Kirkstall / Paraytek / Sentinel / Phasefocus / Gyro24 Nov 2020 22:15
Some of the comments on here are laughable and seem to be coming from very inexperienced traders chasing rainbows.
Just reading through the board here I am now getting a better sense of why the SP has dropped in the last few days. It is clear that a few were invested in both RMS and BRH and are selling out of BRH (and possibly RMS as well which is also down) being influenced by all the drivel on Twitter etc...
Let me make one thing clear. BRH made investors a lot of money this year, and most importantly, it made BRH a lot of cash, now sitting on £18m+ with roughly £17m in profit mainly thanks to its investment and sale of phar2farm. For an investment company that had a mcap of just £3m at some point this year & around £1m in cash, that is almost surreal. Now that this profit has been realised, instead of applauding the CEO, bitter punters are panicking because the share price here has dropped 2,3,4,5% etc... and thus fulfilling a fear based self realised prophecy.
However, last year BRH released their half year report end of October. It is now almost end of November and we can assume this will soon be released very soon now. Having read through the last bits of updates in the last few RNS's there is clearly quite a lot happening with Paraytek and their potential to create a state of the art covid test, as well as many other tests for that matter, but Phasefocus looks to be just as promising if not more, already generating revenue in multiple continents.
Either could do what pharm2farm acheived for BRH or more in due course.
In addition, BRH also owns 80% of Kirkstall, once the jewel in the crown investment here and could still surprise many as they are involved in a fast growing sector. Sentinel and Gyro could also do well.
None of the above is priced in and even after tax, the cash held will still be more than the current market cap.
The half year update should give us an update on all of the above + an idea of what will be done with the war chest the BOD have amassed and with 25% held by Trevor personally, he is 100% aligned with shareholders when it comes to BRH and I am pretty sure a special dividend will be announced as well as a few investments, Paraytek most likely, maybe phasefocus and possibly a new company as well. These updates + new investments will turn sentiment here after all of the newbies have sold out and once they realise what they are missing out on, they will no doubt come back in droves at a much higher SP having chased rainbows elsewhere, successfully or not, the point is, in the end chasing rainbows tends to end up in tears in the long run.
To put it yet differently. Many shells on AIM trade at a premium to their cash balance, on nothing else but pure speculation almost always. Here we have 5 maturing investments and are trading at a significant discount to cash with important news be released any day, an opportunity rarely seen since I have started investing and trading in the market some 10 years ag
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