Pelatro Share Discussion Threads

[rivaldo] 15/6/2021 06:37

Given the mobile advertising opportunity I'm not surprised to see the fundraising. However, the discount at 40p is awful.....it's no wonder the institutions were "delighted" to take part.

The apparent lack of director participation is also disappointing, although at least they do have extremely large shareholdings in total.

Paleje has summed it up well. I too see the opportunities ahead and the value in a high recurring revenue business, but management need to get past the missteps and deliver on a consistent basis. The CEO has done it before and I believe can do it again, although the short term share price will suffer with this news - but after all it was at 40p back in April anyway.

[bookbroker] 15/6/2021 06:33

The placing could have been made at 50p with a quarter less new shares, have they really made sufficient effort, Caulkwell might have even supported the placing, if he really is backing this with his own moolah.

[bookbroker] 15/6/2021 06:31

I think the peeps have known this was looking at a fund raising for some time, hence the drag on valuation. But you have to wonder why part-timers like Day and Hellyer do not add confidence in this company. I think they are pretty useless at investor relations. day was meant to be a bigwig at Arden Partners, it goes to show how poor the quality of outside directors have become. Still one must try and look ahead, but it’s disappointing nonetheless.

[paleje] 14/6/2021 23:30

The discount is too much and reflects historical management unpopular behaviour (which I share).

But let's not forget the current year ARR projection is already in the bag and we're not even at the half way mark yet, they can see new opportinities which could be highly profitable and if true 1.5m to unlock them doesn't sound expensive, and management project a $25m turnover medium term with a high ARR.

The dilution is small in real terms although I don't doubt we'll get hammered disproportionately later this morning it seems to be the way of late.

To my mind they are delivering but not liked or trusted which does make it a difficult share to hold but if they keep it up it should make it eventually imo.

[p1nkfish] 14/6/2021 22:29

I'm waiting. If I miss the boat so be it but see this as one that could get knocked back considerably on market weakness I expect sometime in next 6-18 months.

We are not out of the woods and a credit event or 2 in the US can easily wash-up here.
Another Mall operator just gone down, others in alternative segments would be no surprise and although the US is awash with cash, and banks stuffed to the gills with it, something will give way. Dyor, imho, I am often wrong.

[gleach23] 14/6/2021 22:15

It's difficult not to be cynical. The recent RNS about $200k of contract wins didn't (understandably) do much for the share price and the enthusiasm amongst us PIs doesn't seem to be shared by the IIs with such a discounted placing. One could say they are taking advantage of a bubbly market but there must also be fundraising fatigue amongst the IIs.

I was all set to put together a large trading position leading into the AGM statement tomorrow but was put off by the number of shares available to buy in the last week which I thought was odd but seems now to be explained. I still have a trading position but will look to manage that through tomorrow. I will also be applying via PrimaryBid for the longer term.

GLA

[p1nkfish] 14/6/2021 22:03

Taking advantage of a bubbly market.

[bookbroker] 14/6/2021 20:46

It all looked too good to be true!!!!

[tole] 14/6/2021 19:24

Am sure Simon Thompson will cover it again after his last update in April.https://www.investorschronicle.co.uk/ideas/2021/04/19/profit-from-big-data-analytics/'..profits to scale up rapidly and the shares to make a concerted move towards my 100p fair value target''

[bookbroker] 14/6/2021 19:06

Well it may drop, and likely towards the offer price, but I will not be buying any more for the time being. They should have waited until next set of results. Be interesting to read Caulkwell’s take on this.

[theoldcodger] 14/6/2021 19:03

Well, against my better judgement, I've subscribed for a few via PrimaryBid. In the relatively short time PTRO has been a listed company, I've gained the distinct impression that it's run more for the benefit of the management rather than shareholders. The large discount of the placing also tells us something rather unpalatable about potential investor's enthusiasm for the issue and the share price is sure to crash when the market opens tomorrow. However, I still believe that the company has a potentially exciting future, so have given it the benefit of the doubt, but their results now need to start reflecting progress and any further fundraising before that would be a bridge too far in my opinion and have me heading swiftly for the exit.

All just my musings and very much not investment advice in any way.

I hold,
TOC

[p1nkfish] 14/6/2021 18:56

I will have no surprise to see it fill the gap and go below 40p over the next 6-9 months.

A current interest in raising funds is because mangements know the market is bubbly and they can catch a bid.

It won't always be bubbly and I can wait.

[tole] 14/6/2021 18:22

"Hope this does not close gap to 40p, either recent contracts positive or simply vapour!"Call me a chart purist but it is funny how they always find a way to come back to fill those gaps.. Anyway I'm a holder under 40p so I've taken the opportunity to add a few in the PrimaryBid application fwiw.

[saucepan] 14/6/2021 17:59

I am looking at this for the first time in view of it coming up as a PrimaryBid opportunity.

Examining ShareScope historical numbers, and the chart, I get the impression PTRO is something of a serial disappointer. If I was a current shareholder, I'd also be very disappointed to see a placing at such a large discount.

There is also a bit of a contrast with another PrimaryBid today (GROW), where it was stated in that announcement: "Certain directors of the Company . . . intend to participate in the Placing." I don't see that here, so no "green flag" on that score.

I don't think I'll be tempted, but am open to hearing counter arguments should anyone so wish.

[cordwainer] 14/6/2021 17:58

Damn, that's a big discount + PrimaryBid don't work for my SIPP + I don't have the cash to add to my non-wrapped fund & share account :-(

[paleje] 14/6/2021 16:34

Here we go again:(

[bookbroker] 07/6/2021 11:20

Be nice to see next leg up above 60p mark. Might be wishful thinking, but contracts have continued to be signed, and I think the above comment about upgrades becoming more relevant.

[sidam] 04/6/2021 12:49

Management did indicate that, although not included in any guidance for the current year, some revenue from advertising was expected. So possible/probable upgrades could be quire significant. It would be really good to see some advertising revenues as that would give some evidence that the longer term aspirations of $15m of revenues could be met. That is the huge upside in my opinion.

[bookbroker] 04/6/2021 11:01

That is understandable, but these people built a company prior to this before moving on. And the board does have UK directors alongside, and their reputation is equally important.