Eqtec Share Discussion Threads

[volsung] 24/6/2021 11:36

I do be tinking dat dis is a double bottom.
If so BOOM SHAKALAKA

[inthemix] 24/6/2021 11:27

Placing flipping could last a while, ill check back in a few month.

[dougy1] 24/6/2021 11:09

Still very undervalued.Palumbo mentioned in the last RNS that Croatia News was on the way soon (he expects to seal the deal).He didn't give time indications but I don't see someone with his experience name-dropping something like that unless it was imminent and he had a strong reason to mention it.Long hold

[marktime1231] 24/6/2021 11:04

Some healthy demand for EQT this morning restoring the share price towards the 1.5p listing price. Comforting and inevitable, with hindsight of course.

[juju44] 24/6/2021 11:01

Was technically very oversold and overdue a rally . Hopefully bottom in now

[brut winky] 24/6/2021 10:50

Could just be sellers have been cleared out from the placing, but news is due anyway.

[rocketblast] 24/6/2021 10:47

Looks like massive interest and positive buying. Is there a takeover or massive deal with RNS soon

[brut winky] 24/6/2021 10:35

All being well some substantial news on the way.

[nick of the north] 24/6/2021 10:33

Another financial close coming?

[brut winky] 24/6/2021 10:30

Has it bottomed ?.

[desflurane] 24/6/2021 10:24

Something up?

[onedayrodders] 24/6/2021 08:45

What with CEO Louise Coetze ??LOLOLOLOLOLOLOLOLOLOL. !!!!!

[city chappy] 24/6/2021 08:40

Still has multi-bagger growth coming.

[davidblack] 23/6/2021 08:36

At 1% too. Sadly Ireland really likes to tax it’s citizens like hell.

Don’t go and try to buy a pint and a very modest pub meal there for £15. You won’t have much change and in many places it will cost you a good bit more. Friendly people though especially beyond Dublin.

[brut winky] 22/6/2021 19:38

Surely it must be down.

[hoper1] 22/6/2021 19:02

Yes, I'm afraid Stamp duty is charged as its an Irish company. Still, small beer compared with the potential upside.

[rat attack] 22/6/2021 14:48

Thanks volsung, much appreciated.

[volsung] 22/6/2021 14:45

I think EQT is an Irish listed stock

[rat attack] 22/6/2021 14:41

Can someone please help me! I have just bought eqt and found that I have been charged stamp duty by aj bell on the transaction, is this correct as eqt is an AIM stock? Thank you

[marktime1231] 22/6/2021 14:07

Agreed, doubled up on conviction rather than waiting for good news, taking advantage while it is still trading cheaper than the 1.5p placing which was over-subscribed.

[stevea171] 22/6/2021 10:44

Align Research note post the capital raise.
Note they say the placing was over subscribed, EQT chairman putting in £100,000 of his own money, and they are currently working on updating their financial model and valuation (currently 3.115p but likely to be revised higher).

EQTEC – RAISES £16 MILLION TO ADVANCE BUSINESS STRATEGY. REITERATED BUY STANCE
May 31, 2021 | Posted by admin
By Richard Gill, CFA

EQTEC (EQT), the waste gasification to energy technology provider, has raised a total of £16 million via a share placing, offer and subscription at 1.5p per share, an 11.24% discount to the previous day’s closing price. As our previous updates have highlighted, EQTEC has over the past few months developed a significant pipeline of projects. Between July 2020 and February 2021, non-contracted tender opportunities worth a total potential of €316 million were added for a total potential pipeline value of €657 million. With this in mind, the company will use the proceeds of the placing to take full advantage of a number of near-term opportunities and to prepare itself for further long-term growth.

In the UK the funds will be deployed to secure and deliver the refuse derived fuel (RDF) pipeline. This will include capital investment in freehold land and full project rights for one or more of the existing projects in Billingham, Deeside and Southport, along with other similar opportunities in the pipeline.

In Europe, revenue growth will be accelerated in the company’s target markets of Greece, Croatia, Italy and Spain. This will include the acquisition and recommissioning of specific plants, including the recently announced revival of the 1MWe waste-to-energy plant in Castiglione d’Orcia, Tuscany, Italy. The funds will also be used for the delivery of biomass-to-energy solutions within local communities, to showcase EQTEC technology capabilities and performance and to accelerate interest and growth in those markets. Additionally, there will be further establishment and funding of joint ventures with local partners in target markets, for dedicated, local operations to drive sales growth and delivery.

Further inroads will be made in the US by pursuing existing opportunities in the biomass-to-energy pipeline in California, including formalising partnership agreements with local partners and investing development capital in accelerated pursuit of new deals.

Finally, EQTEC will invest the funds in its operational infrastructure to extend its platform for growth. This will include the acquisition of additional engineering capability and capacity to support concurrent delivery of multiple projects in multiple geographies, as well as further growth of the business development and partner management teams. There is also planned to be investment in monitoring, measurement and data management technologies as part of EQTEC solutions, for remote management and for growing the library of operational performance data.

ASSESSMENT

This is a substantial fundraising for EQTEC, which puts the company in an excellent position to accelerate both its near and long term revenue growth. We note that the placing was over subscribed, further demonstrating strong investor interest in the company and the alternative energy sector, with Ian Pearson, Non-Executive Chairman and Director, also putting in £100,000 of his own money.

Over the next few months we now expect the strong flow of news coming from the company to accelerate. In the UK all eyes are on the flagship RDF project at Billingham, which is anticipated to have a contract value in excess of €30 million to EQTEC and lead the way for two more similarly-sized UK RDF facilities in 2022, in Deeside, Flintshire and Southport, Merseyside. Meanwhile in Europe, EQTEC is pursuing multiple deals, mainly in Greece, Croatia, Italy and other central and southern countries. Five to eight deals are expected to close this year with contract values over their life totalling €20 – 30 million.

We last updated our valuation on EQTEC in April this year following the announcement of the surge in the project pipeline. At the time we expected a maiden EBITDA profit for the current financial year of €3.46 million, with this rising sharply to €23.5 million in 2023 as the substantial non-contracted pipeline is expected to translate into commercial success. However, with this latest funding round allowing the acceleration of revenue growth we now expect these figures to be materially higher and are currently working on updating our financial model and valuation.

EQTEC shares currently trade at 1.56p, pretty much half the value of our current EV/EBITDA/peer comparable valuation. of 3.115p per share. So with the shares looking extremely cheap even before our forecasts revision we are happy to retain a stance of Conviction Buy.

[stevea171] 22/6/2021 10:02

From LSE: "Buy when others are fearful definitely springs to mind and being a little greedy and waiting for some cash to appear hoping these levels might hold for a little while longer so i can buy some more.

News today is exactly the steady stream i am expecting and to prove the exceptional business model.
the price today is really just those short term buyers in the Primarybid cutting their losses and running. Interestingly my note is so many Primarybid placements fall way below placing price so goes to show a lot of flippers hoping to turn a profit but almost all getting caught out.
Nothing but positive news in last 3 months and plenty more to come this year so as a lth very comfortable things will recover and exceed previous high later this year."

[brut winky] 21/6/2021 16:28

Surely this must be close to the bottom , need news of new deals or a good Billingham update.

[volsung] 21/6/2021 15:44

Bought some more for 1.33p

[marktime1231] 21/6/2021 15:06

Well I like the strategy of getting profitable operations in Tuscany up and running quickly and then enhancing or expanding. I like the idea of EU and/or local climate change funding to help with developments, I like the idea that they can take commercial advantage of additional renewable / circular homogenous waste streams from the local community. I also like the increased efficiency of EQT + Jenbacher over conventional incineration, it will drive profit and enhance green credentials, especially if they make good use of bi-heat in a CHP scheme. I like that EQT has been operating a 6MWe olive waste plant in Spain for a decade, so we know for sure it can be made to work.

Some good news about EQTs more ambitious schemes in the UK would be hard not to like too.