Member Info for Treadstone

Yr 22.16 post mon. Neat explanation of why we're all here.

Market pulling back today but Mxc still got some steam as you say. DM article has bought plenty of new players to the table.

I can understand his nerves as a valuing either Ctp and Mxc is a bit difficult at this early stage. To gain size and traction sometimes discounted rights issues have to made to take advantage of opportunities, because neither company generates sufficient cash to do them. Initially the high number of shares in issue put me off, because earnings per share must be pretty small. However Mxc earnings visibility is a difficult one is it not. Much of it is and will be based on the deal making skills of Smith and Weaver. Hence the Calyx type of deal. buying a business and selling it on for a quick profit or the Pinnacle investment which will yield a profit over a longer period. A steady income stream boosted by a series of one off business deals appears to be the model here. Nothing at all wrong with that as S&W have a successful track record, but trying to analyse it to get a clear picture is a tough call. I'm just a believer in Smith and Weaver's business track record along with Mr Wray (who has put in millions) and think one day this acorn might grow into a decent oak tree over the medium to longterm. Blind faith if you like, because I can't see into the future either.

Volume is caused by Daily Mail article alerting investors to the good qualities of Mxc and its directors and not much else. We are with luck on more people's radar than ever before, and maybe we will see average trading volumes improve from now on. As to the sp by the end of the week it could go either way as no substantial news is expected until june. Then it will have £27m in cash and investing opportunities already identified. Look also at the Pinnacle investment. Smith and Weaver know the company management and have struck a potentially brilliant deal. 7 year warrants over 5% of Pinn. at 6.50p with no cash down. In 7 years they could be worth well into double figures or more with only 6.5p to pay should S&W want to take them up. By underwriting the recent rights issue they can direct Pinn to a better future and make good profits as well. Technically they're investing in their own skills to turn Pinn around, which has'nt been doing too well under current management. Things are just beginning to get interesting here. I would not be surprised to find the sp at above 6p by year end.

Mining stocks tend to be a lot more volatile than Mxc which is a small financial services operation. I accept that we may have a small pull back after today's reaction but not much. Smith and Weaver are proven deal makers which is why most of us are invested here. The type of institutions and reputable business men backing this venture confirms this. I do'nt particularly like stock dilution, but more capital is needed for the directors to execute bigger deals. The fact that the sp is well ahead of the 2.50p per share fund raising price reflects confidence in Smith and Weaver. This for me and others is a medium to longterm investment. There will be no Lgo/New type rises here just a steady growth you can rely on without having to follow a screen 24/7. S&W state clearly they want to grow shareholder value. That should be enough for most of us.

The share has reacted to the DM article better than expected but we will have to wait and see if it can hold at 4p in the coming weeks. There may be no further news until the new financing is passed by the shareholders meeting in in June. Once approval is passed as i'm sure it will be, then the deal making can commence in earnest. Plenty to look forward to here.

Thanks for the link and as badeli pointed out the DM article should attract more bees to the honeypot.

No doubt Jim called this one correctly. Moved my money here too but nothing like the amount he did.

I also topped up over 3p but not worried. Just waiting to see where the Calyx cash will be invested.

Agreed. Buys at the full ask and getting closer to 4p.

Mxc have a 7 year warranty over 2.30m Pinn shares at the placement price of 6.5p. They now have board representation and will definately be proactive not passive. In other words this suggests they have been taking a hard look at Pinnacle and see a way forward to put it on a growth path. All for a small investment that's hardly scratched their £15m cashpile. The warrants are merely a right not an obligation so there's no money involved at this stage. Its not impossible for Pinn stock to reach 50p to a pound in seven years in which case there's a good reason to pay the 6.5p and take the profit or hold. It looks like Smith and Weaver have played a good hand here without spending much. They just have to be eying up something much bigger with the rest of the £15m. I hope we won't have to wait too long to find out. I too will watch Pinn but maybe will have to wait for it to settle. Strange to state bid price is 2.95 when there are two sells at 3.16 unless somethings coming through tomorrow.

Its the 7 year warrants over 5% of Pinnacle's stock at the placing price of 6.5p which is the catalyst here for a good profit provided Pinnacle does well. Otherwise Mxc has only invested 2.6% approx. of its £15m cash. I wonder what else they're eyeing up. It took a while this morning for the market to wake up to the possibilities of this deal.

Nice to see a buy at the full ask and the bid up a touch too. I assume the board are doing their best to find somewhere to park £15m currently cash. Calyx was a very smart move with a 5mill profit. Wishful thinking but I'm sure Smith&Weaver would like to repeat that exercise.

Hardly a dead duck. They simply saw the possibility of selling different components of the company separately for a sum greater than what they paid for the whole company. A clever gamble that paid off. It says a great deal about the directors skills. Its not an unusual practice but opportunities such as Calyx do not come around that often. Nevertheless with their pockets full of cash smith and weaver must be putting a number of companies under the side rule for the next deal.

Thanks for the link. Sp at last on the move as it should be. I'm sure the guys are working on the next deal spurred on by the success of Calyx. Would be nice to repeat it.

Thanks for the info. Perhaps our directors will see Sentronex or another company as a hidden gem from which we can unlock value. Next week should be interesting.

Interesting but where did you get that info from..?? Will look up sentronex.

This got a speculative buy from todays Investors Chronicle. They like the Calyx deal. Should do well now.

Actually got some reasonable buying today. Should move up soon as we've been languishing for quite a while. A tick up on the bid may signal something. At least we have sale money from Calyx disposal and hopefully looking for another similar investment.

Well done here...having been burnt once did'nt have the courage to jump back in at around the 3p level. A good old fashioned binary bet on sinohan deal.