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*opening today
A bit of a flurry of negative sentiment yesterday late afternoon and evening. Almost like a small group had decided to take out a short position on OBC and attack it following the recent share price rise...
I came across OBC a few weeks ago as an opportunity and still hold a large position, despite the recent rise. Here’s why:
- Market cap is still very low at £5m
- 18% share in ADVFN alone is worth nearly £1m. ADVFN share price rose 43.5% yesterday.
- £400k cash following recent placing, enough for 3 years runoff at least
- No debt
- Freefaucet was only setup just over a year ago and is already revenue producing. Only small amounts at £50k so far, but user numbers and revenues are growing all the time, enhanced by increasing interest in crypto currencies. Users earn crypto coins for online activity, including bitcoin, so it’s only natural that user numbers (and OBC revenues) will grow exponentially as sentiment in cryptos increases. The beauty of this setup is that the ever growing revenues from this stream have 100% gross profit margin. Something that could turn into a very valuable asset.
- Development and ownership of several different cryptos and blockchain techs. Yes, they are early stage, but cryptos are increasingly being accepted as the future, so their values are very likely to increase further and any one of them could become much more mainstream, which would be a complete game-changer. This is the exciting component for me as they could provide huge value going forward. Bitcoin is now pushing $29k and is continuing north, which shows how strong sentiment in this sector is and the ongoing direction it’s going.
- BOD have considerable skin in the game with over 40% holding between them. They also keep the overheads incredibly low.
A few shorters seem to have jumped on the fact that the recent large placee has sold a small proportion of their holding. They’ve seen it as an opportunity to spread fear and try to drive the share price down. Anyone planning to hold over the coming weeks will need to prepare for the odd attack from a group who have clearly taken out a short position. Why else would they all suddenly start posting negative sentiment at the same time? It will present some good trading opportunities I’m sure (possibly starting with a small drop on opening tomorrow that will then quickly get bought up), but there will no doubt be a bit of noise surrounding it.
For me, despite the noise, this has lots of reasons to justify the current £5m market cap and easily enough to push it north of a £10-15m market cap. It looks like there might be a few bumps along the way though.
Freefaucet is OBCs crypto asset claiming website where users are paid in bitcoin and other cryptos. It was already seeing strong growth back in October (see RNS). Since then bitcoin and other cryptos have boomed, so it stands to reason that freefaucet will see significant further growth in users.
Plus OBC own and develop their own cryptos and blockchain tech with further updates expected soon (see RNSs).
Not really sure why ARB holders would come across specifically to try to deramp OBC other than spite. Why not just stick to your own shares. OBC has a huge amount going for it. And from current £4m market cap, still has a lot further to rise.
Hi all. New to OBC and this BB. My take is this... General sentiment towards crypto is improving all the time. Bitcoin for example is at record highs and showing no signs of stopping. I wanted more exposure to cryptos in my portfolio and came across OBC whilst researching that. Liked what I saw so started to build a position these last few weeks. I think more investors might do the same as crypto sentiment continues to grow. Other than buying crypto currency directly and the odd crypto mining company, there are not many companies on the stock market that get investors exposure to cryptos, especially for such a small market cap. As a marker of sentiment, OBC rose to around 200p the last time bitcoin hit $20 in 2018. Now bitcoin is on a relentless rise, up over $24 and still going. OBC is on the rise as well, but still only up to 30p so far (£3m market cap). Think there’s a good opportunity buying at these levels. Thanks. Just wanted to share my views as a new investor here. Good luck all. Stay safe.
I noticed last week that the P2f website for ordering masks changed from payment on delivery to payment upfront.
For me, this change shows the strength of demand for the product.
I also wondered whether it might be because they are commissioning Volz to make the masks for these initial orders while there is a delay on their own machine production until January.
News on Turkish national news channel now.
Expecting a lot more news coverage over the weekend as well, both in the UK and globally.
Very large orders and licensing agreements must be in the pipeline from here...
www.ntv.com.tr/amp/saglik/bakir-katmanli-maskeler-corona-virusu-yuzde-90-olduruyor,5ctcD5Hj8Uq720xRAD818Q
Big international licensing agreements could follow very quickly here.
News is already spreading internationally...
https://merahputih.com/post/read/masker-5-lapis-ini-mampu-membunuh-90-partikel-corona
The extract from BRH results in March was pre-covid as well. Demand for masks has of course gone up massively since then. Huge potential here.
This could gain a lot of traction from here.
210,000 tonnes of rare earth oxides at the SA project at $50k per tonne would be revenues of around $10 billion.
Plus their other project in Burundi has one of the highest concentrations of rare earth oxides in the world.
Nice to see the directors buying up a large percentage of the company as well. Shows good confidence.
Current market cap of £30m seems very low for all of this.
Comparisons with EUA worth looking into. Market cap there currently sitting at £800m.
https://www.proactiveinvestors.co.uk/companies/amp/news/933073#click=https://t.co/n2JdGQlIVd
Very positive write-up on diamonds.net...
https://www.diamonds.net/News/NewsItem.aspx?ArticleID=65678&ArticleTitle=Let%25c5%25a1eng%2bPrices%2bExceed%2bPre-Pandemic%2bLevels
Current £55m market cap valuation is ludicrously low if you ask me.
Revenue for 2020 is already up to around $160m, cash in hand is growing all the time, now sitting at around $53m (including all payments from the September tender) and debt levels are very small in comparison at $23m, so the net cash position now is actually around $30m.
Next diamond tender is due around late Nov / early Dec time, and if that goes as well as this last one then I’d be amazed if they don’t introduce a share buyback / dividend at the end of 2020 / start of 2021.
Any company with annual revenues pushing £200m, £40m cash in hand, only £20m debt and improving fundamentals all the time should easily have a market cap valuation up closer to the £200m mark.
I really think this could go on a very strong run from here.
Agreed, always taken with a large pinch of salt, but nice to see the broker targets upgraded rather than downgraded nonetheless.
Definitely looking very undervalued at the moment. Think Q3 / September tender update could get things going for a big leg up from here though.