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Remember Clarke wasn’t CFO or CEO, he was technical director of SXX, I think he did a good job, WoodSmith is one hell of a project, which will benefit the North of England massively, but financially it’s a mammoth project so in my view was always better suited under the umbrella of the likes of AAL.
I always had concerns in SXX with respect to the product and the funding, perhaps management should of marketed the project for sale earlier before construction even started, starting part funded concerned me hugely, that was ultimately a mistake as starting construction perhaps raised expectations of shareholders, brought more shareholders into the company due to so much local news coverage and ultimately resulted in a cash crisis due to the ramped up monthly running costs, that could not be solved with a small offering.
In fairness to the CEO he tried, took something from an idea to reality that will create thousands of job so credit to him. Unfortunately for the shareholders that lost money that is the stock market, we have all had painful financial losses in companies with potential that didn’t come off for various reasons, that’s business and why I think you should always spread your risk no matter how passionate you become about an investment, remember it’s not a fan club.
As you know EML is a different product, an established product and buttons in terms of capex so I don’t have the same concerns here and I think Clarke is a fantastic addition to the company, in terms of technical knowledge, site operating experience and contacts in the industry. Remember this thing can be built quickly so it’s important to have a man that’s actually operated a mine before in place. I also think the SXX experience will mean he won’t make the same mistakes that happened there as he will be very aware of the issues.
All in my personal opinion of course, DYOR etc
Did you also explain to him that by using the system he will be able to buy his stock back for circa 6 to 8% more than he sold to so he will have a reduced Gross Margin?
This whole concept is niche in my view, most FD’s would prefer currently available finance without the admin headache of buying and selling then buying back stock with a resultant reduction in margin. Plus many businesses raw material stock isn’t paid for and title transferred until 60 to 90 days from the point of purchase due to credit terms which will mean legally selling it will be complex. Plus all the talk of livestock, traditional livestock finance is already available.
I normally frequent the advfn forum so don’t normally post here, but I had to comment today. I’ve been a proud shareholder in Puretech for sometime having purchased around the ipo. Given the progress that has been made in the last few years the current share price is in my personal opinion an absolute bargain given the market cap is backed up by cash and Karuna stock, there is so much more to Puretech than that. Research yourself, the website is great and webcasts well worth a full listen, I think the CEO is the real deal. Great to hear that this company, which I have to admit forms a large proportion of my current portfolio, is finally being recognised and very impressive sized purchases Dallo! good luck all.