The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Artificial helium? Now theres a money spinner. I would love to know how any human can artifically create helium at any cost without the fusion of two hydrogen atoms.. unless they have access to an unholy amount of heavy alpha emitters with short half-lives. The problem with those bad boys though is that they tend to be highly radioactive unstable isotopes of the naturally occuring element.
those less radioactive natural alpha emitters such as good old uranium, with a half life of 3 billion years, youll will need to wait a while.
There wont be a speeding ticket as the rise is actually based on pretty solid news from the company. It can rise 1000% from now, and still no speeding ticket. These are isued for random, violent fluctuations in SP.
But expecting daily 100%+ rises (which is a 2^x exponential rise) will lead to tears like it always does, and when those expectations are not met, thats when the SP stalls and nosedives. Bed wetters will flee at the first sign of a pullback, and thats when profit taking will snowball. But after a 750% rise in 3 days, i think its pretty reasonable and not too trollish to suggest at some point, the stock will take a day off and pull back.
Thats when people like me come in and pick up the pieces/steady the ship. I'm a valueable component of the AIM ecosystem.
Seems like something decent is finally happening here at long last. Too little too late for 95% of those invested pre Dec though. Nice little earner for those who got in on that last placing.
After 3 days of solid rises, surely there must be a slight pullback tomorrow one would expect? Buy on speculation, sell on news is the age old motto on AIM.
The RNS reads:
I have injected more capital in the business to ensure I can continue to suck out any miniscule revenues this company receives by paying myself back on extortionate terms.
I have made sure I have completely covered myself on these CLNs to make sure, in any circumstance, I can make as much money as possible whilst leaving other PIs with nothing.
Who are there mystery shareholders Geoff? Don't kid yourself, we all know its you.
Davey, I really don't think the fact that they haven't raised is a sign of strength! And I have no doubt that if you offered them 100k for 0.05p, you would have a bloodied stump for an arm on return, I.e. they will bite your hand off at that. You would be very foolish to do so though.
They don't make the conscious choice of not to raise, its simply because they can't! Who would conduct the placing with such deathly low volume and a very dubious amount of goodwill on the balance sheet? Risk to the buyer of the shares is completely off the scale as they simply can't offload and certainly can't short to hedge. It's untouchable even for tiny amounts. This company is so bad they can't even raise anymore, because trust me....if they could raise, they certainly would!
Their only option is very shady dealings re loans with high interest rates as rocka has pointed out. That's how they are staying alive. Not by the strength of their own back! How do you think the directors extract the cash from the business operations, leaving the SHs with zero? Easy...lend the money yourself through some shady companies, charge extortionate interest rates.... Nice little racket here.
Sadly enough, this is not a conspiracy theory. It's happening and rocka has clearly pointed this out with evidence.
You know what they say trump, there's only one way to defeat higher prices....and that is higher prices. The cause of inflation, on the grand scheme of things, is irrelevant as the end result is the same, spiraling costs. And it's the end result that requires action. The rest is cause and effect, I.e. whatever caused it will be effected the most when action is taken.
Prices cannot perpetually increase with all other things remaining constant however. Wage growth is very inflationary, and is now starting to catch up with inflation....only then does it begin to spiral as you suggest and these higher prices begin to set like concrete. That's worrying.
As for debt laden companies....nobody should shed a tear for debt laden companies who pigged out on cheap money who now have to increase customer costs sky high to service debt purely due to their own greed. This is survival of the fittest! Such debt laden companies will simply not be able to compete anymore, and die. Competition and fit companies rule the roost at times like this. And quite right too!
The best thing to combat inflation? Smash the interest rates up hard and fast! Its painful, but its the only sulution really. A short, sharp shock physically and psychologally is always best than a prolonged drag, where you then have union's conspiring against you in the fight against inflation and a whole host of other things such as greedflation. Nobody has the balls to take such action these days though. Ironically, only maggie had the balls and really knew how to deal with inflation.
Realistic based on historical context and houseprice to average earnings ratio....which are in no way 'realistic' based on today's value, for the simple fact that they are unaffordable for someone trying to buy their first home.
I really hope we have seen the last of near zero interest rates. Central banks caved far too quickly to market hissyfits when they attempted to raise rates by a quarter point before. This time round, 5 years out I can't see them dipping to back below 2% unless there is a massive deflation overshoot and a sudden, deep recession. All look unlikely at the moment given strong US jobs data.
A gentle relaxation of interest rates starting mid 2024 looks likely now over in the US. In the UK...2025? Enjoy the risk free interest rates some banks offer until then! 4.2% easy access over at investec now, and 6% for a 1 year fixed.
Why risk capital in a ftse100 company for a risk free 4.2% easy access?
mike talks a lot of sense in that comment, and looking in that front windscreen, you'll have to s***** hard to find a ray of sunshine, even on the horizon.
nationwide figures are almost worthless, and are particularly useless in times of turbulence, high beta and fast moving events. we know this as actual home sales have tanked....due to interest rates and the delusional asking prices most seem to insist on asking, with first time buyers (the engine of the property market) well and truly stalled, simply walking away and waiting.
it is a showdown between baby boomers and their yesterday's pricing of btls vs interest rates vs first time buyers. first time buyers can't afford current market prices. therefore will interest rates give in first, or property sellers?
in the last month, it looks increasingly likely that property sellers will give in, and asking prices will cave. only then will the engine of the property market sputter back into life.
you'll be surprised how stubborn some sellers are, particularly baby boomers who are the worst! i frequently ring around estate agents to gauge the market....many refuse to budge from asking despite the property being on the market for over 6 months! this is the behaviour that is propping up nationwide figures, despite firm market rejection of said figures.
the only reliable figures in times like this are ons figures....but are months behind the curve. only then would we be able to see the full extent, but rear looking. i am willing to bet that the "liquid" part of the property market (realistic sellers) are trading at least 5% below nationwide figures which are largely based on a frozen market. that's the cause of hbs tanking this month.
Haha becoming a lifestyle company? You mean is and has been for years.
Everything down....except surprise surprise administrative expenses, citing inflation. Nuff said.
Geoff knows the shareholders still here are diehards, so will believe him if he said a unicorn ate the cash.
How this dog can still continue to exist is beyond me.
Good news that bank deposits in may were finally net negative, meaning people are draining surplus cash. This should have a shock on demand, thus an effect on inflation as people are running out of money to spend. Only when this happens will inflation fall.
For once I am firmly with the government on this, and finally the penny has dropped for BoE re rate hikes. We must stay the course and continue hiking rates and taxes to see inflation finally collapse, and must resist further pay rises and charities lobbying for providing more support, which are both highly inflationary. I am also pretty certain that secret backroom meetings between govt ant banks have been going on re mainstream banks savings rates, and how low they are. The simple fact is, the govt don't want people to have more money....and this time for good reason. Its well known how technologically illiterate, untrusting of change and how older people hold the majority of weath in mainstream institutions....thus keeping mainstream savers rates low keeps cash out of the system as they wouldn't trust challenger banks that offer c4% on savings and are far less likely to shop for rates.
There will be casualties, but far far fewer than allowing inflation near 10% remain for even the medium term. We cannot allow ourselves to become a bailout society where people no longer calculate risk into financial decisions and expect to be bailed out! The tide has now gone out, and those standing naked should be left exposed to the elements and serve as a warning for all.
As for this stock....I wouldn't touch the sector with a barge pole. I can stick a chunk of money in a challenger bank with near 4% interest rate easy access. What incentive does that give me holding here watching principal erode? Tech stocks and high growth is where my money is going once inflation recedes. Look over at US tech stocks as the inflation there has peaked. They have boomed. I can see further gains in nasdaq as US inflation receds further, and fed rates vegan to unwind.
Shortage of housing is a myth!!! It's a lie that has been sold to keep houseprices buoyant.
However, there is a Shortage of AFFORDABLE housing! And hopefully that's about to change.
No amount of free carpet will convince buyers to buy near record high prices with the interest rates the way they are, and will continue to be for the foreseeable future.
This was always going to happen. The UK is the first in trouble, the last to come out of trouble and with the highest peak.
Lots of factors at play as to why this. However, like I said a year ago the BoE have been too slow to act! 5% rates should have come along much much faster to wring inflation out of the system quickly rather than let it drag and prologue pain. I also say increase tax and vat, and introduce higher vat on luxury goods to stop spending, and increase rates to c.8%. Its crucial inflation is brought to heed fast.
As for house prices, although they remain stubbornly high now, they will come down. And that is a fantastic thing unless a) you own more than 1 property, and b) you are an overleveraged speculator. And it's quite right that these should be punished savagely more than the rest of us.
As for the rest of us, embrace the market falling. So what if your home falls in value; if you are moving then you get a discount on that too....and pay less stamp duty. If you are not moving....ride it out and stop fixating property prices.
And for those with big mortgages/neg equity....again thats too bad. Ride it out! And all this talk of mortgage relief schemes.....that sort of thinking is what got us into this mess!
Awesome day! Unlucky to those who got shook last week!
Every day we get closer to fair value here. I'm raising my glass of dom perignon I am currently sipping in a fancy ass hotel to us all who have hung in there.
But it's not over yet.....
It's the most ridiculous process ever. Put yourself in JPMorgan and other big banks shoes; why would you put a bid in for this company when you know full well that you will be able to buy the company for a song once the FDIC will place into receivership, at which point all the large banks like vultures can pick on the corpse, cherrypicking the best part and leaving the FDIC with the skeleton and deposit losses. This process literally dooms any bank that faces a short term liquidity crisis...there is absolutely no incentive for larger banks to take up the slack when the govt constantly bail out and practically give it away to larger players.
The system is utterly rigged to allow larger players to benefit here. Why the FDIC acts as a backstop I do not know. There should be no such thing as "too big to fail". In this respect, let nature take its course. That's fair! This way, no bank would ever be too big to fail, and the banking system would be far more decentralised. Small and many!
Jpm and Co must be drooling this weekend over the cheap assets they are about to pick up
Exciting stuff.
If it begins with a 2, I will 4 bag here and profits will be well into 6 figures. But keeping level headed, c£1.50 is still where I believe any opening bid will be. Anything above that will be a bonus.
Would be very nice to see this close above £1. But the real gains to be had are much more binary. When bid is announced, it will gap up instantly to within 10% of the bid price (Apollo are a serious player so bid will be taken seriously, minus a small risk reverse premium if any deal falls through from bid acceptance to deal completion).
Unless things leak (it tends to do so), best course of action is to hold out for word from apollo if you want to see this through.
From where I stand, it's a win win. Regardless of what happens, the company is worth much more than it is currently valued at. And the activist investors are the silver lining here if a bid fails to materialise. I for one will see this out, to whatever end.
Everyone knows what's coming here. The boom of the confetti cannon and the dusting of another few billion shares.
That's all this company knows how to do. And of course finding dust with said cash. They are really great at that.
If you know what's good for you, stay well away at least until the placing and closer to these flow results. This has a long way (and time) to drift yet. Low 30s and possibly 20s inbound.
120p wouldn't be accepted. It would be rejected instantly, activist investors will force THG to spin off and add value through sum of parts....that's if another bidder doesn't instantly trump such a low bid. Value will out here either through a PE buyer or otherwise.
150p sounds about right for any serious bid.
Not much to be said now really until apollo show their hand. Happy for this to plod around the 90s until we know more.
All to play for here; 150 ± 20p opening gambit is where my money's at, and steadfast in belief that payday is just around the corner.