/