The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Hey Dags. I think you've misunderstood my post (as Samval has pointed out). The intention isn't of course for Ed to keep the SP down. It's to TAKE ADVANTAGE of the people who are selling at this price and pushing the price down. From where I'm sitting, the CFG investment is a good one. I've spoken to scientist friends of mine about the science behind alternatives to palm oil (there're a few 'competitors' out there) and CFG's technology is indeed at the best, most realistic edge of commercialisation. Commercialisation is the key. And as far as cannabis is concerned, we all know that it isn't there yet. But there is a direction of travel. The direction is positive. That bit is obvious. And everyone is excited about France. It's going to be frustrating, but there you go. That's the nature of the investment. LGP and CFG are fundamentally well run companies. At least if they were poorly run, then fine, we could moan. But they're not. This is what the first rung of the ladder looks like guys!! Taking advantage of what I think are fools at this stage is the perfect strategy. Buying 6p worth of asset at 2p? I mean, come on! Let the fools sell! I had never, in my wildest dreams thought that this is what the buyback would look like. I really don't care if I'm the last one left here when everyone else sells out and everyone's money has been used to buy all these shares at this ridiculous price. How on earth do you think Abramovich got rich? And the other Russian oligarchs? They ran around from door to door buying up all those poor Russians' shares for mere kopecks to the ruble. This is where we are now! It's almost as if we're in the middle of the Russian hinterland, knocking on those doors late at night getting those poor suckers to sell a prize asset for pennies so they've got a bit of extra money for something they understand - vodka! It's tough if you have been holding long term and seen some difficult decisions (the Ukraine war really, really didn't help the sale of LEAP - you guys MUST realise that at the very least!), some poor behaviour (a board should never, EVER, raise expectations), but ultimately, we've got some really good assets here. I don't doubt that Ed and the team ARE working on triaging those possible investments. I've no doubt that we're going in the right direction. Respect to everyone here from me too. It's okay if you disagree with me. I'm cool with that. And I really appreciate your posts too.
It looks like the buyback is heading towards being a fantastic success. If we can load up the remaining amount of shares at below 2.5p then I’m certain another buyback will be announced. This is way beyond my expectations at how well this is going. I’m extremely happy that the rug has been pulled from under the feet of short term profiteers (sorry guys!) and genuine value is being created here. Roll on next buyback. Let’s aim for at least 33% of the company to be bought back at an average cost of less than 3p a share by end of 2024! It can be done and Ed, i know you’re reading this board - long term holders aren’t bothered about the short term price. Invest in your long term holders!
I'm always interested in the practical applications of the technology in which I'm invested. This was an interesting article, even though the bike geometry seemed a bit odd.
https://thefeed.com/insider/cognitive-switch-ketones-impact-on-performance-and-cognitive-health
To be honest Samval, I don't think it's worth the effort to go if you're already on this board. It's around the corner for me but I have a hot date, and frankly, that really tops this event! My understanding is that there won't be anything new at all. It really is to drum up new interest in the company and get people to invest. It'd be interesting to see who they've invited and then if those invitees even bother to go. Ultimately, the question on everyone's mind will be whether they want to invest in Ed and the board (rather than the company itself, which we all know is worth much more than the SP). It'd be useful if Mellon goes of course, and that may help sway one or two with promise of 'being in with Mellon'. And perhaps there may be other bigwigs. If it's anything different to that, well, that'd provide an interesting insight into Ed's thinking too. I doubt we can expect anything more, not because it's Ed and SEED, but because that's the nature of these PR efforts. I don't think it's bigger than a PR effort, and those aren't known for being an easy way to sway opinion. Easier at this stage to make Ed and the board more 'investible' would be a successful buyback (buying back the whole 21,5 million shares at less than £500k would be great), or some other notable success. But I guess that isn't on the immediate horizon. I know Ed will be saying 'At least I'm trying' at this stage. But like with a lot of AIM CEOs (and a lot of the adult population to be fair), it is very much about being able to monitor his own behaviour and recognising the impact it will have on the SP. Difficult to undo regardless of how 'insignificant' one may view it to be. Daniel Goleman wrote some helpful stuff.
It’s hard to argue the assets aren’t worth much, because they’re clearly worth more than the SP suggests. The difficulty (as is many a time) is the perception of the board and the CEO. If Ed had only refrained from talking up prospective deals and prospective profits and just focussed on running the company. Raising expectations only for them not to be realised breeds distrust as we can see from comments here. Replacing Ed with someone with a better reputation is likely to help a readjustment of SP.
Ha ha ha! Yes, I’m a way you’re right Mat. But ultimately it’s about VALUE and FUNDAMENTALS! Bottom drawer stuff? Perhaps. I always liked your posts. But yes, sometimes tough times hit us hard. Sorry about EML. I’m sure that’ll come good in some form too. Water is THE big issue in Morocco. The board is perhaps glossing it over a little, but who knows how the dice will land there? ;-). For SEED, I think the buy back is going ok. Hopefully we can get many more at these low prices and then another buy back from February please!
Does anyone know for sure if the shares held in Treasury are all the result of the buyback? I hadn't looked at that stat before the buyback started, but can only assume that they are a result of the buyback. In which case, it seems to be going pretty well. Nearly 8m bought and around 13,5 million left to buy before February. At these bargain prices? Roll on next buyback! If we buy 10% of the company every six months or so, I could be the sole shareholder left after four/five more years! That'll be a pretty good return for me!
Just wondering if anyone has any idea when the next fundraising is (pres via calculating how much cash in the bank and how long that'll tide BEM over to?).
Geopolitics is sooo important in mining (I get the ST/LT investor thing, but ST investors are only in for a quick buck which is pointless target for a company to chase, so redundant as far as I'm concerned). I don't have any spare cash but if I had, I'd probably be placing a bet here for the graphite. (Kallak still looks ok to me but now looks like a bonus rather than the main play, and I'm wondering if the board are seeking political advice for a plan B?). The deposit in Finland is fantastic for the free world. I can't see any political resolution with China in the near-mid future which basically puts BEM into a seller's market with that deposit. I'm not aware of any such high quality, well placed and large deposits that could compete. Has anyone else? If the board play this well, you guys (not me as I don't have cash to invest) will see a fantastic return on current SP. It really is a very important deposit from what I can see, and will help balance risk towards the positive in any mining company's portfolio as far as I can see. Not often I provide a positive view. I know a lot of long termers here have had a stressful time, but really, it's great for you that BEM have got that graphite deposit! Astounding in fact!
As a long term investor looking for the cheapest possible buy back, it is with regret that I see the tick up today. Yesterday was surprisingly large volume - some significant trades and it looks like at least SEED was scrubbed from at least one PI investment portfolio for good. I can't see this bottom lasting long (by that I mean a dip followed by rise followed by dip to sub 3p) at all, even after the next traders' sell off, there seems to be limited appetite for selling, meaning only that people will be happier holding on for a higher price. I can only imagine that those feeling rather negative are slowly being flushed out, being replaced with a new breed of investor. So much the better for the rest of us. It's a very short road to 4p suggesting 5p-6p is more likely to be on the cards this time round. Let's see!
Samval - I think the difference we can feel is there is intrinsic value being created from this buyback. With every day that goes, as traders sell, their fingers burnt (sorry guys!), or banking the small profit they have, MY share of the portfolio increases. There'll come a point where this'll pop - and pop upwards. It's obviously not sustainable for the SP to continue to fall. There'll come a point where there'll be a wider realisation (beyond chatboards and beyond the simply buyback) that with every Xp of share, you get to hold 2Xp of wealth - or even 3Xp of wealth. A successful liquidity event will certainly help focus on a reasonable NAV per share! Then we'll get more people (including traders) happy to hold at those higher levels. Personally, I hope we get enough people selling now for this to fall to sub 2p! I've no idea what stovepiping of information there is between/within brokers with a buyback like this (you get my point, right?), but if we can get a few million shares at sub 3p then bring it on!!!! The brokers will certainly have earned their crust in my book if they can tempt people to sell in a falling market like this, only to buy all their shares at bargain basement prices! It's going to be really interesting for the next four months if it continues like this! A target price range between 1,8p and 2,8p for the buyback to complete successfully would be an amazing result! Especially if it is followed by another buy back! I just hope I haven't put people off from selling and banking their profit! It's nuts as a strategy for a company to pursue (at first glance), but it certainly seems to be working! I haven't seen it work this well anywhere else. Blue chip buybacks have hardly any effect on SP it seems. Sell, sell, sell your SEED shares everyone! Except for me of course!
I think the buy back is going rather well, better than I had imagined. Less shares in circulation is the key now rather than the buy back immediately increasing share price. You'll all know all this anyway. Imagine if you remained as the sole shareholder after all the traders have bought and sold even if it did need all the cash to buy all the shares in circulation. Back to reality, the SP is likely to continue to fall, and I hope that previous volumes permit enough buying at those tiny low levels for Ed to announce another buy back in three months. Perhaps for up to 20% that time. Can you imagine 30% of shares out of circulation for £2M?!! I'd suggest a limit on cost rather than a limit on overall volume. If we get an average of 3,5p, or less this time, so much the better - £100k or more to return to the kitty rather than in the hands of traders (sorry guys)! And the NAV per share has gone up disproportionately to the money required for that to happen. And we've still got more than four months to play with! Happy days!
I hope so. At the moment , it looks like one large seller offloading. Could be Leckeeman? But if it was, it all starts to sound a bit odd that somehow he bought such a large stake a few days before a share buyback was announced only to sell a little later. Any stakes accumulated in the last few years outside Leckerman were tiny. So it would be unlikely that it’s a small time PI. Time will tell… .
Not if they continue at this rate. It’ll be over in another eight days. Not sure I’d want them to buy in a falling market and so predictably - it looks like a straight transfer into the hands of someone….. . Whoever is in charge doesn’t really seem to be making particularly timely purchase decisions….. .