Member Info for TrekMadone

Yep looking good but if the OO is covered, including by Shore, and we are above 2.1 I would expect to see Shore sell. From previous experience institutions just want their money back from these risk plays. They may even hedge to achieve that but BPC still get funded. If, however, the PI take up is fully met then I wouldn’t be surprised to see a penny on the sp in an instant. Either way though it looks like 2p will be a floor so buying as close to that as possible should logically result in profit. If Shore have to close the majority of the gap, again, Bpc get funded but whenever we get above 2p we may be confronted by a seller so things sp wise will take longer and it will take longer to see a bigger profit.

My guess at what hinges on the OO. But as an investor however this plays BPC still get funded.

Trek, buy.

No idea what’s going on but the ask is out of the blocks today. Still no idea why we dropped below 90 so just enjoying a bit of pay back. The O&G collaboration may be a truth as it’s been in the ‘pipeline’ for a while now. Guess we’ll soon find out. GL to NR and team.

Trek

JTK, glad someone else has their feet on the ground. After 7 odd years I need this to buy new shoes!

Trek

"Simply before the initial drill."

Yes my comments were pre-spud.

Lot to do yet. Hence question on EA. Also what some may overlook is we have a deadline, albeit some time off yet but I don't doubt we can expect some squeaky bum time. Gonna be a fun ride this one. My view is if you buy now, hopefully if all goes well initially we should have a sp cushion. It's much more enjoyable when your always blue as opposed to red/blue/red or even just red and waiting for news. Or worse still in the if only camp of purgatory from the sidelines.

This imo is still a punt though.

Trek

So most holders and obviously PB see this as a good move and Mr Market knocks off 10%. There is no volume to justify this. All I can think is the order book must be thin so the MM’s are pegging back a rush. Aim is a psychological animal, people buy rising stocks so if the mm push the stock up they would need to have sellers or a float. Now buy drifting the price ahead of news they attract sellers to gather stock for when/if we get good news. I have seen it so many times before and am not bothered.

When you look at the role of the market maker on the LSE docs page it clearly shows they can manually set prices in illiquid stocks to create a market.

My research says this loan facility is a positive step on a longer journey and I have added, for me, significantly in TXP and will continue to buy as funds come free.

See you all at 20p, very soon imo!

Trek

I don’t see double figures pre spud without a farm in. There are just too many shares now in circulation plus options. I think 100m MCAP will be generous for a wildcat drill. That’s about 6-7p. For double figures we need a farm in and option of second drill then I think we could see 12p. Such is aim, give away half and you get more value than if you keep the lot but the market would correct if we get a gusher.

Ps anyone picked up any snippets re the EA?

Trek

Well, firstly finance sorted, secondly no dilution that should appease the naysayers. But in the details what a great deal in today’s climate. 8% with those redemption options is very good. I get that there is a 1/3 increase in production obligations but this is really a short term option in the scheme of things

“Touchstone continues to have the ability to prepay the credit facility principal balance and has the option to negotiate a buyout of future production obligations with the lender if the credit facility principal balance is prepaid in full.”

This leaves TXP well funded to deliver its production plan and given the ‘good payer’ status I don’t see any reason why they could not use this option again in the future to bridge any operational needs. So in short we have either the option of self finance or a decent finance bridge which if needed could also be paid in full.

What’s not to like. I would expect the market to like this but hey it’s aim, they may not be happy until they see the vat man.

Trek

A v good report and worth a read for those interning GFIN. Very much on conservative side for those, that quite rightly challenge the model and forecasts...

https://www.proactiveinvestors.co.uk/companies/news/905821/gfinity---building-on-leadership-in-esport-905821.html

Conclusion...

Valuation looks very cheap on EV/Sales

Looking out to FY June 2022e, the shares are currently valued on an enterprise value (EV)/sales ratio of 0.47x. The calculation is as follows, taking into account our forecast of an additional £5mln equity raise during FY 2020.

EV (current) = Current market cap - FY June 2019 net cash

= 18.7 + 0.6 = £19.3mln

Revenue (2022e) = £36.8mln

EV/sales = 19.3/36.8 = 0.52

We argue that in any industry sector, a company delivering double-digit EBITDA margin and strong double digit growth tends to trade on an EV/Sales of at least 1-2x, implying 2x to 4x upside to the current share price for Gfinity.

We acknowledge that there is not a significant listed esport peer group to allow us to gauge what an esport industry EV/Sales multiple should look like. Nonetheless, we believe that if the company can maintain its current trajectory of improving financial metrics, then there is substantial upside for shareholders on a 2020-2022 timeframe.

Trek

Stick with the plan for now. Market dominance is key. Put money towards opex and new machines. Mine more, buy more. Be the biggest, fastest and most efficient miner. That increases the entry barrier for the opposition. When we have dominance then I think a buy back will be best as cash flows can be lumpy.

Trek

£1

So this is paid by cash. I guess that meant $4.5m or thereabouts would have come from mining. Obviously we don’t know exactly yet. But it does mean ARB’s current expansive business plan is not dependent on BTC price. We have no need for leverage. This imo is a model shift from....

1. Cash as down payment, over order, mine, meet rest of payment from mined funds.

To

2. Cash as full payment. Order machines. Mine and repeat.

Now that if correct that is a significant step change. It means we can expand without leverage so we are less dependent on BTC/$ price. Of course don’t expect the market to understand this. Well I hope they don’t. Sometimes it’s better to have a low sp and high conviction in ones research so you can get more shares cheaply. Then when the market wakes up we’ll have real choices like let it ride, top slice or free carry.

Trek, I like to ride!

£1

OT Repsol’s rig has arrived,

https://oilnow.gy/featured/rowan-jack-up-rig-arrives-for-repsol-drill-campaign-at-kanuku-block/

C/o kwzo over on TLW

Just buy more (funds permitting), I have, value will out. Next leg up here could be just as quick and you could miss it unless you are in. News is being sold into makes it a good time to buy imo.

Trek

TyrionL - worried about where the extra juice is gonna come from. Aug 20th RNS, just need to plug em in! Also all self funded...

“The addition of 50 megawatts of power will allow the Company to run up to 15,000 more mining machines concurrently, taking its total Bitcoin (BTC) mining capacity from 505 petahash (PH), as announced on July 4th, to 1.36 exahash (EH), which would currently make Argo the largest publicly listed crypto miner in the world.

The new agreement will be entirely funded out of crypto mining proceeds from Argo's existing facilities in Quebec.”

Trek

£1

A single share trade for 10p! I don’t subscribe to the messaging conspiracy theories but I do go with finger trouble! Lolly!

Trek

China blockchain bullish comments driving BTC rise....

https://www.finder.com.au/bitcoin-rises-hours-china-based-cryptocurrencies-pump

Re shareholder link, I can’t find update timestamp. Morningstar also has different %. Makes you wonder how they get it wrong. I have also found the company site often lags.

https://tools.morningstar.co.uk/uk/stockreport/default.aspx?tab=5&vw=own&SecurityToken=0P0001E29D%5D3%5D0%5DE0WWE%24%24ALL&Id=0P0001E29D&ClientFund=0&CurrencyId=BAS

Trek,

£1

Zero or below declaration.

https://www.marketscreener.com/ARGO-BLOCKCHAIN-PLC-45184159/company/

And they got their math wrong

Trek

£1

My thoughts, OO delivers, farm-in by major, match BPC $ for $. Two drill campaign. SP goes ballistic!

Trek

I don't know about that article specifically but I have heard of lost coins before. No different than the billions in dormant savings accounts

Trek

£1

I read it as their (FLP) overall % is now lower following the placing so as the offer was oversubscribed I it looks like PSS has been greedy. There is a motive for him staying in touch with 30% for now without crossing the line as we know he could if he so wished go beyond 30% in a blink as surely there is a 2% float. Question is what is the reason. I think he is letting the business mature a little before making a move. I can’t fathom why the SP isn’t higher given the developments and the sound financial standing. Looking forward to what I see an inevitable re-rate.

Trek

On cue..

Proactive...

Patrick Soon-Shiong, the billionaire doctor-turned-investor, has upped his stake in graphene-based products maker Directa Plus PLC (LON:DCTA) to 28.89%.

Soon-Shiong first went bargain-hunting on London’s alternative investment market in February, when he purchased 18.85% of Directa’s shares.

Subsequently, his interest rose to 22.15% before he went shopping again on Friday to take his stake in the materials company to just below the level where he will have to make a mandatory offer.

Graphene is a stronger-than-diamonds material that Directa is using to enhance a range of products from clothes to tyres.

Soon-Shiong is the owner of the LA Times as well as a handful of other regional newspapers.

The entrepreneur also owns firms NantEnergy, which has developed a zinc-air rechargeable battery to replace the standard lithium ion type, and NantWorks, which develops immuno-therapies and cancer tests.

The South African-born investor started as a surgeon in Los Angeles in 1980s and made his money by developing cancer drug Abraxane, which he then folded into his own company American Pharmaceutical Partners (APP).

Abraxane got its FDA approval in 2005 and over the next five years APP was split in two, with Soon-Shiong owning around 80% of each, with each half subsequently sold off to Fresenius and Celgene respectively for £6.9bn in total.

A week ago, Directa Plus completed a placing and open offer that raised £7.6mln at 75p per share.

https://www.proactiveinvestors.co.uk/companies/news/905644/biotech-billionaire-patrick-soon-shiong-raises-stake-in-graphene-maker-directa-plus-905644.html

Trek