A quick line in a follow up to my earlier piece entitled "shares to avoid at all costs":-
http://michae1mouse.blogspot.co.uk/2017/07/shares-to-avoid-at-all-costs.html
I've been informed that Winnifrith has written a piece about Trakm8 where he says that the business is bad because:-
"It is bad becuase it just does not generate free cashflow."
and later
"The fact is that TrakMK8 is still not generating free cashflow and that makes the valuation absurd."
Trakm8's valuation is around £33m.
Let's address this issue.
Firstly, Trakm8 didn't generate Free Cash flow this year largely because of heavy investment and delayed contracts. However, let's see what happens next year and not forget that they had good cash generation in the prior year enabling them to pay a 2p dividend.
I'm not sure what Winnifrith's beef is with Trakm8, perhaps they refused to turn up at one of his silly insignificant investor shows? Who knows.
Anyway let's expose the duplicitous and hypocritical little berk for what he is.
A question for Winnifrith. What is the Free Cash Flow at these companies? OptiBiotix, Premaitha Health, Big Sofa Technologies and Concepta?
I'll save you some time. They are all cash guzzlers with sod all revenues on ludicrous market caps. Yet good honest Winnifrith is pumping these companies on behalf of his organ grinder Adam Reynolds for all his worth. Have you no shame Winnifrith?
OptiBiotix (Opti) - Cash guzzler, revenues £288,000, market cap. £53m
Premiatha (Nipt) - Cash guzzler, revenues £3.1m, market cap. £32m
Big Sofa (BST) - Cash guzzler, revenues £757,000, market cap. £15m
Concepta (CPT), Cash guzzler, revenues £3,730 (that's not a joke btw), market cap. £14.5m.
In your words Winnifrith, it makes them "bad companies on absurd valuations".
Just by way of comparison
Trakm8 (Trak) - Cash generated from operations £700,000 and £4.5m (2016), revenues £27m, market cap. £33m.
No wonder Winnifrith is a failed investor who's ended up pimping shares for others. I rest my case m'lord.
Of course, this is AIMHO and I'm sure Winnifrith is a wonderful honest delightful human being ;)
Tuesday, 4 July 2017
Shares to avoid at all costs
If you asked me what is the easiest way to lose money then I'd say (in general) invest in a company with a multi-million pound capitalisation that has next to zero revenues and clearly needs paid cheerleaders to try to keep the share price propped up until the next dilutive fund raising. True jam tomorrow companies.
Here's a quick list of companies to avoid at all costs.
OptiBiotix (Opti), Premiatha Health (Nipt), Concepta and Big Sofa Technologies.
Firstly, I have chosen these companies because they boast the toxic combination of someone called Adam Reynolds and Tom Winnifrith. Organ grinder and monkey respectively.
Secondly, they all have multi-million pound market caps. based on hot air and the promises of vast riches to come. You'll be lucky if even one of these companies actually fulfills anything like it's promise. I have doubts any will get anywhere even if they survive at all.
If you care to look at their reports you'll also see that the revenues they generate are next to nothing and it goes without saying that profits are years away. The one thing you will be able to guarantee is that there'll be plenty of dilutive fundraisings since they'll all struggle to generate any cash.
Let's look at a couple of these companies shall we.
OptiBiotix. I've written about this company before. Always on the verge of multi-million pound deals, and has been since I set up a thread getting towards 1.5 years ago:-
https://uk.advfn.com/cmn/fbb/thread.php3?id=35291865
Filter all the trolls (that's pretty everyone except me :) ) and you'll see I've been absolutely bang on with this one.
Understandably the share price has gone nowhere in this time since it truly is a jam tomorrow stock. Last reported revenues were less than £300,000. Market cap. is £53m. Yes it really is laugh out loud silly since the business model hasn't even been proven. All RNS's regarding so-called deals give absolutely no guide to future revenues. Why? The usual b*llsh*t about confidentially. It's funny how the revenue generating, profitable, cash generative companies don't seem to have a problem with this issue isn't it?
So are things on the up for OptiBiotix? Well given that the interim period ended in May and they've since had an AGM then surely investors have been given a guide to revenues, cash on the balance sheet, cash outflow, future projections etc.
No they haven't. Why might that be do you think? I'll leave it to your imagination.
Did anyone shout pathetic revenues and cash-call AHOY captain? I couldn't possibly comment.
Premiatha Health. Even worse. Revenues to be reported this year just £3.1m. Market cap. £32m. Burning cash like it's going out of fashion and litigation hanging over it like the sword of damocles.
Again it's just laugh out loud silly.
Have a look at BST and CPT as well. Is there a pattern emerging? ;)
I don't do advice on the blog, but personally I'd avoid companies like this like the plague.
Another partnership to be aware of is the other combination of a bloke called Nigel Wray and Winnifrith.
Take a look at the R4E advfn thread. Despite numerous highly dilutive fund raisings, R4E still has far too much debt and unbelievably can't guarantee that it won't breach it's banking covenants again:-
https://uk.advfn.com/cmn/fbb/thread.php3?id=30989538
Oh dear! Doesn't bode well does it.
Just for clarity, I offer no advice and all the views and opinions expressed are entirely imo.
Here's a quick list of companies to avoid at all costs.
OptiBiotix (Opti), Premiatha Health (Nipt), Concepta and Big Sofa Technologies.
Firstly, I have chosen these companies because they boast the toxic combination of someone called Adam Reynolds and Tom Winnifrith. Organ grinder and monkey respectively.
Secondly, they all have multi-million pound market caps. based on hot air and the promises of vast riches to come. You'll be lucky if even one of these companies actually fulfills anything like it's promise. I have doubts any will get anywhere even if they survive at all.
If you care to look at their reports you'll also see that the revenues they generate are next to nothing and it goes without saying that profits are years away. The one thing you will be able to guarantee is that there'll be plenty of dilutive fundraisings since they'll all struggle to generate any cash.
Let's look at a couple of these companies shall we.
OptiBiotix. I've written about this company before. Always on the verge of multi-million pound deals, and has been since I set up a thread getting towards 1.5 years ago:-
https://uk.advfn.com/cmn/fbb/thread.php3?id=35291865
Filter all the trolls (that's pretty everyone except me :) ) and you'll see I've been absolutely bang on with this one.
Understandably the share price has gone nowhere in this time since it truly is a jam tomorrow stock. Last reported revenues were less than £300,000. Market cap. is £53m. Yes it really is laugh out loud silly since the business model hasn't even been proven. All RNS's regarding so-called deals give absolutely no guide to future revenues. Why? The usual b*llsh*t about confidentially. It's funny how the revenue generating, profitable, cash generative companies don't seem to have a problem with this issue isn't it?
So are things on the up for OptiBiotix? Well given that the interim period ended in May and they've since had an AGM then surely investors have been given a guide to revenues, cash on the balance sheet, cash outflow, future projections etc.
No they haven't. Why might that be do you think? I'll leave it to your imagination.
Did anyone shout pathetic revenues and cash-call AHOY captain? I couldn't possibly comment.
Premiatha Health. Even worse. Revenues to be reported this year just £3.1m. Market cap. £32m. Burning cash like it's going out of fashion and litigation hanging over it like the sword of damocles.
Again it's just laugh out loud silly.
Have a look at BST and CPT as well. Is there a pattern emerging? ;)
I don't do advice on the blog, but personally I'd avoid companies like this like the plague.
Another partnership to be aware of is the other combination of a bloke called Nigel Wray and Winnifrith.
Take a look at the R4E advfn thread. Despite numerous highly dilutive fund raisings, R4E still has far too much debt and unbelievably can't guarantee that it won't breach it's banking covenants again:-
https://uk.advfn.com/cmn/fbb/thread.php3?id=30989538
Oh dear! Doesn't bode well does it.
Just for clarity, I offer no advice and all the views and opinions expressed are entirely imo.
Sunday, 5 March 2017
What exactly is going on here?
There's a great expression that states "bull**it baffles brains".
I don't know why it's just come to mind, but I have been running through a few recent RNS releases from the CEO of a company called OptiBiotix, Stephen O'Hara.
I don't know where to start really, but let's revisit this RNS released at the end of November. It's their most recent Scientific and Commercial Update:-
http://uk.advfn.com/stock-market/london/optibiotix-h-OPTI/share-news/OptiBiotix-Health-PLC-Scientific-and-Commercial-Up/73014647
So it's blah, blah, blah.........
then we get this:-
"OptiBiotix reports that it has reached late stage commercial discussions with six commercial partners across its technology and product platforms. A number of these discussions have been ongoing for many months and have involved extensive due diligence of OptiBiotix's science, intellectual property, and the partners assessment of the scale of the market opportunity across international markets. These discussions include a number of leading industry corporate players who provide product development, manufacturing, distribution, and/or routes to global markets.
Whilst OptiBiotix cannot guarantee that all discussions will lead to commercial deals it wants to update shareholders on the ongoing commercial progress being made across all of its products and platforms."
Now that first sentence sounds great doesn't it? "OptiBiotix reports that it has reached late stage commercial discussions with six commercial partners across its technology and product platforms."
I don't know why it's just come to mind, but I have been running through a few recent RNS releases from the CEO of a company called OptiBiotix, Stephen O'Hara.
I don't know where to start really, but let's revisit this RNS released at the end of November. It's their most recent Scientific and Commercial Update:-
http://uk.advfn.com/stock-market/london/optibiotix-h-OPTI/share-news/OptiBiotix-Health-PLC-Scientific-and-Commercial-Up/73014647
So it's blah, blah, blah.........
then we get this:-
"OptiBiotix reports that it has reached late stage commercial discussions with six commercial partners across its technology and product platforms. A number of these discussions have been ongoing for many months and have involved extensive due diligence of OptiBiotix's science, intellectual property, and the partners assessment of the scale of the market opportunity across international markets. These discussions include a number of leading industry corporate players who provide product development, manufacturing, distribution, and/or routes to global markets.
Whilst OptiBiotix cannot guarantee that all discussions will lead to commercial deals it wants to update shareholders on the ongoing commercial progress being made across all of its products and platforms."
Now that first sentence sounds great doesn't it? "OptiBiotix reports that it has reached late stage commercial discussions with six commercial partners across its technology and product platforms."
but the last paragraph tells you all. It doesn't have a single commercial deal secured at this stage.
Let's move on.
December 2016:-
http://uk.advfn.com/stock-market/london/optibiotix-h-OPTI/share-news/OptiBiotix-Health-PLC-Joint-Product-Agreement-with/73122363
Wow! A joint product agreement with a multi-national. Excellent. Is this one of the six possible deals they were referring to? Well to be honest, I haven't a clue. If it is then in actual fact it's not a commercial deal at all.
"The aim of the Agreement is to develop weight management products containing SlimBiome(R) technology in a range of foods and OTC products which, if successful, will be launched into the Asian market in the second half of 2017. "
They are just developing products with a partner.
What also confuses me is this.
They then say:-
"The Company requires its identity and commercial details to remain confidential and no further details can be disclosed at this time."
A bit weird when not long after Stephen O'Hara clearly stated in an interview that the company in question was a subsidiary of Tata. The bulletin boards had been awash with this information already. Eh?
Most recently we had this:-
http://uk.advfn.com/stock-market/london/optibiotix-h-OPTI/share-news/OptiBiotix-Health-PLC-Launch-of-products-at-Vitafo/73978952
In essence I think it says that they are attending a trade show with some of their new products. So that's still no commercial agreements then?
I love this bit:-
"This has paralleled discussions with manufacturers, formulators and distribution partners to develop a range of product formulations to meet different application needs in international markets. The overall aim of this work has been to increase industry awareness of LP(LDL) (R) to develop numerous opportunities with national and international partners who have rights to specific formulations and presentations in different territories. This could create the potential for revenue streams at multiple points in the value chain including sale of the strain as an ingredient by manufacturers and royalties from the sales of higher value white label formulations and branded products."
Wow! The potential for revenue streams. It doesn't get better than that. Sarcasm.
In summary, it appears to me that there isn't one commercial deal that has been landed or have I somehow missed the details somewhere?
It appears to me that the only current revenue generator is some newly formed dietary brand called "Go Figure" in which OptiBiotix are the majority stakeholders (64%).
Last reported revenues were a little over £80,000. If I was holding shares in this company, I'd be questioning when and from where are significant revenues going to be generated?
Despite frequent RNS releases, it doesn't appear that significant revenues are anywhere close yet. Let's not mention cashflow and profits.
I would be very surprised if the company doesn't have many future highly dilutive fundraisings. Hopefully they may prove me wrong.
Finally, does anybody remember "Coleman Balls", well how about this one, "OptiBollox".
Just a reminder that my blog consists of my personal thoughts only on various companies. I never issue buy or sell advice in shares. Please DYOR.
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