Itaconix Share Discussion Threads

[purchaseatthetop] 27/2/2024 08:17

That is a good update.
Couple of issues…
Revenue is a bit of a false guide.
The gross margin on cleaning products is very low and we do not know how much of that revenue is the simple sell on of manufacturing product which has only an 8% gross margin.
What would be really useful would be for them to update the gross margin.
But they do not need any cash so nothing can be called a pre raise pump.
Should recover considerably and pleased for all of you.

[rivaldo] 27/2/2024 08:07

Online you can only buy a maximum 300 shares, whilst you can sell at least 15,000 at a small premium!

The shares are in demand, certainly for the moment.

[geraldus] 27/2/2024 08:04

Okay.I only know that the 'More Financials' option via my phone displays a £550 mill cap.

[pugugly] 27/2/2024 07:54

grtalsus- It is £17.1m Same as Stockopedia £17.19m and LSE at £17.19M Not worried about the 2nd decimal point. All 3 sites show the same number of shares allowing for rounding,

[rivaldo] 27/2/2024 07:45

Geraldus, there are 13,486,122 shares is in issue per the 22/8/23 RNS, so the (mere!) £17.2m m/cap is correct.

[geraldus] 27/2/2024 07:42

About time ADVFN displayed the correct market cap.

[babbler] 27/2/2024 07:39

What lines? All looks good to me. Shame market doesn't recognise this one but hey ho..one day.

[rivaldo] 27/2/2024 07:32

Encouraging stuff.

Revenues are ahead of Canaccord's expectations at $7.9m (forecast was $7.8m).

And the cash pile at $10m is well ahead of the forecast $9.3m. This against the £17.2m m/cap.

Above all I like the confidence in the outlook statement, in particular the emphasis on "becoming a large, profitable specialty ingredient company".

The huge recurring revenues and expanding customer base here make ITX especially attractive.

[pugugly] 27/2/2024 07:12

Trading update. Revenue up significantly, very encouraging but reading between the lines still loss making.
JS - We need to see positive cash flow and bottom line profitability.
Lets see market reaction.
SP before opening 125/130p

[lefrene] 26/2/2024 13:59

Horses for courses, Amazon caught the dot-com boom, and could be seen to have a rapidly rising revenue flow. It was All Americun too, and could have invented the phrase 'financial engineering', constantly leveraging the cash flow to grow the scale of the business. I didn't like the business model in the early 90's so I didn't buy it, a huge mistake.

ITX as we know is not an Amazon type business, it actually has something real to offer, but which can't grow cashflow in the way an Amazon style business can. So ITX has to prove itself as having value, which are PROFITS arising from a product that is wanted by a growing market.

Because ITX is so poor at promoting itself imo it's also exposed to private vulture funds pouncing on it, who will do a proper marketing job, and sell it back into the market at easily 3 times the current market cap. There is a list of positives as long as ones arm in this company, and yet it remains in the shadows. Vultures will be watching.

[dexdringle] 26/2/2024 11:43

But surely if you wait for a profit you've waited too long?

Look at Amazon. The price action there was crazy before they made a bean. Ditto Tesla.

The prices of shares in significant new companies go up in anticipation of significant profits. It appears the market isn't expecting those sort of profits here otherwise the share price would be flying in advance...

[lefrene] 26/2/2024 11:17

dexdringle, true the market is a perpetual horse race, but one has to know at what track the nag is running, and be interested/knowledgeable in the particular group.

Markets get moved by big money, and cash hungry small techies with a 'story' but no profits, are currently out of favour. (yes I know ITX is no longer cash hungry, but do the 'filters' know that yet?)

We are waiting for PROFIT in order to get noticed in a world that is looking for safety in low risk dividend payers. I'm expecting that this business will soon be able to offer profits and growth, protected by a raft of patents.

ITX will be known to the big players in the industry, it would make an easy bolt-on 'green' offering. All the hard work has been done, no more capital investment required, and once in profit capital could be borrowed against future earnings.

Hence I continue to hold in the expectation that once PROFIT is reached the value will improve, plus in my view a predator could pounce once their beancounters are happy with the figures.

[dexdringle] 25/2/2024 15:03

Lefrene, maybe. But the market is effectively a never ending dynamic auction where the item stays in the block permanently, everyone interested can see it, and the price is live. No one misses it because it is there for all to see as is the information about the business. And thus it finds its true price among all market participants.

[lefrene] 25/2/2024 12:35

dex, if you are at an auction but unaware of all the items that are going to the block, it very possible to miss a bargain, and see it sold well below value.

If the market doesn't know you exist, or doesn't know the quality/advantages of your product, then the market won't apply a price that reflects real value. Meanwhile insiders in the 'trade' will recognise real value and attempt to acquire it much below value.

[pugugly] 25/2/2024 12:27

Re 9805 Rivaldo - Impressive background - Yes
Possible RED FLAG however given much of his experience is in fund raising.

[dexdringle] 24/2/2024 20:42

Unfortunately, markets are efficient. As a result, there's no such thing as a 'bargain'.

If it was worth £3 a share it'd be £3 a share.

[lefrene] 24/2/2024 17:57

I can't quite see him doing a Blues Brother routine! :¬)

Nothing sells itself, you have to get out there and keep telling how great the company is. But for all that I still expect one of the big bruisers to come along and grab it for a fraction of it's real worth.

[geraldus] 24/2/2024 14:39

Don't want him turning up in a shiny suit and dark glasses.

[lefrene] 24/2/2024 09:33

Too many on AiM are not actual businesses, just kite flyers, whilst ITX is an actual business, with patents, products, clients, growing production and growing turnover.

I presume the word 'PROFIT' is what is being waited for, that awfully dirty word so eschewed by academic types. Profit seems pretty close, add visible growth prospects and some of the funds will start to take notice.

But yes I agree the current valuation seems absurd in view of the progress made over the past couple of years.

Lets see if Wednesday gets us any attention, at least Mr Shaw has taken the trouble to learn how to speak in a coherent manner. Perhaps he might learn some stuff about marketing too.

[geraldus] 23/2/2024 14:17

Little confidence in AIM stocks now.Look at Saietta today,another to the list,or should I say non list.

[dexdringle] 23/2/2024 13:46

How this can be worth less than half of what it was two years ago is beyond me. The nearer we get to it being commercial viable, the lower the valuation gets. Imagine if that had happened with, say, Amazon...

[lefrene] 23/2/2024 13:26

Thank you Geraldus. With any luck they will publish an RNS on Monday, thus providing discussion material for Wednesday. Considering the strides made by the company over the last two years, it seems absurd that the price is back to circa 2.5p in old share money.

[geraldus] 23/2/2024 12:35

JS presenting at Sharesoc next Wednesday.About due for an update on the new chapter we are in.

[lefrene] 23/2/2024 12:03

These people know how to screw their share holders. Isn't there a meeting in LA tomorrow? So ITX can't say anything new as they haven't informed the share holders first. Seems like a missed opportunity.

[rivaldo] 09/2/2024 07:11

An impressive new NED appoinment announced this morning.

ITX certainly don't need more cash at present! So maybe there's some sort of corporate activity in the works, or perhaps this is just a strengthening of the company's credentials in anticipation of further growth to come and heightened investor/City interest?