Surface Transforms Share Discussion Threads

[sunshine today] 14/11/2023 09:51

Umm, ideally you want growth to come from within.

So they list, on flotation receiving some funds and then it’s game on.

The directors here have just milked the herd of cows.

Aided by the city.

[geko5trade] 14/11/2023 09:47

Sunshine Today, you are missing the point. Listings, in the main, are for those companies that require access to the markets in order to grow. That’s the thing that brings the market into being. I don’t begrudge companies raising money but I expect them to be responsible and accountable.

[sunshine today] 14/11/2023 09:38

Umm, looking in the header post this company has now sucked £70M from investors over the years.

It’s placing No 18 at 10P this time round.

The moral of the story is for investors to stay well clear of ANY company that has ever had a cash raising exercise.

On balance you have stung time and time, and time, again.

This stock is clearly far more attractive for a new investor than the poor souls that stuck by the company.

That’s not the way it should work.


MY advice is to go for cash rich companies, with huge Personal Director holdings, who pay dividends and don’t come round with the begging bowl, on a par with your church.

[albert_einstein] 14/11/2023 09:37

I agree with amt, why were the shares not suspended prior to the fundraising rather than let them go into freefall?.

It has been clear for some time that certain members of the investment community have been privy to price sensitive information on this Company.

Take that person who kept offloading stock in the mid 20's, even after the £100m contract announcement. Will he be investigated for potential insider dealing? I doubt it.

[albert_einstein] 14/11/2023 09:28

I may be completely naive here but if you are having production scale-up issues are there not consultants out there that you can bring in to help guide you through the process. Even if you have to pay them a king's ransum to do so?.

I mean it was crucial that they got things right at every stage of the process and to employ operatives who are basically learning as they go seems very amateurish. Of course people need to be trained how to operate and maintain new machinery but do you not need a portion of people who already have that skillset?

[quazie12] 14/11/2023 09:17

Well said Geko5. Agree with what you say. I don't necessarily disagree with much of what Pinkfoot says either. I have been investing for 45 years worked in finance, in industry, the whole bit and I know what it takes to get a business from loss making to profit. Surface Transforms have a good story, it appeals to venture capital and have enjoyed support along the way but management have failed big time and the jury is out. Changes are needed

[amt] 14/11/2023 09:06

They are probably paying nearly half a million in expenses for this fund raise so one would have thought they could have got the wording clear enough.

[geko5trade] 14/11/2023 09:01

Well I’m glad Pinkfoot does post because he presents a very well thought through bull case and brings valuable insights with up to date info. I also agree with supernumerary in that the language used by the board in announcements, approved though they are, is muddled and opaque. I don’t think a slap on the wrists is sufficient to change things, however hard that slap is.
Pinkfoot I accept the point that if they weren’t a plc all this wouldn’t see the light of day. However the reason they are a plc and have a listing is to be able to raise money from the capital markets and PI’s so it’s right that with that access there is an additional level of accountability. In my view the board falls down in this respect. As I said these minnows require knowledgeable boffins and good cooperate governance and the latter is rightfully essential for a listed company and is lacking.

[quazie12] 14/11/2023 09:01

Sorry SIPP or ISA

[quazie12] 14/11/2023 09:00

Eh ? They could buy without the tax incentives if this is the bargain you say it is. Sorry I have no sympathy for greedy investors who want it all ways FFs. They could buy the shares in the market this morning in another tax free environment eg supply or USA but of course that's not generous enough for some.

[amt] 14/11/2023 08:58

I would love to be a new investor now where Downside risk is minimal and a 30 bagger is very possible in 3 years time.
I will have to settle for a possible ten bagger in 3 years time.

[quazie12] 14/11/2023 08:57

Don't you love the way that RNSs pretty much falsely claim this notional discount to the share price prior to announcement of placing. Conveniently ignoring the share price falling off a cliff in the lead up which placees have already been selling into.

[amt] 14/11/2023 08:54

Good point Pinkfoot. Perhaps tax incentives need to be improved further for AIM companies. Somehow we need to get a market more like the US where failure / setbacks are not punished so harshly. At the same time a lot of the rubbish on AIM needs to be prevented from listing in the first place.

[bones698] 14/11/2023 08:44

Sure someone predicted 10p a share lol it almost got there today . Placing sorted at least now they need to sort the manufacturing issues and perhaps a new bod

[amt] 14/11/2023 08:43

Two questions to answer please.

Where is the 30m Capex for phase 3 coming from given that they need to progress that sooner rather than later.

If the financing is voted down or the loan is not forthcoming will the subscription from general shareholders also be cancelled or will we be left in the lurch.

[pinkfoot2] 14/11/2023 08:42

AMT-I share your disappointment but investing in early stage stuff really needs the tax incentives to go with the risk-I bought a lot of stock in this under EIS, as did several VCTs.The latter couldn’t follow through on this raise due to the rules-they will be annoyed.

Cavendish have just restated their target at 70p-one assumes the maths on the new share issue

The good news is they have raised £8.3m in a shocking market-my glass is half full

[amt] 14/11/2023 08:34

The point is there is something fundamentally wrong when taking an enormous risk with only a slight chance of success by investing early vs investing at a lower price when most of the risk has gone.
It's either been badly handled or the AIM market is not fit for purpose or a combination of both.

[volsung] 14/11/2023 08:32

Bought a small stake here. Fresh funding at multi-year low and a very healthy pipeline. Still a big gamble but significantly derisked imho

[mr macgregor] 14/11/2023 08:31

I expect this will bounce then be taken out. Rubbish management will be retained to keep the price down then ejected pronto. Dreamers will get nowhere near what they're hoping for.

[pugugly] 14/11/2023 08:14

All trades this morning marked as sells - Suspect they are buys by bottom fishers. Anyone any direct knowledge?

[balcony] 14/11/2023 08:14

Bagpuss-Its out now.

[bagpuss67] 14/11/2023 08:05

Were we not expecting the results of the accelerated bookbuild this am?

[pinkfoot2] 14/11/2023 07:56

Let me try again-this is a company on an enormous hockey stick ramp with 15/16 individual processes in production of the finished article.Stepping up production, extra shifts, stretched team-it’s difficult and thus far is proven to be a challenge.That is not a crime-I knew the challenges myself and highlighted the company’s challenge was execution risk.

I also said yesterday that if this was a private company, these issues would have been part of daily challenges.As a plc, it’s a running commentary and they get blown out of proportion.

I invest in early stage companies-not start ups.This company will be a billion pound company within 3 years if it can harness and manage the execution risk.The good news is they have a £400m order book and it’s supportive-

[amt] 14/11/2023 06:02

I think there is little doubt that over the next year the company will become very successful and ultimately a very good chance of it becoming a billion market cap. However the issue is that those of us who have taken an enormous risk in the last few years will get much less reward than somebody buying now with little risk and much more upside.
That's why I have concluded its not worth investing in any new companies but best to wait until they are derisked.