Surface Transforms Share Discussion Threads

[theoldcodger] 04/2/2021 13:59

I do wonder if in addition to the exciting prospects, some of the current share price strength may be due to the interest generated by the placing/open offer and that with the open offer massively oversubscribed, it's apparent that there is a strong appetite for the shares from current holders (albeit at a price which is now at a substantial discount to the current market price, although was only a sensible one when the placing/open offer was announced) and rather than there being the probability of them (ie current shareholders) selling in large numbers, many are in fact looking to increase their exposure to the company.

Of course there will be profit taking at some point, quite probably after the new shares have been listed, but that should represent a good long-term buying opportunity.

Only my thoughts.
TOC

[graham1ty] 04/2/2021 13:33

With the price at these levels, and the Open Offer not actually closing until 11am tomorrow, this is going to be massively oversubscribed. Perhaps we should all tone down our expectations.

Against that, I do believe the Board are honourable and the Open Offer document does make a commitment towards looking after smaller shareholders. There is no legal reason why someone with £5m lying around could not apply for 10m shares, knowing anything they get can be flipped for a 50% return. However, I hope the Board can do what it can legally do to limit the return of “chancers̶1; and reward small applications in full.

Over to you advisers and Board to work out how to achieve that

[jjmills56] 04/2/2021 13:31

Is that £20.26 or 2026AD? If the latter what is your p/target please ?

[bagpuss67] 04/2/2021 13:21

I didnt sell this!!! Not that dim...

[pinkfoot2] 04/2/2021 13:20

I’ve nearly 3m shares now-and I’m not a seller.I’m a bit surprised at the action over the last few days but not complaining.This is a great company with class execs-a rare thing on some of the dross I’ve seen of late

[longshanks] 04/2/2021 13:13

I am sure that whatever shares you sold Bagpuss were at a profit, and in that respect, you should welcome the gains realised already.

Don't forget there are 4m shares available to buy - more than they have ever made available in an open offer before. You will get some excess shares but perhaps less than you wanted if demand is as high as most feel is likely.

[norbert colon] 04/2/2021 13:08

Also now nicely over £100m mcap which will hopefully help draw some institutional investment.

[bagpuss67] 04/2/2021 12:50

Longshanks. Shame because putting the cash in place has cost me a bit as I sold some shares to do it. I wouldn't have done that if it was clear I could get no material excess. Maybe it was clear and I missed it.

[longshanks] 04/2/2021 12:47

Welcome Norbert and Recut.

Placings are often associated with some price weakness, but there are exceptions to that rule. In the case of ST, the share price recovered very strongly on the back of the 2020 placing and hasn't looked back since. I am not expecting any retrace and with increased visibility, and strong imminent news flow suspect we will see a continued march towards my 2026 price target.

[geko5trade] 04/2/2021 12:46

I don't think it would matter if they did. It would present a text book buying opportunity on the chart and a buying opportunity supported by the placing price. imo of course.

[bones] 04/2/2021 12:40

Recut more, I think that highly unlikely as most the new investors are placee institutions and high net worth serious investors. With the future planned out here and the pipeline being what it is, they will not sell! A few open offer guys might but again I doubt that many. As ever with sharp rises, there will be natural profit taking from traders but SCE is not really a trader’s share.

[recut more] 04/2/2021 12:34

I'm new here also but I have a concern that when the new shares are issued at a price of 50p with current price being around 75p with an instant 50% profit that as soon as the shares are issued the price will drop potentially down to 50p as profit takers step in for an easy ride??

[norbert colon] 04/2/2021 12:26

I'm a new buyer having thumb-sucked at the 20p area last year. Happy to pay up for the anticipated growth. Exciting business.

[rivaldo] 04/2/2021 12:19

Great to see buying at the full 75p offer now. Loving that chart :o))

[longshanks] 04/2/2021 12:06

That was my thinking too, Bagpuss - but I had comms with David Bundred and he convinced me of the arguments against.

[bagpuss67] 04/2/2021 11:49

Paid all the costs of the raise. Why not take a couple more million quid now from equity. They can generate a decent return on it. Agree though not promising.

[longshanks] 04/2/2021 11:29

I am 100% sure they will be issuing a maximum of 4m shares in the Open Offer.

As such it is a statement of confidence that no further funding is needed in the foreseeable future, or that they expect further fund raising to be done at a much higher price.

Given our foreseeable future sees a sharp rise in turnover, the confidence that both capex and working capital needs can be largely met by this funding round is impressive.

On your question Albert about diversified application for carbon ceramic. There was a time when ST was effectively a material research outfit and various applications were explored. The only one with any traction was braking but with the surge in interest for commercial space projects, one could speculate that there is a compelling argument for a strong, light, durable material like carbon ceramic to have a role.

[cheese666] 04/2/2021 11:02

Waggle, it certainly sounds like you've earned that bit of good fortune from the last placing.
I'm very interested to see what happens with this placing. I think that there's an argument to be made either way between satisfying all requests or taking the opposite path and only granting the bear minimum.

[albert_einstein] 04/2/2021 09:49

This may seem like a stupid question but does Surface's carbon-ceramic technology have potential applications in other areas than just braking?

I realise that the market for braking alone is more than enough to occupy them for the forseeable future but was just wondering if there might be opportunities for licensing deals or joint ventures in other areas.

[waggle] 04/2/2021 09:47

Cheese, i applied for 75000 in the previous excess offer (believing that i would get scaled back) and got the lot!! i was rather worried at the time, but now it is a source of quiet satisfaction due to the fact that i have been invested since 2004 at 70p. now in profit in both real and nominal terms! i have applied for more this time around but am not hopeful.

[bagpuss67] 04/2/2021 09:27

Well I covered my huge (for me)excess ask. Not hopeful but would have regretted not trying. Do have a decent position anyway so not the end of the world if it I don't get any more

[pinkfoot2] 04/2/2021 07:26

I agree-they have raised more than enough and I doubt there will be much of any excess supply.

[bones] 04/2/2021 07:07

I don’t believe anyone’s basic 1 for 38.xxx will be scaled back. What I took from the Q&A was that it was highly unlikely that any further fund raise will be extended in the open offer beyond the 1 for 38.xxx. It will only be those shares not applied for in the basic offer that will be made available for those seeking excess entitlements. IMO.

[bagpuss67] 03/2/2021 20:34

Looked again. Today at noon. But appears HL have given some leeway until 9am tomorrow. Thanks all

[toffeeman] 03/2/2021 20:32

I thought the deadline for committing to the excess was yesterday