||EPS - Basic
||Market Cap (m)
Real-Time news about Jsjs Designs (London Stock Exchange): 0 recent articles
|buggy: Unless M Lord or other directors comes into the market to start mopping up all the free shares then this will continue to slide. Not every PI wants to be locked into an illiquid stock.
Then again if they are in the knowledge of any sensitive information, ongoing negotiation with distributors or anything, then they are not allowed to buy shares.
While I will stick with these long term, this management don't half know how to shoot themselves on the foot. Did they not really assess the impact this will have on the share price, misread the size of the impact or they knew but were willing to chance it? Sometimes they only open their mouth to put their foot in it. They inevitably utter something that would be used as a rod for their own back. [ Providing miss-judged delivery timelines, consolidation to a few Mill shares to improve liquidity etc ]
Already we have dropped over 20% of value since this announcement and still dropping! If this continues then we may even lose 50% of value just by one ill-thought strategy decision.
The sad thing was that the share price actually went up after the results due to very good forward outlook statements in the results. Come 12pm they then announced their intention for a drastic consolidation and the shares price went into free fall.|
|buggy: The strategy becomes clearer once people remember that Mike Lord has a company to run and that company is Drol investment. He is managing JSJS Design as a means of looking after their investments in the JSJS designs. [Mike's involvement with JSJS design is only because Drol are invested here. Once Drol sells up then Mike will move on to possibly manage other companies in which Drol are invested, where they think that the company could benefit by the management expertise provided by Drol]
Drol investments are venture capitalists and they will need to exits their investments at some stage.
What Drol invested in JSJS design is only a small fraction of their whole investment portfolio and Mike's key priority is to protect and safeguard the investment made by Drol into JSS design.
In a lot of ways PI interest and Drol interest are aligned: they both want the share price to go up. Where they differ is in exit strategy, PI wants liquidity to sell into the market. With the size their holding, over 70 million shares, Drol needs a trade sale as they can't very well sell 70million shares into the market.
All in all I will stay invested as I feel I can afford to park my investment here until the end game. Share price must go up for Drol to exit.. whether this year or next or whenever.|
|yesrupnel: I am not sure if there is any need at all for anyones concerns.
Whether a share is priced at 10p or 1p or whether you have 100,00o shares or 1,000,000 will have little or no effect. Obviously if a share reaches something like £1000 then dividing it up into £100 shares will improve a few small buyers ability to buy/sell/top-up but any signicant buy/sell/top-up by anybody other than a very small PI it will have no effect.
If it changes it from 110 million shares in circulation to 11 million shares does not effect anything. It the amount of money you want to invest/sell that matters.
If you thing there are not enough shares in ciculation now then nothing changes if there is 10 times less as again its all about the value of your transaction that matters.
If the company needs more money via a placing then they need more money via a placing. This share price adjustment will not alter anything.
The chances that they need more money via a placing has in fact substantially reduced (nothing to do with the share price adjustment) because the distributer now handles the orders, stock, warehousing and frees up money for R&D.
They now have contract staff to use when they need them for R&D and project management which ensure lower annual costs and professionals who can actually do the job.
They have got rid of staff in warehousing, merchandising etc.
They have invested in IT and don't need to invest more for a few years.
So with MUCH higher sales and reduced overheads they will have more profits for R&D.
So in summary I think any concerns about the share price adjustment is a red herring.
The need for a further placing is reduced (you cannot exclude it completely as it is a very young company expanding rapidly) due to the organisational changes annouced.|
Somehow I do not agree with the reasoning , but there you go they have differet ideas.
1. Less shares improves liquidity??? [500M to 11 Mill shares and that will improve liquidity?]
2. Small holders find it uneconomic to trade? They did find it economic to buy their small share holding in the first place so what makes it now uneconomic to sell?
3. Administrative overheads?
May have been true in the days when all shareholders are in a company register.... the days of share certificates, Cost of maintaining the share register, cost of issuing share certificates. These days most share holders hold via a nominee account... hence no administrative burden in maintaining a share register. Hands up anybody that still have shares in a certificated form. Maybe what he meant is the number of people contacting them asking for updates which they are obliged out of courtesy to reply. With less share holding they would not have to deal with a barrage of PI enquiry anytime the share price loses or gains 0.1p. Institutional Investors are less of a hassle.
4. It appears the real reason is to raise capital and the rest is just waffle to justify the consolidation. It would have been best to just say that we need to consolidate as it will make us more attractive to institutional investors via placing. [With 11 Millions shares there is not enough for institutional investors to buy in the open market so either some of the directors will look to partial exit, via selling their shares to institutional investors, or a placing involving institutional investors.] Best to state the basic fact without waffle as that treats the PI as if they can't think.|
|buggy: Like many I do not see the rational of 50-1 consolidation. They may have wanted to leave the penny shares category with its wild swings in share price , but a 50-1 consolidation is a bit too far. An serious AIM company with an outstanding number of shares of just about 11 Million?
If they are that confident of their future they should have waited till the share price appreciates and then do a 10-1, 5-1 consolidation.
In most shares that has gone the consolidation route they by and large tends to drift right back.
What will keep the share price up is solid performance and not any artificially manufactured mechanism. Part of the reason for the wild swing in share price was because the performance of the company has been patchy at best. People expect them to shoot themselves in the foot at every step, so use any upswing as an opportunity to take profit in the sure knowledge that the price will drift down.
As for consolidation being the first step to issuing more shares... may well be so but they still could only issue so many. I believe that they need share holders approval before they can issue shares above certain percentage of the company value. So assuming this is 10%, for example, then they can only issue about 1 Million shares without share holders approval,if the outstanding shares is 11 Mill.
Mind you the management have enough votes to propose to dis-apply the share issue rules, and they can vote this through using their block vote.
I am still just watching and digesting the news and possible scenarios. I have not added or sold any until their intention becomes clearer. [ As a penny stock if their performance for once matches their statements, then this has a potential to move to 5p in the medium term. However if consolidated, and say shares trading at 50p a shares: Do I see this going to £2.50 in medium term ? ( which is the equivalent of the share going to 5p)... I somehow do not envisage this.... but I can of course be wrong.
Talking about shooting themselves in the foot......in one single statement , consolidation, they have managed to wipe out close to 15% of the share price and you can be sure that it will not end there. I expect a gentle decline in share price until the consolidation happens.
I imagine you had 50,000 shares now and post consolidation you will have just 1,000, ( same value but for some people the reduced holding will make them want to exist. Most holders with less than 25,000 may also move so unless someone appears in the market to mop up all these shares being dumped by small holders, the price will drift down.|
|yesrupnel: I think this is a transformative statement.
They are moving their technical experts (inc. the founders) into a technology centre ot excellence where they can concentrate on product advancement/development.
The operational stuff and warehousing etc. is going to be dealt by Megaman in the UK and country specific distributors in each country they expand to.
The tech experts concentrate on what they are good at and leave time consuming day to day stuff to experts.
I really do believe that this will fundamentally improve the company performance and its chances of succeeding by a very large factor.
I have been in and taken substantial profits and then got back in again 0.7p.
Up until recently I always felt that this was a very high risk company and could equally go bust as well as succeed. Once the Megaman deal was annouced I was partially re-assured the company was on better footing as stock control/distribution etc would be taken care of by professionals.
Now with todays statement I see the companies fortunes changing radically. I am not paying too much attention to the financial results as they are largely based on the old JSJS and what I am excited about is the future.
So I am going to add funds this week and hopefully watch the share price increase rapidly over the next 6/12 months.|
|yesrupnel: Roomove - I agree with your sentiments on the company. I have it in the VERY RISKY part of my portfolio and the company has a fairly even chance of going bust or being a multi-bagger. The Megaman deal has changed the odds and also allowed me to take very good profits when it was annouced. I got back in again when I thought the share price had bottomed.
The heating control/set of devices market is now easy to get into for most households. Go to BGas, visit B&Q etc. This is rapidly becoming a 'me too' market. If NEST launches then the premium end of the market will be sown up and the middle ground is what JSJS will need to compete in where margins are tighter.
They need to be bringing a new range of other products besides the lighting and boiler controls in order to be a multi-bagger medium term but based on their track record I don't think they can get new products to market fast enough.
So it looks like their value is more for their intellectual property and technical expertise and a company could take them over, e.g. Siemans, Honeywell.
So whilst a distribution deal with a major energy firm would be very good and the share price could increase substantially on that news and further quarter sales/profits figures I am not sure they are a well run enough company to carry on inventing AND getting new products to market in time.|
I am still holding , but I did tell you not to depend on what they say. Maybe I should have sold but these products has so much potential that I keep hoping that it will make it big style despite the management.
If the did not shout about what they would do well before they have done it, we would be non the wiser and this perception that they talk a lot and deliver very little will not be there. Unfortunately it seems that they talk a good game but falls very short when it comes to walking the walk.
This negative perception drags the share price down as investors no longer give then the benefit of the doubt. Investors will only believe it when they see it... so there is no future prospects valued into the share price.
We have been told, in print on an interview, that they were about to ink a deal with a group of high street pub chain; fast food retail chain and others which I was told in confidence so would not repeat here. Sadly none has materialized even after over a year of making these claims.
Leaving aside the issue about the heating product being over 18 months late.... why exactly can they not even supply themselves with the products that they are supposed to be selling. Their online shop has ran out of most lines of products for over a month and still they have not restocked. When user is complaining that he ordered a product in August 10th and still waiting for delivery on 20th Nov, where do we start to find the root cause of the issue with this company?
That is almost 4 months waiting for a product.?.... whether the person has got it now I do not know.|
If the product are still in testing at Warwick as stated by JSJS design, then it means that only initial proto-type of the product is available.
They can't have a production run of products which may need a design change, as those batch would then be useless if the test fails.
Hence assuming that they pass all tests and no changes to be made to the product, the company will then initiate the production run of these products. Manufacture of the initial batch for the product lunch will take days/weeks, depending on the factory manufacturing capacity, then the shipping lead time and distribution to the sales channels.
I am thinking about March 2014 if every thing goes well, no major setback during testing.
For the products to have a chance of being available in January, it would have passed all tests and we will now be in manufacturing phase of the products. [Hopefully that is where we are. But that will means that the statement by JSJS on their Facebook stating that the products are still in testing is wrong?]
Personally I am not fussed either way. Though I would prefer this to be released as early as possible to help market share grab, a lot of companies bare releasing their heating control products this January so the market is getting crowded.
If the share price still remains low at the beginning of the next financial year it just means that I can add more JSJS shares to my ISA account.|
Looks like the competition is hotting up and lots of companies are getting in on the act. I think the products will be all very similar in a short space of time so it will probably mainly down to distribution - can you just buy it (esp. as its a new type of product), do other people say its good and price.
All of these are critical and if I saw a product labeled Honeywell or Siemens then I would trust that more than JSJS.
However if JSJS was available in mass consumer DIY stores, more trade type places like screwfix/wickes/selco and also Amazon (so I can read the feedback) then it has a chance.
But I think the market is going to get crowded very quickly over the next 12 months.
JSJS have delayed their boiler thermostat (which I think is a key component) until January (delays are a recurring theme for JSJS) but they do have Megaman now as their distributor and that could inspire confidence for large retail outlets. They also have Maplin distributing their lighting products but whilst that is main high street I think it will be more of a 'bloke knowing what he needs' type of purchase.
The MAX! is good (similar to JSJS) but does not have a boiler control and limited distribution (I like Conrad but its not mass market) and perhaps some restrictions in real life - see
Honeywell have a good product and NEST is a very futuristic looking device (I think designed by someone who worked with Apple and has a 'self learn' lifestyle optimisation angle which could be good.
I still think JSJS could go bust quickly ( although cash flow is improved immeasurably by Megaman now paying for stock and distribution, or it could get a decent slice of the market. Its finely balance and more likely to go bust then to be a major 10x share price bagger but I'm up 50% so far and its definitely in my 'high risk' section of my shares that I can 'afford' to loose!|
Jsjs Designs share price data is direct from the London Stock Exchange