Member Info for Valuation-it-is

It will be interesting to see if the BoD took shares at 5.5p in the placing.........and if so how many.
Indicator of vote of confidence - assuming the shares are kept.

Many thanks DR A.

https://www.marketscreener.com/quote/stock/ITM-POWER-PLC-4004720/financials/
Thro Break even, forecast 2023.
The forecast is probably constructed from "known" elements. But for valuation purposes there will be a lot of as yet "unknowns" ....some of which are likely to be positive.

Re Mister positive 9.59 I think investors are looking forward at likely future revenues rather than past ones.......

I have already addressed two valuation scenarios for you in a previous post timed at 23.03 . Please read them and comment further. It takes different views to form a market.........Clearly there are a lot of people prepared to take a view of expansion in this area both in terms of investment money coming in to both DMG units and the shares of "green" companies.

https://www.telegraph.co.uk/investing/funds/clean-energy-stocks-soaring-invest/

https://www.telegraph.co.uk/investing/funds/clean-energy-stocks-soaring-invest/

Clean energy stocks are soaring – here's how to invest
https://www.telegraph.co.uk/investing/funds/clean-energy-stocks-soaring-invest/

"Clean energy stocks are soaring – here's how to invest " Telegraph

https://www.telegraph.co.uk/investing/funds/clean-energy-stocks-soaring-invest/

Don't take it from me, try this in the Telegraph for where the big money is going to come from.

https://www.telegraph.co.uk/investing/funds/clean-energy-stocks-soaring-invest/

Why not go short Kalg, if you feel so inclined.......... You probably are already........

Kalg, the market is forward looking.

Kalg see 23.25comment

Kalg

For the first one, yes, but who expects the rest to stay the same? Do the maths on how attractive the return are.........

Hi Kalg, just for you........If you just had 20 units returning a£750k licence fee per annum, and made no money from consultancy, nor any money at all from a share of the profits of the DMG units , just assumed a break even there, and to begin with no tax, put it on 20x PE then you would get £300m.
Assuming an outlook of strong growth, a PE of 30 x might be more appropriate.........
If you think of in X year's time perhaps having 100 units paying £750k licence fee, plus a share of profits adding say £25m i.e. just £250 k per unit, knock off tax say at 25% and put that on 20x you would get a mkt cap of £1.5bn.
Given people want to invest in companies which do good, you might expect a high multiple............

Also there is the value the DMG brings to manufacturers of fuel cell vehicles. Getting something like DMG out around a number of countries would transform their outlook. That has got to be worth £bn's to them, so the value may not arrive to holders in earnings expansion/PE valuation metrics, but by takeover or through funding JV's

You can stop it happening by voting against the disapplication of pre-emption rights at the AGM. There is normally a resolution about it every year.

Not so good.......
"Broker Warrants TPI has been issued with 9,090,910 warrants to subscribe for new Ordinary Shares at the Issue Price, exercisable for a period of three years from Admission."

TPI Turner Pope Investments

Like the sound of
1.An Institutional Investor coming in to the placing and
2. The placing was oversubscribed.......

If anybody wanted an example of just how destructive private placings can be to shareholder's wealth, they could look at PHE.
At the time of writing PHE is off about 6% while others in the sector EQT, VLS, INSP are all up , 5%, 15% 4%....
Is it an over-reaction? Yes probably. The dilution is around 1% (£10m raise on £300m mkt cap = 3.3% times discount of 30%) so absolutely trivial, but the damage to morale and trust is more serious.
Logically it will have made a great deal of sense to raise the £10m the way it was done. It costs significant sums to put together all the documentation for a rights issue, then there are the underwriting charges, so at a guess around £500k -£1m or 5-10% of the proceeds. Also there is the speed with which the money can be raised and put to use - a significant benefit in this case. If the company can re-build the trust, and not be allowed to do it again, we probably have a buying opportunity.

If you hold the shares in certificated form you will be sent a voting card.
If you hold shares in and ISA etc they will be held by nominees and you have to ask the nominee (perhaps through your broker) to vote for you as you desire.

+ve Existing major shareholders wanted more/wanted to maintain their percentage holding
+ve Funding was raised quickly, easily, at low cost
+ve funds can be applied to time sensitive project with +ve implications for the company's future development.

-ve Dilution of shareholders not invited to take part in the placing
-ve Destruction of trust in what the company's officers say in General meetings
-ve Uncertainty engendered over future strategy i.e. licensing model or investor in projects
-ve Further dilutive placings may occur

At the next AGM I think shareholders should vote against the setting aside of pre-emption rights. This placing has been allowed by shareholders by voting for such a thing last time around. Fortunately the degree of dilution is small and it is likely there will be a significant benefit from having raised the money quickly and applying it quickly. But we should come down firmly against it continuing and happening again. This and the use of underwritten rights Issues, are the way to protect ourselves from abuse of pre-emption rights.