The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Cuddles, One Accustem ADS per 1 TILS ADS. 1 Accustem ADS equals 2 Accustem shares.
Folks, First of all let me state that I agree the Acquisition Funding could have been handled much better, a fixed allocation for Primary Bid and an element of debt funding would have been desirable. But all is not lost, in many placing situations the share price falls to the placing price or below permitting purchase opportunities in the Open Market.
Funding issues aside I believe this is an attractive acquisition for both existing and new shareholders. The company is issuing 50% more shares and in return we get:
1. A 84% increase in Production
2. A 70% increase in Operating Income
3. A >150% increase in 2P reserves.
This should translate into an increased 2nd half dividend, albeit H1 likely reduced, but who knows, BOD might compensate for for the acquisition. :-)
Regarding Serenity farm-out, yes existing shareholders will have a lower share if a farm-out is successful but not sure it will have a great impact in the short term share price as any revenue from Serenity would be likely 2+ years ahead.
PL75 - "They’re hoping to wipe out enough in the summer so that the winter wave doesn’t overwhelm the NHS". On reflection is that your opinion? I am a LTH of AVCT and much as I regard our test, in itself its not enough to prevent waves of infection if for no other reason we don't have the capacity to do the level of testing that would require. So how would you like the government to move forward differently? By the way I never said you were anti-vax but was equating part of your post like their fake news.
Share to Buy, Ever heard of statistics or Analysis Proportions? Why would 15% of the population be expected to have more deaths than 85% with the 15% typically being younger and healthier? Think before you post1
BB, Credit where its due to you. I certainly didn't foresee today's RNS for Home Treatment. Lets hope there is a good sound basis for the application.
Vista.
After today's update was happy to add another 110k shares. The potential for growth both organically and by acquisition at low multiples laid out for all to see in the presentation. The dividend policy of 30% FCF with a growing company is really a very attractive combination. Hard to find a more compelling investment on the market at the moment IMHO.
BB,
TILS are targetting treatment of COVID patients in hospital who have moved beyond the viral stage into the immune over-response stage. Its highly unlikely it would be an "at home" inhaled treatment for COVID. It could well be an at home treatment for some of the other targetted diseases however.
Vista
Not trying to put a dampener on things here but not sure why there would be a strong read across from the Regeneron news. Regeneron antibodies bind to the actual virus if I understand correctly whereas Foralumab works to "regulate" the immune system over-response.
Why can't every shareholder on this board see that Sanderson is taking you all for a ride with his ridiculous salary in relation to the £27MM market cap and of course his ZERO shareholding? That on top of incredible value destruction for shareholders, in my case 94%! To give you a comparison Andrew Austin of Kistos takes a £30k salary in a £149 MM market cap company. To ensure alignment with shareholders he owns 17% of the shares of the company through his own money, not gifts and has a track record of value creation for shareholders, eg a 42X rise in value of RRE from launch to sale. There were a few of the resident rampers on here were stupid enough to state UKOG was a better bet than RRE when I brought it up as one of a number of benchmarks on here a year ago. I certainly will not be pouring any good money after bad whilst Sanderson is still in charge!
Regarding 15% US witholding tax, if you hold your shares in a SIPP and have a completed W8-BEN on file there is NO witholding tax as there is a US/UK tax treaty. My account is with HL. I have lost track the number of times this question has come up on this BB.
Keri, the market cap is already silly high at £43MM. Take I3E as a calibration, its market cap is £68MM and produces >9000 boepd and is paying a dividend. Throw into the mix that a massive dilutive bucket shop placing is coming to pay for their Turkish adventures and there is only one sensible thing to do and you might need to be very quick!
I agree with what the good Doc said about the use of a pencil, calculator, etc. (& spreadsheet) I sold out of I3 in November 19 at a significant loss and not too enamered with the BOD. I started purchasing I3 again in August 2020 after publication of the admission document. By going through this in some detail and taking account of the macro view on oil price it was enough for me to consider I3 as a relatively high reward low risk investment. I have purchased an additional 6 lots since and am now in profit multiple times what I lost in 2019. Lets hope we get the dividend we all hope for in the next few weeks and thanks again Doc for the research freely shared.
RIc, if you don't have any shares you won't have any open offer entitlement!
Its still a much cheaper alternative for the UK even if 10% of the population received it!
Hunter, thank you, I'll check with my broker tomorrow also.
Vista
Hello, I have been holding Ferrexpo shares since early April and didn't notice until today that a 35% witholding tax has been applied to my dividends. Has anyone been successful in reclaiming the 20% under the double taxation treaty between UK and Switzerland? Does your broker do it or do you have to do it individually? Does it matter if they are held in an ISA or SIPP?
Thanks.
winwin, I am certainly not denying the importance of a vaccine but even Pfizer quote 90% and its unlikely to be as high as that in some of the more at risk categories. That still leaves a lot of people open to infection given vaccination rates and immunity duration uncertainities. Surely you can see the attractiveness of an effective therapeutic for COVID?
Eva, Could I ask relatively to other COVID therapeutic companies, have they struggled to react quickly enough? Remember getting a diagnostic test approved is somewhat less challenging than a therapeutic approval. I think once SNG realised that despite their positive Phase II data that there was not going to be any shortcuts they have geared up for Phase III quite well. All that is currently approved is Dexamethasone which is only partially efective and Rendesivir which appears to offer little effectiveness relative to morbidity.
BOJO,
I think you missed IMHO in your diatribe against SNG, AVCT, ODX and GDR. Your moniker is well chosen for verbosity. Not one of them is a straight COVID play. SNG stands alone with a therapeutic to treat COVID (and COPD) patients and there will continue to be COVID patients post vaccines. ODX has multiple strings to its bow and not just COVID antigen/antibody tests. GDR has products very similar to NCYT once it gets regulatory approval and yes tests will be required for years to come. As for AVACTA, whilst in the short term it became a COVID testing play its real value belongs in its AFFIRMER / pre-CISION technology in therapeutics and we won't have to wait much longer to see the outcomes.
GLA