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Well I did tell you all this pump was coming. Hope you took the opportunity to build a position sub-1p. I rather expect it will prove to have been the last.

Forget the price declines. Forget the weirdos who post on here with no actual interest in the share - there are millions’ worth of sales (£3m, in fact, as recent guidance indicated). This share is very much alive.

Massive bull hammer on the monthly chart, first monthly close above the downtrend line in fully *12* months. Expectation is for a earnings to be cash neutral. Market cap is essentially H1 FY24 *book value*.

For these reasons, I have been chewing through the available shares in here. This is the ultimate value investment, fundamentally *and* technically, with a shed-tonne of growth prospects thrown in. As the market begins to reprice debt-led investments in favour of equity-based, income-generative businesses, POLX can be a generational winner.

Not a ramp. DYOR and GLA.

Call it confirmation bias (I have been pushing this for several years) but everything I read in the below screams to me that Frank has pivoted towards manufacturing drones. What better way of bringing together the optics, technical plastics and aerospace divisions under the new One Carclo strategy than by addressing a developing, multibillion-dollar market being onshored away from China? “Moving forward, our Aerospace division is poised to leverage its strengths, adapt swiftly to market changes.” It’s all between the lines in here…

Our Aerospace division has achieved record revenue of £7.6m (FY23: £6.6m) and near-record profits, successfully navigating the post-COVID-19 aerospace recovery. Growth continues in our high-end engineering and machining product lines, driven by our development in precision machining techniques.

Our strong performance in Southeast Asia, where we outpaced the high regional market growth, now accounts for nearly 10% of our aerospace revenue, highlighting our quality‑driven approach.

A key driver of our success is the robust growth in our machined precision solutions. We are expanding our precision machining capabilities and infrastructure in both our UK and French sites to support this success.

These investments solidify our position as a preferred partner in the aerospace supply chain, enabling us to deliver large-scale, innovative solutions. By collaborating closely with our customers, we develop tailored solutions that provide a competitive edge and strengthen

long‑term partnerships.

Moving forward, our Aerospace division is poised to leverage its strengths, adapt swiftly to market changes, and deliver exceptional value to customers and stakeholders. With record sales, an improving supply chain and targeted investments, we are well positioned to maintain our growth momentum, solidify our leadership in the aerospace niche and expand in the South

Asian market.

By continuing to prioritise quality, reliability and innovation, our Aerospace division will capitalise on widening its offering in a growing market and drive sustainable growth. We will further strengthen our industry relationships, expand our capabilities and deliver cutting-edge solutions that meet the evolving needs of our global aerospace customers.

That RNS is perfectly timed. Opening at 1.65p puts us above the downtrend line. If the 1D candle closes green, we have very strong positive momentum in this share.

Resistance at 1.7p is strong, but it’s there to be broken. If we close tomorrow above there, hold on to your hats. Eyes on XLV and XBI for pointers of where we are headed next. GLA.

Excellent post, thank you. The US strategy is very interesting, of course, and a massive proof point for the tech. But as a UK-listed company, management should also pay attention to what is happening there too. It looks like there are billions of dollars of funding going into new MRI and CT machines in the UK. It would be a pity to miss that boat.

https://fullfact.org/government-tracker/double-mri-ct-scanners/

The chart again looks better than at any time since my last post, in August. Unfortunately, price got hammered then by macro factors in the general healthcare sector. Since topping on September 4th, XLV (the healthcare sector fund) gave up 12.5%. This happened just as POLX was touching a channel in a fan that has contained price since June. This was a confluence of negative factors that pushed POLX into its recent decline to 1.2p.

But XLV looks like it may well have turned with a capitulation low yesterday that it quickly reversed. This is a very positive sign - if XLV reverses its losses, it will be fuel to the flames in POLX. Independently, the POLX chart also looks extremely constructive. We have been building the right shoulder of an inverse head and shoulders and price has been pushing hard at the upper trend line of that fan.

Under these conditions, a breakthrough could be explosive, and that gap to 2.7p-3.2p looks very enticing. Keep your eyes on XLV. That could be the catalyst we need to restore positive momentum to POLX. I am very optimistic here.

Don’t want to be that guy but I suspect there will be more shares in issue if this ever gets to be a £100m company.

OK, so the double lines of support I expected to be strong didn’t hold and price broke down to gap fill on the 1H chart. The bear pennant we have been in since May began to break down. Typically, this would then lead to a fall in price of a distance equivalent to the length of the flagpole. But that would put POLX at -2p per share or below, which is unlikely to say the least.

I would be surprised if price travels much further down from here. All gaps on the 1H chart have now been filled. There was a solid rejection of that breakdown on the weekly chart as price returned to the expanding descending wedge we have been in for six weeks or so, and that’s a bullish pattern. If the low of the past week holds and we bounce towards the upper trendline of that wedge - or break above it - I’ll be very confident we can bounce up to around 2.8p, although it might not get far above that for a few months yet.

Either way, time is on our side in this share, and in the long term a return to the double figures looks likely to me.

Technicals. I do not believe price will ever again hit the 1.5p it did at 9am today.

Pretty sure the bottom has been put in here and that as of 3pm TODAY the upside will begin. If as I expect we close the day (and therefore the week) at 1.6p+, it will be very bullish.

DYOR. GLA.

Maybe, but I doubt it. From a technical analysis perspective, this share could be about to explode. Across the past two calendar years, the price has formed a textbook falling wedge. It’s performed the test of the lower end that I’d hoped for this week (I topped up when it sold at 8.5p) and rejected it firmly.

This was important because it’s also a third sharp rejection of the lower trendline (“three drives”) and that could prove the slingshot it needs to break the upper trendline in quite short order.

I’m looking for this share to join some other long-term holds of mine (CAR being the best of them, with a good way to run yet) in delivering orders-of-magnitude returns in the coming years.

How long before POLX gets fast-track approval by the UK medical regulator in line with the FDA’s? That will be a game-changer, since LAB has a manifesto commitment to buy 1,000 new MRI/CAT scanners. Puzzled it’s taken this long, if I’m honest. Is management not doing everything it can to make this happen?

https://www.gov.uk/government/news/mhra-announces-new-recognition-routes-to-facilitate-safe-access-to-new-medicines-with-seven-international-partners

Since Christmas 2023 POLX’s 1D chart tracked the global liquidity index - the correlation was pretty much perfect - as the global system unwound with central-bank QT. Both the collapse in the GLI and the correlation ended in June. The GLI turned up, POLX started plunging again.

If the two recover their correlation (assuming it’d be POLX playing catchup rather than dictating to the GLI 😉) then the fair price today would be c4p.

But then if you go back further on the monthly chart and look at the correlation between POLX and the GLI on that timeframe it is, again, very strong. In spring 2020 both leapt at a phenomenal rate as liquidity was pumped into the system. A year later, as the GLI topped, so too did POLX but at a much faster rate, unwinding all its gains of the previous three years.

Were it to catch up with the GLI correlation on the monthly chart, POLX’s current fair value would be c50p 🤯.

What this all means is, small-cap risk assets should thrive in a liquidity-rich paradigm. And it looks like the spigots have been opened again…

One of the voting options in the upcoming shareholder vote is “purchase of own shares”. Personally, I am not a fan (dividends, please). But it does show there is enough surplus cash sloshing around to return some to shareholders. And that bodes extremely well for the share price here.

For a full week now the (rising) 50DMA has provided support for this share. Pressure is building.

(That Guardian article…)

https://www.theguardian.com/environment/article/2024/aug/09/what-lies-beneath-the-growing-threat-to-the-hidden-network-of-cables-that-power-the-internet?CMP=Share_iOSApp_Other

And now The Guardian too. Time for TGP to capitalise with some meaningful marketing around all this and how it is the backstop to the collapse of our communications infrastructure. The share price would respond very healthily to that.

I just look at the chart and see the potential for a “three drives” formation to appear on the lower trendline. If that comes on Monday, you could see 1.33p at or close to the open before it returns almost immediately to 1.6ish. That would be incredibly bullish.

I’m fortunate that my biggest holding here (I have it across four funds) has a cost average of 1.36p. Which is nice.

Tempted to believe we might now see a brief test and rejection of 1.3ish before we really get motoring here. I will be deploying cash if so.

Technicals. I can see us dipping to the 50 DMA this week before the next run up. A better question is: how is it still doing so well when the wider market is down by double digit percent.