Surface Transforms Share Discussion Threads

[bones] 25/4/2024 17:01

Here's an alternative scenario (don't get all serious on me, mind!):

Seeing as Musk has committed his SpaceX lot to buy 10% of FTC (via warrants on the proviso they do enough business together for products his company needs from an existing supplier), maybe he'll do something similar here. Tesla buy in for a slice of the pie (20%-29%?), sort the working capital hump out. In return, SCE "gets the bloody orders out"!

I wouldn't even think this one up, but the FTC deal sparked the thought. Maybe Musk has a policy to secure his suppliers! He's a funny bloke after all, not what I call conventional...

[premium beeks] 25/4/2024 16:37

All the arguments for and against have been done to death. A matter of waiting now for RNS news and clarity and people can make their mind up then.

Sells certainly absorbed at 3p therefore making me think any corporate action is at this price or higher. Those shares are going somewhere of course, the question is where? I doubt MMs are holding them on the books.

[geko5trade] 25/4/2024 15:48

bones698, I'm not suggesting you buy! I'm just pointing out this isn't the usual AIM situation where product, market acceptance and penetration is years away if at all. That's usually the side of the business that needs proving. Not the case here. A bloody good management shake up and clarity re funding and this could be turned around. If you want safe then AIM not often the place to look but for those with AIM type risk tolerance this does stand out at this MC, imo.

[bones698] 25/4/2024 15:33

That's if the raise or funding comes at 3p and not less or they do some convertible loan with the funders dumping the shares to get their money back driving the price lower still. Just because it's fallen doesn't mean you can't lose here. You can still lose 100%, of your investment no matter what level.
The future contract values may look good but there is no guarantee they will be there if they can't deliver. The Contracts may start to b cancelled. Yes it's a pure gamble I get that but it's also still very high risk until funding and why take that risk now when you can remove some of it and then buy in at this price or possible lower.

Bargain hunting usually ends in tears as they lock in more poeple then move it lower again allowing iis and the like to exit. Be careful their isn't a lot to be optimistic about here just yet an dthe bid needs to be changed.

I won't think of buying until I see the funding is sorted and even then if it's only a few million it won't be enough to paper over the issues imo

[geko5trade] 25/4/2024 15:25

rivaldo, yes that's what I was thinking! Under most circumstances with AIM I wouldn't touch it but as you say there are those very substantial contracts and for those that say they can just go elsewhere not so easy. What makes SCE stand out is the product has gone through the most rigorous testing and approval processes so it really isn't there with most pie in the sky or jam tomorrow companies. It's what makes it so frustrating. But management could be fixed and those skills are relatively easy to buy in. Equally if the financial pathway could be made clearer and confidence restored then...The side of the business that needs sorting is doable imo and much of what has gone wrong could have been avoided.

[rivaldo] 25/4/2024 13:42

Currently you can buy 500,000 shares online at the 3p bid price!

Looking on the (relatively) optimistic side, perhaps there's a fund dumping as its holding is now so immaterial.

At the current £10m m/cap the risk/reward is certainly better than it's been for a long time for newbies. So it all depends on your view on that risk....or the apparently substantial rewards which could accrue if SCE ever actually get their machinery running properly and start delivering on those humungous contracts.

[amanitaangelicus] 25/4/2024 13:07

Bargain of the century or it dies due to a funding crunch? Roll up, roll up. Need Labour in power to give a nice Marxist Council funded loan or similar. Need to keep some jobs for the scouser scallies. Maybe Nunez, Salah need a couple of weeks on the production line as a punishment for woeful finishing.

[supernumerary] 25/4/2024 09:48

'exactly'? Who know, and who cares? If it's needed it will be done, that I'm sure about.

[quazie12] 25/4/2024 09:37

SuperHow do they raise cash exactly

[premium beeks] 24/4/2024 22:06

Interesting Bagpuss. An exit now of 10p would be a 3 bagger buying here, and with issues sorted that's nowhere near out of the question.3p downside vs a multiple upside. It's not the worst place to be.

[supernumerary] 24/4/2024 20:26

At the risk of stating the bleeding obvious, SCE isn't going under. It has a desirable product, good customers, orders coming out of its ears, and decent margins. OK the management has been dreadful, and there remain production issues, but however damaging all that is, I can't believe it will be fatal. If the worst comes to the worst, someone will take them out. For a pittance admittedly, but then it's already at option prices, isn't it?

That means that buyers now are taking a one-way bet: it might not achieve the targets long term holders were hoping for, but at least capital isn't now at risk - Rule #1!

It will be interesting to see how it plays out.

[geko5trade] 24/4/2024 17:09

bones, good point. Nevertheless...
Bagpuss67, Yes but I'm not looking at historical targets. I'm saying is this a buy at 3p? Value of current contracts being all but dismissed but there's a lot of potential revenue there that hasn't gone away.

[bagpuss67] 24/4/2024 17:01

Yep so to get an exit of £1 (I had hoped for £2) you would need a market cap of over £500m after them raising £5m at 3p

[bones] 24/4/2024 16:53

Geko, market cap is around £10.5M as there’s 352M shares in issue after the 10p round. ADVFN data hasn’t updated for the extra 100M+ shares issued.

[amanitaangelicus] 24/4/2024 14:47

I feel a bit of Status Quo coming on ...Down, down ...rock on! Another placing defo reqd. The City knows it, everyone knows it, cept the shrooms. Convis anyone. Even a bucket shop job would be better. We.re being shroomed big time. Watcha.

[bones698] 24/4/2024 14:22

I get your point geko but until they are funded it's irrelevant as that will determine how good or bad things are. That will ditacte the share price for now and possibly some months to come.
Rsukts due may will. Be shocking as I posted previously. Maybe after that and some new blood things may start to recover but looking too far ahead at this point is unwise. Both arguments, glass half full, glass half empty are in play currently. It doesn't get to see a bright future if the funding isn't sorted no matter what potential future business may bring.

More sensible to wait to see what the funding looks lkke and get the results out the way before deciding imo. As of now it's a complete gamble

[geko5trade] 24/4/2024 12:49

In part I agree it's financial but it is also about confidence and lack of transparency. Or perhaps I should say clarity, not quite the same thing. You point to (probably) worst case scenario. However if the company are being accurate with their worst case scenario, and I know the market isn't in the mood to have confidence in anything they say, then even their worst projections would justify a higher cap. A fund raising to get through this is one possibility but you could see a number of other strategies. If that were coupled with a change at the top sentiment could change quite quickly. Don't get me wrong I'm not pleased but I can see a route through which this could still be a very profitable cash rich business and it's getting damn close to an each way bet.

[bones698] 24/4/2024 12:35

Not when they need to raise money now and that's why it's fallen and staying at these levels. Until that is announced it isn't going to move either way and unlikely to if the funding is down at these levels.

The problem is most know mots coming and so no point rinsing investing as your likely to have plenty of time to buy in here or lower depending on what price the funding is at. Could mean an awful lot of shares getting issued and more pressure eon the share price

[geko5trade] 24/4/2024 11:52

Volume not so strong anymore. Although I think this management have a lot to answer for beginning to think the fall could be overdone. Still a huge pipeline of sales for a company capped between 7/8 mil.

[amanitaangelicus] 24/4/2024 08:57

Anyone seen the movie Skyfall? Pt 2 out now, Freefall. All very odd. Is the begging bowl out again? Convis? I.m feelin it ...

[bones698] 23/4/2024 18:36

Best to wait and see what comes now funding and update will make it pretty clear how good or bad things really are until then we are all in the dark as to the true state of play here and which way it will go. The fact the share price has settled here and not bounced does point to a plain for some form of dilutive raise around this price though. You would tend to think the ones in the city have an idea what's going on so the price reflects that.

Anyone saying they know different at this stage is guessing. You can either take a gamble that the city have got it wrong or wait to see and then decide fo rme that aa nor logical and risk free way to do it here given what's been released

[casholaa] 23/4/2024 13:48

@PB you sound as if you're still at #3 -lol