Member Info for StillWaiting

The clear problem with syme is just being able to hold for news flow, the margins are just starting to be disclosed which are 4 times higher than what I had envisaged and before Middle East appeared, so after loading up at .05p, having already been in from 1p after AF invested at 5p !!

I am now setting limits at the analyst target of 16p.

Should be fun this.

Will be the making of syme, all that value tied up in inventories with insurers and fund managers getting rock bottom returns and banks reluctant to take on more direct lending to companies.

Step forward supply@me

The big boys will be wanting some of this imho.

Middle East might just beat them to it.

I'd love it if we got Alexa news tomorrow..

catch a few on their toes..

I could be wrong but I don't think RM will be able to offer refrigerated haulage.

1bn t/o, circa 30% fuel to t/o margin (prior to collapse in poo)

You can have a good guesstimate at quarterly vat now deferred.

I fully expect that vat deferral to help repay that loan (FD needs to go if this is not actioned asap), savings on fuel will build huge cash reserves and capex expansion will reduce tax bill..

Easy multibagger on booming trade here if ever there was one imho.

The cheapest haulage group to be snapped up ?

Mm's on empty..

Big gains today imho.

If the FD has any nounce he should take up govt soft loan to refinance the 18% loan and invest in extra logistics to help the country, extra profit to the bottom line and capital allowances to reduce tax and keep the truck manufacturers happy, Scania etc have huge surplus stocks built up ahead of brexit apparently..

Extra employment for UK.

How savvy is the money man here.

Opportunity knocks.

Axa man totally wrong footed, watch for funds adding next, there will be a lot more focus on domestically orientated companies now.

ESL is a leader, even Wincanton continue to acknowledge that, don't rule them out of having another look now that they could do DD without being rushed.

I don't think Wincanton rule anything out, they just didn't have the timecales to do DD etc.

Price is now 1/10th of what it was, their FD must be chomping at the bit, combine the 2, refinance the debt, big bonuses all round.

Don't rule anything out.

£1bn of t/o with fuel costs collapsing...

I wouldn't accept 35p, my sums indicate minimum 40p fair value, 70p pre suspension less dilution add in collapse of fuel prices.
This still leaves upside for scale of economies and cost savings for a consolidator.

Ok let's say 50p

ESL will be a bid target at some point imho.

Simply Too big and a cheap little morsel for a consolidator down here.

Limited free float now larger buyers have appeared.

Glad a few are now doing the research..

A BN t/o company that has seen its main variable cost collapse over the last 3 months does not stay this cheap for long.

I expect a consolidator to appear before long..

Gla

Future look bright, huge funding structured to reward the funder on a rising price, looks like they've seen the future news line up. Another view from Berny at his request.

bernymadoff7 Feb '20 - 21:01 - 3145 of 3146
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ICONIC LABS #ICON
Review of RNS issued 7 February 2020

Trading update reads well. Business is building significant momentum with revenues already being booked and a strong pipeline of deals that exceeds BOD's expectations. But most eyes will be on the renegotiated finance with EHGOS.

Finance deal
Key points:

1. Reduction of existing debt by 30% to circa £950k
2. New agreement to borrow up to £5m with a minimum commitment of £2m
3. Loans will be in the form of CLNs at 90% VWAP
4. Funds to be used mainly for working capital and acquisitions
5. Capital restructuring to reduce nominal value of shares to 0.00001

Pros:

1. Removes the elephant in the room that's been weighing on the sp.
2. Gives access to funds to enable growth. the company continues to increase revenues then the new finance package will allow them to use that cash for growth while issuing equity at a significantly higher sp to repay EHGOS.
3. Getting a better package from existing lender shows confidence in company. EHGOS will have had visibility of forward revenues and pipeline to agree to this.
4. New arrangement gives the sp freedom to rise organically. EHGOS will know from recent experience that in order to be repaid they will need to be sensible how they sell the allocated shares.
5. The company expects the arrangement to give them a clean balance sheet in H2
6. In the very short term I would think the company will be releasing lots of value accretive news, not least because shareholders need to vote the package through at a general meeting at the end of Feb. From now until the GM there is absolutely no danger of any dilution giving an opportunity to traders and investors alike to buy a rising sp.
7. The company says that this package is part of a clear strategy "whereby near-term growth is conventionally funded through net free cashflow and the issuance of ordinary shares in an open offer or placing, rather than through facilities which include variable conversion rights."

CONs

1. For this to be successful requires them to start delivering revenues and lifting the sp to minimise dilution to shareholders and restore sentiment. It's as simple as that.
2. Obviously shareholders will be diluted by the CLNs but providing they are accompanied by a corresponding rise in revenues the net effect could be cash neutral or even cash positive

VERDICT

There’s virtually nothing baked into the current £1m market cap. The company is priced at almost cash shell value. So risk reward is very good at these levels. Especially when you consider that the guys at the helm are market leaders in their field of work.
Tech companies like ICON usually attract a premium valuation on account of their potential (see for example #BIDS ).

If they have funders, game on, I can only see demand for stock finance outstripping supply of funding so it all becomes a margin game. Maybe 1-2% margin on 600m funding less opex giving annual pbt of possible 3-5m on a PE of 15 would get you the mcap of £45m, just how many shares to work out sp.

Get regulatory approval for delinkage of stock deals and sky's the limit, only restricted according to finance from funders, if passes risks on from banking sector I can only see huge huge demand.

Fingers xx'd,

it's been a long haul.

The Agreement is conditional on a number of matters, including completion of the proposed placing, shareholders' approval and completion of all necessary regulatory permissions, and the admission of the entire issued and to be issued (in respect of the Acquisition and the proposed placing) ordinary share capital of the Company to the Official List (standard segment) of the UK Listing Authority (the "Standard List") and to trading on the Main Market of London Stock Exchange Plc, for which application is expected to be made in due course. There can be no assurance that all or any of the conditions to the Agreement will be satisfied and accordingly there can be no assurance that the Agreement will complete in accordance with its terms or at all.

I compare bids and iqai to this and reckon x4 is easily possible when herd arrive.

A clear opportunity whilst it's quiet, expect sumitimo developments may accelerate things sooner rather than later.

Gla

Been a few weeks now, supply@me ltd has been set up so hopefully an update not too far off now.