Insig Ai Share Discussion Threads

[judijudi] 14/1/2022 07:24

I find it very odd that we have 2 directors
One holds 12,520,000 shares and buys another 40,000
The other holds 10,818,293 shares and buys another 21,505
These buys are minuscule compared to their original holdings
Smacks of window dressing to me
bwtfdik

[chessman2] 13/1/2022 15:26

I have to say I do not disagree with some of today's posts. I am therefore looking forward to news about interesting deals which have or are about to be completed.

Hopefully news about progress will be announced sooner rather than later.

[banshee] 13/1/2022 15:15

I'll be happy as long as they announce these mooted contracts in the next few months, delays go with the territory.

[pj 1] 13/1/2022 15:04

IF the CEO has lied or mis led me directly then I'm out, assuming there will be any value left in it. He would be fully aware of the acquisition when he answered the question.

He'd also better get ready for a pay cut. Sharesoc's reasonable CEO remuneration guidelines are £100k max. for the turnover metric and £175k max based on the current £45m MC metric.
To undertake a Placing so soon is theft from shareholders and confirms to me the Admission Document would have been the work of a fantasist, at best, a work of fiction.

In fact if they do Place then I think he needs to follow the Exec Chairman and go. Pronto.

[banshee] 13/1/2022 14:49

Some kind of placing is likely imo, as I have already said, depends on these delayed deals they are mooting for q1 as to the price. The CEO did indeed say cash flow +ve q1 before the acquisition but since then q3 has been mentioned by II on this BB and that is possibly more realistic, or they may get a temporary cash flow +ve in q1 from initial payments.

Another of my AI stocks BRN had several placings below the float price as well as various delays, and now it is a comfortable 15 bagger for me, and looking good for more. Up 40x in fact from its low, if you were able to time it to perfection, with all the same arguments being seen on here being made about it's low earnings etc (and the directors there never bought any shares).

[pj 1] 13/1/2022 14:37

74Tom. Thanks for your input, I admit I was unaware of the finders fee. I am far from comfortable presently with this investment.

The hinted at news flow hasn't materialised either, however I recall the CEO stating they would be cash flow positive by end of Q1, and that they would be in a position to issue Market forecasts around the same time.

If indeed they do place again so soon then surely it has to be one of the most expensive RTO's ever? It would also place the Co. in to the PoS category

[banshee] 13/1/2022 14:13

Allowing for the fact that Bernstein is a higher rate tax payer he has actually ploughed significantly more than 100% of his realised earnings from the company, including finders fee and Chairman's salary to date, back into shares purchased in the market post float. This is pretty exemplary by most standards.

[nico115] 13/1/2022 13:06

I've had another look at this and sorry I won't touch it .Not saying it won't rally from here but the risk reward isn't good enough for me to take a position Good luck all holders though.

[74tom] 13/1/2022 12:10

Banshee, I didn't say there hadn't been director purchases, however when they are put in the context of coming a few months after receiving a cash payment of £342k they don't carry as much weight.

Same goes for the CEO, Mr Cracknell, who is on a rather tidy basic salary;

"The Company and Steven Cracknell have agreed the terms of a service agreement which will be automatically entered into on Admission pursuant to which Mr. Cracknell has agreed to act as Chief Executive of the Company. Mr. Cracknell will be entitled to a salary of £260,000 per annum."

His purchase of 21505 shares at 46.5p for a total of £10k is equivalent to less than 1 months take home salary. It's even more of a token gesture considering he already owned 10.5m.

No comment on the revenue presentation in the interims??

[banshee] 13/1/2022 10:37

Actually Bernstein has bought 600k+ shares in total in the market post float, has he not rather than 35k? He just wasn't a director at the time of the majority of those 65-75p purchases, so no director's buying RNS..

[74tom] 13/1/2022 10:15

As I've said all along here, I failed to see the justification for the huge uplift in valuation between the initial Catena investment of £1.5m in March 2020 for 9.1% of the Insight Capital which valued the whole company at £16.48m & the subsequent placing deal in April 21 which crystalised the IPO value of Insig-AI at £66m...

My suspicion is that the £16.5m valuation was accurate, Catena was then bid up in the gap between announcing the investment & suspending the shares in August which gave justification to value the whole company at a much higher level. When it returned to market in April 2021 it was bid up further to £1 before the dumping began. By March 2022 I suspect things will have gone full circle and it'll be back to 25p, valuing the company at ~£25m.

Ps.

Any spot the below in the interims?

"Following the completion of the Company's acquisition of Insig Partners Limited in May 2021 and prior to his appointment as a director in August 2021, a payment of £352,629 (including vat) was paid to Mr Bernstein in accordance with an introduction agreement made between himself and the Company in February 2018 in which he as introducer would become entitled to a fee of 1% of the value from this first acquisition by the Company."

Not hard to buy 35k shares when you receive payments like that...

[74tom] 13/1/2022 10:12

Cash burn has also been hideous, with the £6.1m raised in April severely depleted.

'Net cash absorbed by operations' totalled £1.65m (£275k per month)
'Development expenditure' totalled £1.2m (£200k a month)

Net cash inclusive of the post period R&D tax credit was £3m,

- Deduct the £0.3m paid for the acquisition of FDB systems
- Deduct 3 months of development expenditure @ £200k = 600k
- Deduct 3 months of operational cash burn @ £275k = 825k

Gives an estimated net cash figure at 31/12 of £3m - 300k - 600k - 825k = £1.275m, enough for ~3 months of ongoing operations...

So my guess is they have to be on the verge of raising more capital and this is borne out by the falling share price...

[74tom] 13/1/2022 10:11

I see that nobody mentioned the elephant(s) in the room with regard to the interim results then...

"Group revenue of £0.9 million (H1 2020: £0.2 million)"

Note 5 gives the segmental breakdown;

Machine Learning Technology : turnover £217k, costs £1.44m, loss £1.23m

Sport & Leisure : turnover £679k, costs £578k, profit £101k

It goes without saying that a company describing itself as a "data science and machine learning group" shouldn't be reporting top line revenue of £0.9m vs £0.2m in prior year, when 75% of it relates to a legacy sports & leisure business! You certainly shouldn't have to get to the chief executives review to learn of this fact...

[noujay] 07/1/2022 17:32

With apologies the link was behind a paywall. Here's the article:Machine learning can help investors tackle fast fashion ESG issuesBy Tom Higgins | December 22, 2021The depths of fast fashion's environmental, social and governance issues make evaluation of the problems difficult, but technological solutions are making it more accessible.Investor concern in fast fashion is rooted in the environmental impact the industry has, the involvement of modern slavery and exploitation, as well as the murky practices hidden deep within global supply chains.For asset managers and institutional investors alike, considering the implications of fast-fashion holdings in a portfolio involves a strenuous consideration of multiple ESG factors.However, a recent Pensions Expert Twitter poll indicates that such practices are not well established, and many do not know where to begin.Machine learning and AI are proving they can support the transparency and scrutiny required to drive a rise in ESG standards across the board, including hard-to-assess industries such as fast fashionDiana Rose, Insig ESGOf the respondents, 60 per cent said they do not consider the consequences of fast-fashion investments, as they "do not know how". Meanwhile, 20 per cent said they are creating a process to allow for the ESG implications of the fast-fashion industry to be considered, while the remaining 20 per cent were resolute in saying it is not needed.A problematic industryThe common response of organisations lacking the knowledge, tools or capabilities to findings "does not surprise" Gordon Tveito-Duncan, founder of GaiaLens, a fintech aiming to improve ESG transparency through the use of machine learning.Tveito-Duncan says the challenge of considering fast fashion through an ESG lens stems from difficulty in identifying problems within a supply chain, "especially when you consider that fast-fashion companies' supply chains may be sprawled all over the world and the people that make their products are often not directly employed by the companies", he notes.On the domestic front, a lack of regulatory oversight is a "concerning indication of what goes on deeper in the supply chain", adds Diana Rose, ESG research director at Insig ESG."This is why it is so difficult to uncover ESG issues in the fast-fashion industry. Its most significant environmental and social impacts will be upstream, out of sight and still broadly optional to disclose," she says.But the consequences of these issues often start and end in the consuming areas of the world. Russ Mould, investment director at AJ Bell, points towards one such instance - the skyrocketing demand for organic cotton.In 2020, the Global Organic Textile Standard obtained evidence of "systematic fraud" in the organic cotton certification system in India. In this one case, 20,000 tonnes of incorrectly labelled cotton were uncovered. The material would then be distributed through supply chains, resulting in consumers and businesses believing that the sustainable qualities of the fabric were legitimate.The fraud, a result of western demand for sustainably produced fabrics, is a clear example of opaque supply chains acting as a "constraint" for asset managers, investors and consumers alike."There is only so much supply to go around," Mould says, although that is prompting efforts to come up with alternatives."Never bet against human ingenuity," he adds.Investor actionFor institutional investors, being able to see a complete picture of a fashion brand's ESG credentials remains close to impossible, but there are still steps that can be taken to ensure that the implications are properly considered.A good place to start is to "fundamentally consider whether fast fashion is compatible with the global transition to a net zero and socially equitable world", Rose says.She suggests that investors need to ask three robust questions of their ESG values, and whether they align with the consequences of fast-fashion holdings."In the short term, ask is it possible to make the margins that drive fast fashion with a legally compliant UK supply chain? In the medium term, might tighter regulation disrupt the business model? And in the longer term, what does the apparel industry's own sustainability transition look like and who is leading the way?"Indications of good practice in this area come down to governance and transparency, Rose notes. Factors such as strategic leadership, oversight and reporting of the supply chain, robust sourcing policies and adequate internal processes are all indicators of organisations that have prioritised ESG.She adds that engagement with non-governmental organisations "such as Transparency Pledge, Labour Behind the Label, and the Better Cotton Initiative may demonstrate a brand is willing to be held to account to industry benchmarks".Similarly, Tveito-Duncan says simple assessments can be made of fast-fashion brands' human rights policies and subsequent violations. For example, Boohoo was named and shamed in 2017 for labour standards violation - three years before the story garnered major attention.Who should be changing fast fashion? Fast-fashion brands have been embroiled in scandals, but investor initiatives and trustee engagement are telling labels that being green is in this season.Read moreBut the emergence of artificial intelligence and machine learning is providing asset managers and institutional investors with a valuable tool to filter through vast amounts of information, and create frameworks to better consider the implications of fast fashion through an ESG lens.Rose says: "Machine learning and AI are proving they can support the transparency and scrutiny required to drive a rise in ESG standards across the board, including hard-to-assess industries such as fast fashion."In the evolution of ESG best practice, the benefit of access to powerful technology directly by decision-makers is playing a part."

[noujay] 07/1/2022 17:30

https://www.pensions-expert.com/ESG/Machine-learning-can-help-investors-tackle-fast-fashion-ESG-issues?ct=true

[judijudi] 07/1/2022 16:01

PJ,
No Mate I don’t

[pj 1] 07/1/2022 15:55

They are obviously struggling to appoint a (non exec?) Chairman JJ

Don't you fancy it??

[judijudi] 07/1/2022 09:04

I’m rapidly losing my faith here
Needs something special for me to keep my faith going

[pj 1] 06/1/2022 16:16

We have 2 posts totalling 21505 today so at a guess it was in the open market?

[pj 1] 06/1/2022 16:15

I make it £76k in total since November

Lets hope they are not in lieu of the expected News flow or this selling is going to continue imo

Whilst insignificant to the Directors remuneration (Director buys should always be referenced to remuneration and/ or net wealth) I suspect a single Director trade of that amount would have had more short term effect, but obviously significant news needs to land here as the Market is disbelieving.

I wonder if they were taken in the open Market or from ex Directors?

[banshee] 06/1/2022 14:48

All this persistentt director nibbling must bode wll for the future, where the future is defined as the next four months, at least according to the last results.

[pj 1] 05/1/2022 16:30

@parsnip. I think my 'Hemmingway' Menphys charity additional contribution will be staying in my pocket with INSG now needing just +197% by the 17th March to trigger the clause for the cause😛

[judijudi] 31/12/2021 08:50

I presume this is the kind of company that we are competing against

[judijudi] 30/12/2021 07:02

What the F- - K is going on at this company?