Surface Transforms Share Discussion Threads

[timbo003] 20/1/2021 13:12

yes talk2dubya, I am sure that is the principle reason, but I was sort of pontificating on what I might do if I wasn't a current holder and I had SCE on my watch list and then I spotted that I could get an option on buying shares at 50p, by just purchasing a few shares today at 60p or thereabouts. I would be quite tempted to buy a few today and then apply for a very large excess in the open offer (assuming the share price remained significantly above the open offer price).

[talk2dubya] 20/1/2021 12:49

Hi Timbo - I think it’s more likely the future contracts and expansion based on those that has contributed towards the price increase + placees buying in the open market if they did not get what they wanted.

[timbo003] 20/1/2021 12:47

It is interesting that the ex-date for the open offer is tomorrow rather than today (or yesterday), as the ex date is normally the day before an open offer announcement

I wonder if that has contributed to the unusual price action today, i.e. shareholders who might normally sell a few of their existing holding in order to pay for the open offer shares may be holding off until they have gone ex and new investors buying a few today with the intention of loading up in the open offer?

[talk2dubya] 20/1/2021 12:45

Agreed it will move north again soon, will take my 15k from me in one hit at the full ask.

Some of those delayed buys from 62p earlier make my holding look very small indeed!

[amt] 20/1/2021 12:42

Very short of stock. We could finish at 70p today.

[jerarnie1] 20/1/2021 12:38

Very encouraging RNS's. It will be interesting to see if lead times to SOP are shortened for more traditional OEM's in future too ? For me the feather in the cap will be OEM 3 (+ 4) approval/nomination and (another) game changer....

[rivaldo] 20/1/2021 10:59

Buying at 65p and 66p coming in now.....

[bdaonion] 20/1/2021 10:48

As EV gains momentum, another possibility is Rivian which is American and has received $2.65bn in funding from Amazon and Ford. Production starting this year to build trucks and SUVs.

[amt] 20/1/2021 10:39

Yes Bones that was the other point that suddenly time scales have been compressed so everything seems to happening somewhat earlier than previously thought.
Maybe if they let shareholders have 1 in 10 share allocation they would already cover the cost of cell 3 and I would be more than happy.
Recent large placements at RUA and TWD have seen the share price 40 to 60% higher shortly afterwards by the way.

[bomber13] 20/1/2021 10:30

Thanks for some great posts on this emerging structural growth story .

Hopefully , this fundraising will be enough to snare OEM 9 together with a lot more business from OEM 8 , so one wonders how soon after the general meeting on 8th February we will hear of contract signatures , particularly given that speed and time seem to be of the essence .

Given what ST is saying about other potential chunky bits of new business , one also wonders how near we are to decisions being taken on cells 3 , 4 and 5 , and , after that , AN Other plant altogether .

Indeed , assuming that the £2m from private investors is an absolute shoe-in , ST will have just over £9m spare from the fundraising for working capital purposes and " other opportunities or requirements that present themselves , such as incremental capital expenditure improvements and ad hoc projects " . That to me sounds like a contingency plan for cell 3 already ?

This fundraising , the growth in group assets , and the burgeoning long term contracts will be doing ST's credit rating no harm at all , and , with interest rates where they are now , I strongly suspect debt of some form or other will play a part in the company's growth at some point ?

Onwards and upwards for this increasingly not so little Liverpudlian specialist engineer .

[amt] 20/1/2021 10:30

It's possible no further funding would be required for cells 3,4 and 5 if the build up to capacity is smooth over 4 years. Given they get their investment back every 15 months.

[spookies] 20/1/2021 10:28

this placing has certainly livened up this board. enjoy reading all the comments.

[amt] 20/1/2021 10:13

Yes Finncap could not have a target of say £1 otherwise people would be wondering way the placing was at 50p

[knownowt] 20/1/2021 10:08

I believe that 'target Price' would be better phrased 'we believe these shares represent good value up to....'. After all, they are only one person's subjective view, and that person can be judged by their track record. Until recently there hasn't been much on which to base forecasts but many of us have held shares in SCE for a long time because we believed, and continue to do so. This is not a trading stock and our share price horizons are just that - some way to go!
A cynic would say that a low TP following a placing is to justify the('low')price at which the placing was done; when there is good market demand, it would be expected that placings were offered at a narrow discount.

[balcony] 20/1/2021 09:59

Longshanks-I like the tiger reference to the area.

[sate_uk] 20/1/2021 09:56

The way I see this is that it is like they have sold 25% of the company for £20m and it will further dilute the shares. The shares may not have dropped on the news but they won't go up as much either in the future. I understand the need for cell 2 and the need to build capacity without any orders in advance due to the time scales involved. However this is a much more serious fund raising than any previous one although it is at least at good value compared to the others where you would have to say they sold themselves short. As long as this is now the benchmark price for moving forward then we will just have to wait a little longer for our investments to pay off. I hope that the company will eventually use the capacity of cell 1 and it's earnings will generate enough to sustain the company independently into the future before any talk of cell 3.
Sate

[amt] 20/1/2021 09:54

Usually find with SCE it takes a week or two before the large investors have been through all the papers and got the go ahead to buy so perhaps in a couple of weeks we will see a strong upside.

Auto tech is a hot sector now, Seeing machines really in favout at the moment

[pugugly] 20/1/2021 09:43

amt - Possibly some funds might be forced to sell if (after the recent doubling plus) the weight of the holding breached their diversification rules - BUT cannot think of any at the moment where this could apply

[longshanks] 20/1/2021 09:40

Looks like some peeps didn't get all they wanted in the placing...This is entering mid-cap territory now (certainly as far as AIM is concerned). Serious interest is coming to the Knowsley Tiger.

[talk2dubya] 20/1/2021 09:35

Finncap have a habit of giving low target prices following a placing I have noticed.

[talk2dubya] 20/1/2021 09:35

Amt - it’s only one share for every 37, if people have significant enough holdings for that to be meaningful I doubt many would need the cash to take up that entitlement ?

[amt] 20/1/2021 09:30

Target price are usually based on forecasts of a year or 2 ahead so won't reflect say 5 year potential.
There will be people selling in the next few days to have enough cash to buy the open offer if they are short of cash.

[bones] 20/1/2021 09:23

Finncap out with a new detailed research note. On expanded share count they have a “target price” of 69p. TP’s are a bit meaningless though!

[bones] 20/1/2021 08:53

Albert, I guess there is cause and effect. The more certainty about capacity, the more certainty the contracts. Build the roads and the cars shall come.

[longshanks] 20/1/2021 08:53

The point is that if they were done and dusted, they wouldn't have the capacity available in time. This are just very confident that they will be. And so too is Pinkfoot