Asking 4.7p for just £7k of shares now, all technical indicators are bullish.
Worth noting the low share count only 237m and no dilution ahead as the company holds cash of £4.75m
Current m/cap just £9.5m |
Book exceptionally strong this morning, the break through 4p is very meaningful, last weeks settlement with the DHSS was a material event.
Also the broker re-iterated their 10p target price last week. |
With the Gov dispute cleared up allowing £2.5m of CNSL cash to be placed back onto the balance sheet and positive vibes from the BOD re sales what is not to like here.
A good week ahead to say the least. |
It was near to impossible to get any shares towards the close at offer price, there were some chunky buys during the session on Friday which must have cleared them of liquidity.
My bet is this will hit 5p/6p over the next few sessions, as has been posted the sector is recovering strongly, CNSL sits on around £5m cash with sales growth that should surpass £10m this FY, margins, production volumes and profit is increasing which has NOT been recognised so far by the market, all that for just a £8.75m m/cap ! |
YasXII makes a good point concerning the two TR1 holdings increase one week ahead of the DHSS settlement, a Spreadbet company and a market maker, if you recall how the company share price was hit by 'selling' that took the price down from 4.7p to 2.9p I suspect there was a short operation ongoing.
It looks like the short positions have been caught the wrong side of the trade and are now scrambling to close out in a very very thin market.
The broker re-iterated their 10p target price last week and that is not pie in the sky, would equate to a mere £24m m/cap, also the sector seems to be recovering so it is a great time to buy in or add here. |
 I have looked at the short term, one year and two years chart. They are all bullish. Technical indicators are bullish, with heavy trading volume. Fundamentals are good. In conclusion, when you find all these factors together there is only one way to go. I foresee that the share price to rise from strength to strength, breaking out of the 5 p range.
In the wider market, many companies, including large companies, rise significantly on good news. They have risen far more than Cambridge Nutrition.
Take Filtronic as an example. It has risen 8 folds in a year. When a renowned fund manager picked that share at 12 p it went on to 72 p at an astonishing speed. Recently, after reporting good trading results it has jumped to 96 p.
I am comparing two different companies. But my point is that CSNL has an excellent future. It is now at an inflection point. It is breaking even. As soon as its sales increases, most of the turnover will flow through to the bottom line as profit. I am sure that the company directors know this.
This is without doubt one of my shares for 2025 and beyond. I don't say it lightly because I usually invest in a company to at least double my return. |
Nice 300,000 share buy just reported at 3.95p - good to see the buying price moving up to near the full offer price. |
The market games that are in play currently are frustrating however the settlement with the Government is a game changer and investors will take note.
The company is materially undervalued and is in a growth sector.
If anyone wants to buy place a limit order, market size is 50k shares, if that is correct they have to deal at advertised offer. |
Sod all online at the moment. |
Very strong opening behind the scenes, they are asking 4.2p for just £4k of shares.
Chart indicators very bullish also, the RSI is still no-where near overbought either.
Stocks like this can move disproportionally due to the thin market. |
Gentlemen
Ask yourself why a Spreadbet company and a market maker would increase and notify their holdings via TR1 just 7 trading days ahead of the DHSC settlement.
Do you think that may be to do with short closing, allow the Gracious Fellow to answer that question, the answer is clear YES!
The good news (for holders and prospective investors)) is that 'the short close' has only just started, most likely there are a further 2m-4m shares to buy back in the market.
Sentiment is very bullish here, the broker confirms same, that 'target price' of 10p per share is no longer pie in the sky. |
At the beginning of January 2025 the share hammered out a base and bounced upwards gently. That was the inflection point. The Relative Strength Indicator has continued to tick upwards. The signal line of the MACD ( a very reliable indicator) has crossed upwards. This is a strong buy signal. There is a long way to go for the share price. Minimum short term target is 5 p. Medium term target after re-rating is 10 p.
Regarding the comment on a light BOD, there is really no requirement operationally for a heavy weight CEO because a good manager who has all the technical and operating knowledge can manage the operation well. In the space of a listed company the CEO is very much a PR person except in a large diverse group where the CEO holds the strings together from different divisions. I think that the current BOD is saving the company money by being light. In any case, the person doing the interim job may become permanent. |
I do wonder why the BOD is so thin, it does look like the company maybe positioning itself to be acquired, interim CEO is a clue.
It would be nice to get a trading update, certainly the presentation in November was very upbeat especially on 2nd half sales.
Current m/cap is a mere £8.75m with cash of circa £5m, makes the EV only £3.75m, the company has no debt and sales circa £10m & growing.
The broker values the company at £24m. |
Book is very strong currently, only 100,000 at offer price then they want 4.2p, a break and hold through 4p and you are looking at a new trading range.
The broker note issued today is very positive. |
Zak Mir has just tipped CSNL for a quick rise to 5 p. |
It was surely out of the question for a Labour Government which wasn't in power during Covid to chase a small company for such a small amount, when CNSL's counter-suit seemed to have more merit, especially remembering all the other waste of public cash during lockdown.
I'm slightly disappointed CNSL settled, but perhaps the whole thing was a waste of everyone's time. There was a risk of unnecessary legal bills, so that's gone now
I hope the shorters who pollute the LSE board last time I looked lose a handy chunk. |
Most AIM companies have no cash in the bank. They have debts. They beg shareholders with discounted placing regularly. It is unusual for a company like CSNL that has £5 million in the bank and no debt. The enterprise value is so low that I would buy the whole company myself if I had the money. |
What folks are forgetting the settlement with the Gov makes the company a wide open takeover target, you can bet potential acquirers have been waiting for dispute resolution.
The shares could move sharply higher over the next few sessions 6p/7p is a near term target range IMO. |
Cavendish have commented today on the settlement, suggesting the conclusion leaves the way open for share price appreciation.....
'We believe the uncertainty surrounding the DHSC case had created a significant unfortunate overhang on the share price and, with its successful positive resolution, provides the constructive clarity investors had been anticipating. With the balance sheet now unburdened, we believe CNS is well-positioned to capitalise on its strong cash reserves and forecasted FY25 growth in adj. EBITDA profitability.
With the stock currently trading on an FY1 EV/Sales of just 0.2x, we believe this represents compelling value, considering the level of growth potential that could be unlocked from the fast-growing and lucrative food-sensitivity testing market, which appears to be notably gaining increased mainstream market acceptance' |
Gentlemen
Once again the Cambridge have delivered, the settlement with DHSC announced today was the last remaining legacy cloud hanging over the business, investors now know the YE cash position of circa £5m will all belong to the company and strengthens the business significantly.
The market can now re-rate CNSL accordingly, the shrewd are now buying as Cambridge is materially undervalued, possibly by the tune of three fold.
Remember the period Oct 1st to end March has been telegraphed as strong from a sales perspective !!
CNSL is a Buy. |
On a daily basis a large number of investors land on one or two really exciting small companies, pushing their share prices through the roof. The same thing will happen here. It is a matter of time. HOLD TIGHT. |
Terrific news today which lifts the cloud over the company for potential investors.
With around £5m net cash CNSL is in a terrific position to pursue growth from an already strong position.
Given £0.4m positive EBITDA and a small LBT forecast to March '25, plus rising margins and a trusted and reliable brand there's a huge global food allergy/sensitivity market to go for. Especially with labs in the USA expected to begin commercialising FoodPrint in th current H2. |
The company is stronger than ever. Its high was at 4.5 p in the summer in 2024. This time it will break beyond 4.5 p. Broker's target is 10 p. |
This is one of the cheapest stocks in the entire London market. |
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