Market's view on Biome Tech
Published on April 2024
- The bioplastics division is anticipated to show continued growth in the U.S.
- The RF Technologies division is believed to have improved, potentially reaching breakeven this year.
- Concerns about dilution from new share issues are noted.
- Criticisms include the company’s high cash burn, the inability to sell crucial portions of the business, and failure to meet financial targets consistently.
- The company has been described as lacking liquidity, making it difficult for investors to sell their shares.
- Recent trading updates suggest some positive movement in cash reserves, but doubts remain about outstanding debts and profitability.
- Skepticism is expressed regarding the management’s ability to meet financial targets, despite the company having no bank debt and some positive developments in contract acquisitions.
- CEO Paul Mines’ decision to sell shares has been viewed negatively.
- There is a general lack of confidence in the company’s leadership, particularly the CEO and board members, with a call for them to step down due to perceived incompetence and destruction of shareholder value.
- The company’s financial stability is questioned, with specific references to potential future financial rescues needed.