||EPS - Basic
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Real-Time news about Eruma (London Stock Exchange): 0 recent articles
|tday: Share price approaching its all time low. Obviously not a lot of optimism about.
As you say, time will tell.|
|tday: Loadsamonay, You say: "They are defo making progress in the right direction".
Please explain, since the company has never made a profit, and seems unlikely to do so in the near future. The market - right more often than not - reckons it's going to go bust, witness the share price having declined from circa 200p to 5p today.
You say all Eruma needs is a big contract. The trouble is, it has needed that - and more - for the last seven years, so far without luck.
Due to a lack of profitability, working capital is and always has been one of their big problems. It appears that it isn't getting any easier - hardly surprising - to find such UK funding, hence the need to look overseas. A hint of desperation?
In addition the sales force numbers have declined and there appears to be little cash for marketing. Staff morale is apparently pretty low.
I know that some of the original shareholders, have lobbed in more cash for additional shares (and to finance specific contracts by way of loans), but they are now sitting on serious losses. At some point, they are going to decide that enough is enough.
I would be surprised if Eruma, is still around in 12 months time. AIMHO.|
|crosswire: Keep an eye on GDL
SHARE TIP SUMMARY:
Greka's shares don't look expensive, either. Broker Evolution Securities says that the average share price rating, based on 2012's earnings estimates, for Greka's drilling sector peer group stands at roughly 11 times. Yet Greka's shares trade on just seven time the broker's earnings forecast for 2012. That discount looks undeserved given its potentially impressive growth prospects within China's fast-developing CBM sector.
|soft t: possible capital raising to finance new buisiness? real attraction here is minute market cap. any real progress as indicated will really impact on share price in my opinion|
|dropside: "The reality is ERUs trading history is truly dire"
So it is. Long term holders will have a better handle on the past performance of the board than me.
BookieBuster, I take it the £0.8m is from the Interims - Current Liabilities - Trade and other payables? As you say, it has to be paid off by June 2011 but they seem able to run around this level year on year so I think the effect on cashflow should be fairly neutral if the debt is repaid as another debt is incurred. I agree it is an uncomfortably high level in relation to turnover.
The big risk here is indeed cashflow. Until (or if) they become truly cash generating. they will need to be able to periodically raise funds. The directors have shown themselves willing to support this to date. However this is the risk and it is why the share is not a 'widows and orphans' stock in any way.
The other side is sales. It looks like they achieve a gross profit of 35%. This has not been enough, combined with anaemic sales revenue, to climb out of being a loss-maker. The indications are that sales are taking off strongly. If this is simply because they are desperately slashing margins as you imply then we are on the road to bankruptcy. I do not believe the directors would be supporting the company with their own personal cash (remember the finance director put in £135K as I recall and he saw the books!) in this scenario.
I would not make this a big part of my portfolio personally but am very happy to take a stake here. The directors will lose far more than me if it goes wrong! If it goes right, and I feel this is the more likely outcome, then we will have a major re-rating of the share price. As said above - time will tell!|
|dropside: Good summary! My thinking too and that is why I bought in today.
ERU has done almost nothing for the last five years and that really accounts for the low current share price. Since buying the lighting business just over 3 years ago though they have been making progress steadily and sales are now showing strong signs of taking off. If more evidence of these sales comes through, and they can finance the working capital - and I believe they can as Steve says above - then we are quite likely looking at a significant and rapid re-rating of the market capitalisation.|
|tday: The last RNS regarding contract wins was in May 2010 and then only for £85,000.If there have been further contract gains, why has no announcement been made? After all the shareholders could do with some good news.
On the other hand, perhaps the continuing inexorable slide in the share price, is indicative of a lack of substantial new orders?|
|4shorty: Thats good news philips are a big player in the market, should put some gloss on the share price.
|shortlegs2: If I remember right manon the figure was more like $3-4mil, don't forget the yanks are doing a lot of the blast testing, and also beginning from a standing start, it will take time for the tests and also to break the market, they have targets for testing as well as sales and if they don,t produce on these there will be escape clauses for eruma, however healthy sales here and a 37% increase in share price is very encouraging, as I have said before we have a strong sales and management in place, once we are sorted here I'm sure we will see them shaking the yanks up.|
|countdrac: Based on the what little history these shares have they would seem to be undervalued at present. Given the type of customers they have they should have a secure future and I trust an improved share price in the new year. Thats why I have recently aquired shares at what I hope is a knock down price.|
Eruma share price data is direct from the London Stock Exchange