Looking at both sides15 Mar 2022 12:41
Hi All,
I have given myself some time to absorb and understand this mornings RNS. I feel that we(LTH's) have been potentially misled in that we were not expecting a raise, however I will say that opportunities sometimes appear when potentially you least expect it and therefore are unprepared, this then requires a degree of risk. The calculation ME has had to make here is if the financial benefit of a raise outweighed the risk of credibility. The decision that has been arrived at is not the decision I would have come to, however that is probably the reason ME is where he is and I am where I am(also atm I'm only getting part of the picture).
Now, I don't believe ME and Co would have arrived at this decision lightly and therefore we have to understand what motivations would have been in place for ME and Co to arrive at this decision. For me I personally do not believe that this decision would have been made if it is not going to deliver substantial gains for MOS in the short/medium/long term. In short I believe we probably need to give the MOS team time to explain their plans for this raise and win us back with promises of better days to come as we have become accustomed to MOS delivering on promises of expansion and new business ventures etc ...
As for right now, I'm giving MOS the benefit of the doubt and looking to what they aim to achieve through this raise, however there is now a seed of doubt in the back of my mind where there wasn't one before. I truly hope this plan comes together as if it turns out to be a flash in the pan, I'm afraid I won't be holding out for the next placing.
As a caveat, I would like to add that this is AIM market and therefore we do potentially have to bear a degree of responsibility in that raises are/will always be a concern, so I accept my responsibility there also and shoulder a portion of that, furthermore I apologise to anyone who raised placings as an avenue for the business where I have directly offered ME's assurances as a counter to the argument.
In light of all of the above, this is still a fast paced growth stock and revenues continue to build, therefore I would still give it a Strong Buy rating but be careful as the company does not care about me or you, it simply cares about it's own growth, in this case it has been at the expense of LTH's. I'm sure it can be re-cooperated, however this will take time.
They say to never fall in love with a stock ... lesson learned.
GLA LTH's,
Upside.
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