Getech Share Discussion Threads

[yump] 24/6/2024 10:28

He thought it through very carefully on one day then ?

[pugugly] 24/6/2024 10:26

book5 - Correct -

[mikejoseph] 24/6/2024 09:44

Again, I agree with 32campomar the shares wont rally because a fundraise is the only answer now.

Here's the problem; discounts are currently fierce, look across AIM, GTC will be lucky to get it away at a 50% discount. The share price is at 3p, which is an MCap of £2m; if they can raise at 1p (MCap of £700k)they will only be able to raise a small amount. This is the well known AIM death spiral.

I suspect Stuart Hawthorne thought this through very carefully

Mike

[book5] 24/6/2024 09:22

Hi PUGUGLY,

What is USP? Do you mean Unique Selling Proposition?

Nobody has any revolutionary technology. A paradigm change has yet to occur; the proof is that prospecting is very expensive, and commodities are costly.

Competing abroad for geotechnical services is very difficult because governments require the employment of local geologists.

This tiny company's natural market is the UK hydrogen prospecting and carbon capture geotechnical services, which, IMHO, should be our focus.

[pugugly] 24/6/2024 09:15

32c. Possibly the more important question is whether their USP is still superior to competitive offerings or has it been overtaken by competitors.

[32campomar] 24/6/2024 09:12

Until the placing is completed, who is going to touch these in the knowledge that the price will be much lower ? I will look to buy back once the placing is announced. Although my confidence in management is a problem for me after this. It's a complete mess of their own making.

[32campomar] 24/6/2024 09:04

It's reasonable to assume that the placing news was not something he either anticipated or agreed with.

[yump] 24/6/2024 08:51

So who would have taken the shares ?

I assume Hawthorne is not an idiot, so how come he didn’t sell in tranches previously ? Or can’t he read previous accounts and anticipate cash requirements.

Just because nobody mentioned a likely placing on here, doesn’t mean it wasn’t likely.

[book5] 24/6/2024 07:59

“Cash resources have been depleted by the above commercial factors so we are keeping a tight rein on discretionary expenditures and budgets generally and pursuing a sale of Nicholson House. Working capital remains lower than in the past and the Board naturally views rebuilding it as a priority in 2024. Alongside the sale of Nicolson House, the Board is exploring other options to enhance our working capital. A restoration of cash resources would facilitate further investment into sales and business development, as well as advance our AI and Machine Learning enhancements to make our products more relevant to our key markets, and in particular critical minerals and natural hydrogen.

There are signs in 2024 that customers are returning to investing in exploration activities. Unaudited revenues in the first 4 months of 2024 were ahead of the same period last year, and we continue to see good upside potential in our principal markets.”

[32campomar] 24/6/2024 06:55

Going back to the results, who on earth advised them to openly say they were basically going to do a placing ?It's suicide in this market.But the damage is done now, everyone knows they have no money so it will be at a minimum 50% discount if not worse.

[pugugly] 24/6/2024 06:55

bones698> If they knew then could they attract attract similar investigation to those "insiders" who stupidly placed bets on the date of the election.

[32campomar] 24/6/2024 06:52

Clearly he wouldn't want his holding massively diluted.

[bones698] 24/6/2024 06:49

Because there is a placing coming likely at 1p so not strange they have got rid now. Compare many others who have had to tirade money recently, Polx, sce, Gdr etc and all have got hammered on the piece. This will be no different I expect 1-1.5p and why they have sold the lot in a hurry

[yump] 24/6/2024 06:34

Seems odd to have sold it suddenly.

[32campomar] 24/6/2024 06:33

Funding at what price ?The CEO has completely miss handled things and damaged investor confidence. They are backed into a corner.

[babbler] 24/6/2024 06:26

At a huge loss too. But it's dragged the price down. Problem with being a big holder in small caps is selling will kill the price.Now get the funding sorted and start the proper recovery.

[32campomar] 24/6/2024 06:14

Stuart Hawthorne has sold his entire holding, 16% of the company That's a devastating vote of no confidence in the company.

[yump] 22/6/2024 13:36

The rapid decrease in exploration budgets and no prospect of it recovering was from memory actually the main reason for GTC’s problems. That I think prompted them into the daft H2 Green farce, when they should actuslly done what they are doing now and looked for other markets.

Paton got his timing appallingly wrong for that acquisition, as exploration was tailing off.

I hoped that they might now have some astute folk in charge but it appears not. Working capital isn’t a recent problem and it should have been dealt with earlier. Absolutely naieve BOD.

[bookbroker] 21/6/2024 10:53

Stuart Paton single-handedly ruined this company, he oversaw the disastrous foray in other markets back around 2015 when the company was doing well with its globe platform, then introduced Copus to those bandits at H2Green. Derek Fairhead spun this out of Leeds University a good while back, he would be very disappointed where it has been taken.

[zen12] 21/6/2024 09:39

Isn't that why they will be selling Nicholson House?

[the codger] 21/6/2024 09:28

Well oversold,expect a healthy bounce

[mikejoseph] 21/6/2024 09:24

I totally agree with 32campomar:

"If they needed to raise they should have just done it months ago when they knew they might have to. Instead after the statement the whole world now know they have no money & will be seeking a placing. Which will no doubt be at a steep discount to where we are now!"

The problem here is that their nomad/broker will be able to raise more money at a lower share price and get more commission because they are incentivised by the size of the raise and not the share price...

Currently fundraising discounts are fierce.

We will also see the inevitable issuing of new options and repricing of the old options.

Mike

[book5] 21/6/2024 09:22

On the positive side, it is good the company is not hiding the facts.
It is time to call clients, beg for new contracts, and reduce unprofitable headcount to avoid raising new cash.
Pray if you know how.

[bookbroker] 21/6/2024 09:10

Problem is it took five years to sell part of that asset, and if you go up there to see what is remaining it is not exactly an ideal spot except for a bit of birdwatching on the edge of Roundhay Park. As for having money they are barely cash flow positive, that will soon be gone.

[zen12] 21/6/2024 09:05

They do have money and asset for sale....stop deramping lolCash at bank £0.4 million (2022: £4.3 million)· Kitson House sold for £0.65 million in January 2024, Nicholson House remains an asset for sale valued at £0.85 million