Star Energy Share Discussion Threads

[scotty1] 01/6/2016 16:07

Starcom – review following recent share price gains
By Steve Moore | Wednesday 1 June 2016


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Though currently slipping back today, a still circa 3.5p share price of Starcom plc (STAR) compares to 1.25p hit post the company’s announcement of results for 2015 in March and a 1.5p per share placing later that month. Hmmm, what’s happening here?

The 2015 results showed another loss, though noted that “newer products have started to make an impact” and that a new version of intelligent padlock, ‘The Watchlock’, was ready for launch and “actively marketing… customer feedback so far has been very positive”. The conclusion noted that “by converting its strengthening pipeline into growing sales across the product range… the company is hopeful that it will return to profitability during the year ending 31 December 2016”.

However, I noted that the company had last year stated to “expect that the company will return to profitability in 2015” and that a fundraising was (explicitly) ahoy - see HERE.

This duly arrived a few weeks later – a gross £0.45 million raised at 1.5p per share to ostensibly “fund marketing activities for the company's product range… The placing will also provide the company with additional working capital”. This was with the results having shown cash at the end of 2015 down to $90k and bank debt of $1.16 million.

They also included that;

“At the year end a total of $287,000 was outstanding as loans provided by certain founding shareholders, including Avi Hartmann the CEO… repayments will be made monthly over a two year period, starting in April 2016. In addition Avi Hartmann, Uri Hartmann and Doron Kedem, the three founders of the business have not taken a portion of the salaries and fees due to them in respect of the period from 1 June to 31 December 2015… These balances will remain on the company's balance sheet as loans from the founders which will be repayable during 2017 and 2018.”

Hmmm. Will then even converting the pipeline into sales be sufficient to stave off another cash call? With the results statement also having included “as the company recovers its growth pattern it is inevitable that cash requirements will grow too”, it would seem not. Thus, ahead of an update on current trading here, to me these shares remain an avoid.

[euclid5] 01/6/2016 14:55

Hi Trotters T

They have issued some shares to YA Global - see below rns dated 19.02.2016

Further to the announcement of 15 October 2015 detailing the Company's unsecured convertible loan facility (the "Loan Facility") with YA Global Master SPV Ltd. (the "Investor"), the Company announces that it has issued to the Investor 2,904,958 Ordinary Shares at a price of approximately 1.22p per share in conversion of $50,000 loan principal and accrued interest (amounting in aggregate to US$50,710 (£35,446)) ("Conversion Shares"). The conversion price is calculated under the terms of the Loan Facility.

[trotterstrading] 01/6/2016 07:55

Typo should read 'contracts'

[trotterstrading] 01/6/2016 07:54

Tetis-R is being marketed by the company through its distribution channels as well as SATO Global and Cambridge Security Seals they also have a new arrangement with their US partner Contgard which allows for products to be hired on a per trip basis, which is expected to appeal to many customers who don't want the initial outlay. WatchLock Pro launches this month. Assa Abloy (Mul-T-Lock) spent over $500k developing the latest version. Assa Abloy are the world largest security product maker - they also have a long history of acquisitions, having aquired over 200 companies to date (worth bearing in mind given STARs tiny Mcap).TBH congrats could land anytime we know they have been in discussions for some time, but the company are very tight lipped.

[trotterstrading] 01/6/2016 07:42

Euclid. YA agreement has been cancelled. No cash raise this year at least unless significant contract secured which requires scale up of production- as per Chairman at the AGM.

[euclid5] 31/5/2016 22:12

Thanks for your post Shrewdmole,

Do you see the co announcing contractual values in their July product launches?

Will the co need to drawdown more funds from the SEDA via Yorkville Advisors - up to £2myou are in CPX & Opti

I recall

Thanks Mr E

[trotterstrading] 31/5/2016 19:01

It has been said before on this BB, but worth repeating. At 3p STAR was significantly undervalued. IMO we are now entering a perfect storm that will see STAR re-rate to c.5-6p in lieu of new contracts.STAR have JV's and partnerships in place with global players such as SATO and Assa Abbloy and some of the fasted growing companies in the US like Cambridge Security Seals marketing their productsAnother significant development is Tetis-R and WatchLock Pro being marketed as products that to enable FDA regulatory compliance with the new FMSA regulations governing the transportation of food and drugs, IMO this will be a huge driver for new contracts.

[shrewdmole] 31/5/2016 17:02

Why the red post down? I say it as I see it.

If you e done your research on the imminent product launches and testing and the reasoning behind the testing then maybe you would be as bullisj as I.

[shrewdmole] 31/5/2016 16:22

They are paying mid price for sells.
Far far more to come here...
I hold just under 3% so I don't say this lightly but june and July could see 10p easily with he new products being launched.

[andre] 31/5/2016 16:09

Looks like the detractors were wrong. It seems to be breaking out again today.

[philjeans] 31/5/2016 15:48

Shooting ahead........

[trotterstrading] 26/5/2016 11:13

Bang on the money there Shrewdie, I see STAR as similar to CPX back in 2014 when it went from 1.5p to 8pMcap of £4m is far to low for this business IMO, they have secured £5m+ contracts, cut costs and directors ploughed in their own money. New products such as Tetis and WatchLock pro will enable clients to meet new tough FDA regulations coming in this year relating to food and drug transportation. So much to like here and with the BoD owning 50% of the company they have plenty of skin in the game.

[shrewdmole] 26/5/2016 10:27

andre

these will not be at £4m market cap for much longer.

the new product releases over the summer in conjunction with global players will really set this on fire in my opinion.

stock is tightly held and now it seems the mm's cant turn on mitons tap for stock so any decent volume will drive this far higher.

purely my opinion but this will be a far different proposition in the next few weeks.

shrewdie

[andre] 26/5/2016 10:24

Well somebody is noticing. Spiked up again this morning I see.

The trend has been upwards for months now. Not that I believe in charts though obviously. That's all black magic and selective interpretation after the fact. ;O)

Looking good for holders/believers.

[shrewdmole] 26/5/2016 10:22

actually just got £4k worth at 3.25p. trotters close to 3% now mate but think I will stay just below notifiable level.

[someuwin] 26/5/2016 10:16

Looking good here.

[shrewdmole] 26/5/2016 10:15

trotters

theres no stock about.

I had to pay over offer earlier.

looking for more but not sure I will get it.

this really is poised now for news in june and july.

shrewdie

[trotterstrading] 25/5/2016 13:39

Annon Miton picked up 5.5m shares at 1.5p in March.. Nearly 100% gain in two months.. That's why they have been selling, too good an opportunity to turn down in this climate (e.g. Brexit concerns)Also market demand has ramped up significantly MMs approach Miton to release shares are there was no free float.Now Miton has announced 5% I doubt very much they will sell more (they paid 4p for their next lowest tranche)

[annonymous2] 25/5/2016 13:10

How can you be a committed long term holder that is selling so much stock ?

Does not make sense especially when it's not worth a great deal.

[trotterstrading] 25/5/2016 13:05

Miton are a committed long term holder according to the company. You will note they did not inform via TR1 at 8%, 7% or 6% that's because they planned to go down to 5% which tells me they are done selling at these levels. Overhang will clear very quickly due to increasing interest in the shares.

[annonymous2] 25/5/2016 12:49

Anything to be made by Miton selling out or it looks like they are gradually
selling out ?

[shrewdmole] 25/5/2016 12:41

the 133k is a buy.
and theres a 266k buy to show yet.

[singer8] 18/5/2016 13:56

hatey is a TROLL and CON man Andre look how he keeps changing his ID
CON man through and through

FAILED PUMP and DUMP CON man be careful a long list of failed scams under many names.


how many more names hatey ???????????????

annonymous2
sharetips6
hatetrader
34simon
55investor
27howard
29howard
21trader
tradermick
tobytime
hatetrader1

[annonymous2] 18/5/2016 13:50

Where do I say this stock has burned me in the past Andre ?

Why do people have to twist things and make up things like you just did ?

Until they come out with a positive update or win contracts then I remain cautious.